WASHINGTON, Dec 5 (Reuters) - Google unit Motorola Mobility
is not entitled to ask a court to stop the sale of Apple iPhones
and iPads that it says infringe on a patent that is essential to
wireless technology, the U.S. Federal Trade Commission said on
Wednesday.
In June, Judge Richard Posner in Chicago threw out cases
that Motorola, now owned by Google and Apple had filed against
each other claiming patent infringement. Both companies
appealed.
In rejecting the Google case, Posner barred the company from
seeking to stop iPhone sales because the patent in question was
a standard essential patent.
This means that Motorola Mobility had pledged to license it
on fair and reasonable terms to other companies in exchange for
having the technology adopted as a wireless industry standard.
Standard essential patents, or SEPs, are treated differently
because they are critical to ensuring that devices made by
different companies work together.
Google appealed to the U.S. Court of Appeals for the Federal
Circuit. The FTC said in its court filing that Posner had ruled
correctly.
The commission, which has previously argued against courts
banning products because they infringe essential patents,
reiterated that position on Wednesday.
"Patent hold-up risks harming competition, innovation, and
consumers because it allows a patentee to be rewarded not based
on the competitive value of its technology, but based on the
infringer's costs to switch to a non-infringing alternative when
an injunction is issued," the commission wrote in its brief.
The case is Apple Inc. and NeXT Software Inc. V. Motorola
Inc. and Motorola Mobility Inc., in the U.S. Court of Appeals
for the Federal Circuit, no. 2012-1548, 2012-1549.
Follow us on Twitter @ReutersLegal | Like us on Facebook