In his ruling last Friday, Judge Posner dismissed the case
citing that neither Apple nor Motorola has compelling proof of damages. The
Judge did so with prejudice, preventing both the companies from re-filing
claims.
In his verdict he wrote:”It would be ridiculous to dismiss a
suit for failure to prove damages and allow the plaintiff to re-file the suit
so that he could have a second chance to prove damages. This case is therefore
dismissed with prejudice; a separate order to that effect is being entered
today.”
FRAND means “fair,
reasonable and nondiscriminatory” the term refers to a licensing obligation
that is often required by standard-setting organizations for members that
participate in the standard-setting process. In this case Motorola has pooled some
patents for the FRAND, which have become industry standards now.
He further added: “To begin with Motorola’s injunctive
claim, I don’t see how, given FRAND, I would be justified in enjoining Apple
from infringing the ’898 [patent] unless Apple refuses to pay a royalty that
meets the FRAND requirement. By committing to license its patents on FRAND
terms, Motorola committed to license the ’898 [patent] to anyone willing to pay
a FRAND royalty and thus implicitly acknowledged that a royalty is adequate
compensation for a license to use that patent. How could it do otherwise? How
could it be permitted to enjoin Apple from using an invention that it contends
Apple must use if it wants to make a cell phone with UMTS telecommunications
capability — without which it would not be a cell phone?”
The judgment is sort of a legal victory for Motorola and Google,
but the comments on the FRAND terms may go against Motorola in other cases.
Earlier in April Motorola won a similar patent battle
against Microsoft. In that case Motorola Mobility Holdings Inc. (MMI) won a US
International Trade Commission ruling that boosts its chances of blocking
imports of Microsoft’s Xbox gaming system from entering the US. In his ruling, ITC
Judge David Shaw said that Microsoft was violating four of five Motorola
Mobility patents. These findings are subject to review by the six-member
commission, which has the power to ban imports that infringe US patents.
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