Antitrust

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FTCToday, the Federal Trade Commission announced that it has approved a modified final order that settles its investigation into Motorola Mobility’s alleged anti-competitive practices surrounding its standard-essential patent licensing and enforcement program (for more background, see our original post on the case).  Here’s the Commission’s final decision and order, as well as a final…

Late last week, the American Antitrust Institute submitted a very interesting petition to the U.S. Dept. of Justice and the Federal Trade Commission.  In the petition, which is titled “Request for Joint Enforcement Guidelines on the Patent Policies of Standard Setting Organizations,” the AAI urges these agencies to step up their enforcement of the antitrust laws with respect to SSOs themselves — not merely the participants in the standard-setting process.  To that end, the AAI requests that the FTC/DOJ (1) issue specific guidelines for what should be included in SSO patent policies, and (2) hold SSOs liable for not adopting procedural safeguards to prevent patent hold-up behavior.
Continue Reading American Antitrust Institute calls on FTC, DOJ to force standard-setting organizations to adopt more stringent patent policies

A few months ago, we took note of a dispute in the Southern District of New York between two foreign makers of Universal Serial Bus (USB) products — Lotes and Hon Hai/Foxconn.  You can read our prior post for more background on the dispute, but in summary, Lotes accused Foxconn of reneging on licensing commitments…

European-Flag1We generally focus on U.S.-specific standard-essential patent issues here at the Essential Patent Blog, but often there are some international developments that are worth noting.  Today brings us one of those, as the European Commission announced that it has sent a Statement of Objections to Motorola Mobility as part of its investigation into Motorola’s potential…

usbIt’s no surprise that most of the attention being paid to standard-essential patent issues is focused on the companies involved in the “smartphone wars” — Motorola, Microsoft, Apple. Samsung, etc.  But while these consumer product companies are of course affected by issues involving standard-essential patents, so too are their component suppliers.  A lawsuit filed this past fall in the Southern District of New York by Lotes Co. against Hon Hai Precision Industry Co. and Foxconn over SEP issues relating to the Universal Serial Bus (USB) 3.0 standard is a great example of this.  Here, we attempt to provide a brief overview of the issues in the Lotes-Hon Hai case.
Continue Reading Catching up on…Lotes v. Foxconn RAND/antitrust dispute over USB 3.0 standard-essential patents

It’s no secret that government agencies in the United States and abroad are paying more attention to standard-essential patent issues.  More evidence of this trend came this past Friday, when Deputy Assistant Attorney General Renata B. Hesse of the Antitrust Division of the U.S. Department of Justice delivered a speech at the Global Competition Review Antitrust Law Leaders Forum in Miami.  Hesse’s speech makes it clear that FRAND licensing issues are a high priority for the DOJ’s antitrust division, and that the agency remains open to exploring new ways of enforcing FRAND commitments — potentially including pursuing standard-essential patent holders for violations of Section 2 of the Sherman Act (anticompetitive monopolies or attempts to monopolize).
Continue Reading Antitrust Deputy Assistant AG’s speech may foreshadow increased DOJ enforcement activities relating to standard-essential patents

gavelWe’ve previously discussed the wide-ranging assertion activities of Innovatio IP Ventures LLC, a non-practicing entity that has targeted thousands of companies across the country over patents related to the IEEE 802.11 wireless networking (Wi-Fi) standard.  And due to an amended complaint filed in October 2012 by Motorola Solutions, Cisco, and Netgear in the Northern District of Illinois, Innovatio has been facing a litany of charges relating to this licensing and litigation campaign.  These charges include breach of contractual RAND obligations, state law unfair competition, civil conspiracy, and even violation of the federal civil RICO statute.  In November, Innovatio moved to dismiss these claims.  This week, Chief Judge James F. Holderman granted much of Innovatio’s motion, dismissing all of the claims except for the RAND-based breach of contract and promissory estoppel claims.  This ruling is indicative of the substantial hurdles that potential licensees of standard-essential patents face in attempting to show when patent holders’ assertion of rights and licensing demands may cross legal boundaries — and it may also further muddy the already murky waters surrounding the scope of RAND obligations.
Continue Reading Innovatio Update: Wi-Fi manufacturers’ RICO, unfair competition claims targeting Innovatio rejected, but RAND issues remain

Germany

While much of the attention over standard-essential patent litigation focuses on disputes taking place in the United States, the U.S. is not the only venue seeing these showdowns.  SEP-related issues have also arisen in Australia, in Korea, and in Europe (both in the courts and in European Commission investigations).  The courts in Germany — which has recently become a hotbed for patent litigation — have developed a unique procedure for dealing with the assertion of standard essential patents.  Named for a 2009 decision by the Federal Supreme Court of Germany, this is commonly known as the “Orange Book” defense or procedure (or sometimes as the dolo agit or good faith defense).  In this post, we aim to provide a background of this case and some examples of cases where the Orange Book defense has been invoked.


Continue Reading A RANDom glance abroad: German Patent Courts and the “Orange Book” defense