Antitrust: Commission finds that Motorola Mobility infringed EU competition rules by misusing standard essential patents

The European Commission today adopted a decision which finds that Motorola Mobility's (Motorola) seeking and enforcement of an injunction against Apple before a German court on the basis of a smartphone standard essential patent (SEP) constitutes an abuse of a dominant position prohibited by EU antitrust rules in view of the particular circumstances in which the injunction was used (see also MEMO/14/322). The Commission has ordered Motorola to eliminate the negative effects resulting from it. The Commission has also taken a commitment decision in a separate investigation concerning Samsung (see IP/14/490).

 Commission Vice President in charge of competition policy Joaquín Almunia said: "The so-called smartphone patent wars should not occur at the expense of consumers. This is why all industry players must comply with the competition rules. Our decision on Motorola, together with today's decision to accept Samsung's commitments, provides legal clarity on the circumstances in which injunctions to enforce standard essential patents can be anti-competitive. This will also contribute to ensuring the proper functioning of standard-setting in Europe. While patent holders should be fairly remunerated for the use of their intellectual property, implementers of such standards should also get access to standardised technology on fair, reasonable and non-discriminatory terms. It is by preserving this balance that consumers will continue to have access to a wide choice of interoperable products".

 SEPs are patents essential to implement a specific industry standard. It is not possible to manufacture products that comply with a certain standard without accessing these patents. This may give companies owning SEPs significant market power. As a result, standards bodies generally require their members to commit to license SEPs on fair, reasonable and non-discriminatory (so-called "FRAND") terms. This commitment is designed to ensure effective access to a standard for all market players and to prevent "hold-up" by a single SEP holder. Such access on FRAND terms allows a wide choice of interoperable products for consumers while ensuring that SEP holders are adequately remunerated for their intellectual property.

read full article at European Commission