Just when you start thinking the U.S. government doesn’t have universal power of every other nation, they go and do something crazy. A federal judge has ruled that Motorola will not be allowed to ban the sale of Microsoft products, the Xbox 360 and anything with Windows 7, in Germany, despite the fact that a German court granted it back in May.
Let’s start from the beginning: Motorola had sued Microsoft after finding that the video player used in many of Microsoft’s digital products, including Internet Explorer, and the Xbox media player, infringed on their own media playing software patents. In May, the German legal system found in favor of Motorola, and a judge granted them an injunction that would force retailers to stop selling any infringing products, which is pretty much everything made by Microsoft. Unfortunately for Motorola, a U.S. judge had already filed a restraining order against Motorola over the ban. Yesterday, the U.S. court of appeals upheld that decision, so effectively the U.S. has revoked Motorola’s right to impose a ban in Germany, granted by German courts.
As it turns out, this isn’t actually a gross abuse of power. Since the dispute between Microsoft and Google, Motorola’s parent company is based on U.S. patent law, the ultimate decision-making power rests in the hands of the U.S. judicial system. The Ninth circuit court of appeals, which made yesterday’s ruling, conceded in their ruling that the basis for the decision may seem counter-intuitive, but justified their decision; ”At bottom, this case is a private dispute under Washington state contract law between two US corporations.”
from Reuters
Google can't enforce German Microsoft injunction: ruling
A U.S. appeals court on Friday ruled that Google Inc's Motorola Mobility unit cannot enforce a patent injunction that it obtained against Microsoft Corp in Germany, diminishing Google's leverage in the ongoing smartphone patent wars.
The injunction would have barred Microsoft from "offering, marketing, using or importing or possessing" in Germany some products including the Xbox 360 and certain Windows software.
The ruling against the German injunction came from the 9th U.S. Circuit Court of Appeals in San Francisco.
Microsoft deputy general counsel David Howard said the company was pleased with the ruling. A representative for Google's Motorola unit declined to comment.
Brian Love, a professor at Santa Clara Law school in Silicon Valley, said the decision helps Microsoft counteract a favorable dynamic for Google in Germany.
"To some extent Germany has a reputation as place you can go and get an injunction relatively easy," Love said.
The current Xbox 360 is the market-leading console in the United States. Microsoft is expected to unveil its next generation Xbox video game console in 2013.
Microsoft has said that Motorola's patents are standard, essential parts of its software and that Motorola is asking far too much in royalties for their use. Google closed on its $12.5 billion Motorola Mobility acquisition this year.
Microsoft sued Motorola in the United States in 2010, and Motorola then filed a lawsuit in Germany. Earlier this year, Microsoft announced plans to move its European distribution center to the Netherlands from Germany ahead of a possible injunction.
After a court in Mannheim issued the sales ban, U.S. District Judge James Robart in Seattle granted Microsoft's request to put the German order on hold earlier this year. According to Robart, the ruling would remain in effect until he could determine whether Motorola could appropriately seek a sales ban based on its standard essential patents.
In its ruling on Friday, a three-judge 9th Circuit unanimously upheld Robart's order. Since Microsoft had already brought a lawsuit against Motorola for breach of contract in the United States, U.S. courts have the power to put the German injunction on hold, the 9th Circuit said.
"At bottom, this case is a private dispute under Washington state contract law between two U.S. corporations," the court ruled.
European regulators are investigating claims that Motorola over-charged Microsoft and Apple Inc for use of its patents in their products and thereby breached antitrust rules.
The case in the 9th Circuit is Microsoft Corporation vs. Motorola Inc, Motorola Mobility Inc and General Instrument Corporation, 12-35352.
