Microsoft Files EU Complaint against Motorola Mobility

Microsoft reportedly has filed an antitrust complaint against Motorola Mobility with the European Commission. The nature of complaint is somewhat similar to what we have seen earlier in case of Apple’s complaint.

The Cupertino-based technology giant filed its complaint with European Commission last week, raising the issue that the soon-to-be-Google-owned company’s supposed misuse of patents it holds, which are required to be licensed to other companies on ‘fair, reasonable, and non-discriminatory’ (FRAND) terms.

To be precise, the Redmond-based software giant based its complaint over patents regarding online video. Microsoft accuses Motorola Mobility in a post entitled “Google Please Don’t Kill Video on the Web’, saying that mobile-maker is breaking its promise over licensing of FRAND patents, “Motorola is on a path to use standard essential patents to kill video on the Web, and Google as its new owner doesn’t seem to be willing to change course.”

Accusing Motorola Mobility of doing unjust with its handling FRAND patents, Microsoft had to say this:

“For a $1,000 laptop, Motorola is demanding that Microsoft pay a royalty of $22.50 for its 50 patents on the video standard, called H.264. As it turns out, there are at least 2,300 other patents needed to implement this standard. They are available from a group of 29 companies that came together to offer their H.264 patents to the industry on FRAND terms. Microsoft’s patent royalty to this group on that $1,000 laptop?”

Two cents.

That’s right. Just 2 cents for use of more than 2,300 patents. (Windows qualifies for a nice volume discount, but no firm has to pay more than 20 cents per unit.) Motorola is demanding that Microsoft pay more than 1,000 times that for use of just 50 patents.”

As we know that the search giant has already got the green signal from EU and US regulators regarding its Motorola Mobility’s acquisition, Google is currently waiting for the final approval from a number of other jurisdictions, including China.

With another complaint filed against Motorola Mobility’s unjust handling of its FRAND terms, it seems that European Commission will now launch a thorough investigation against the mobile maker to ensure that the Google’s acquisition of Motorola Mobility won’t affect other companies in the market.

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