Google is seeking to block U.S. imports of Apple’s iPhone and iPad over 3G patents held by Motorola Mobility, Bloomberg is reporting.
UPDATE: Bloomberg is theorizing that due to a review of a previous ruling, Apple could face a ban on importing iPhones and iPads, but Google is not filing an injunction at this time.
By Susan Decker and William McQuillen
June 25 (Bloomberg) — A U.S. trade agency said it willreview a judge’s findings that Apple Inc.’s iPhone and iPad tablet computer infringe a patent owned by Google Inc.’s Motorola Mobility unit, in a case that could lead to imports of the devices being banned. The U.S. International Trade Commission said it will review ITC Judge Thomas Pender’s findings that Apple was violating one Motorola Mobility patent. The commission is scheduled to issue a final decision on Aug. 24, and has the power to block devices made in Asia from entering the U.S. The iPhone, iPad and related devices generate 78 percent of Apple’s revenue. The commission said it would review aspects of all four Motorola Mobility patents in the case, including the one found to be infringed. The agency also will consider whether it should be issuing import bans on products found to infringe patents related to industry standards. Notice of the commission’s decision was posted today on the agency’s website. The iPhone generated $22 billion in sales last quarter for Apple, or 58 percent of the company’s total revenue. It was the best-selling smartphone in the U.S., with 29 percent of the market, while Motorola Mobility had 10 percent, researcher NPD Group said May 2. Apple’s iPad dominates the tablet computer market, with 72 percent of the market, according to researcher DisplaySearch. The iPad and related products brought in $9.2 billion for Apple, almost 20 percent of its revenue. Motorola Mobility filed the complaint in October 2010 as a pre-emptive strike after Apple made public statements that phones running on Google’s Android operating system were copying features of the iPhone. The dispute is part of a broader global battle for supremacy in the smartphone and tablet computer markets that also pits Apple against Android-device
manufacturers Samsung Electronics Co. and HTC Corp.
Android is the most popular platform for smartphones, with
61 percent of the market, NPD said.
Apple is appealing its loss in the patent-infringement
complaint it filed at the ITC against Libertyville, Illinois-
based Motorola Mobility, and a federal judge in Chicago last
week threw out patent claims Apple and Motorola Mobility had
filed against each other. Google bought Motorola Mobility in
part to gain access to its trove of 17,000 patents, many on
phone technology.
Cupertino, California-based Apple also has filed a
complaint against Motorola Mobility at the European Union,
accusing the handset manufacturer of misusing patents that
relate to industry standards.
The patent that Pender said Apple infringed relates to the
industry standard for 3G technology used by most phones, and
Motorola Mobility has argued that Apple infringes the patent by
following the standard.
Apple argued that, since Motorola Mobility helped establish
the standard, it shouldn’t be allowed to block use of patent
inventions related to the standard. It filed a lawsuit accusing
Motorola Mobility of breaching its contractual obligation to
license any standard-essential patents on fair and reasonable
terms.
The U.S. Federal Trade Commission, members of Congress and
Microsoft Corp. have filed papers supporting Apple’s argument
that import bans should not be imposed on such patents. Verizon
Wireless, the largest U.S. mobile-phone service provider, and
No. 2 AT&T; Inc. filed papers making similar arguments.
Verizon Wireless, jointly owned by Verizon Communications
Inc. and Vodafone Group Plc, also said an import ban on the
iPhone “would hamper technological development, strand critical
infrastructure investment and cost American jobs.”
The patent that was found to be infringed covers a way to
eliminate noise so signals are clearer. A Wi-Fi patent is
invalid because it doesn’t cover a new invention, the judge
said. No infringement was found on two other patents, for a way
the server tracks which applications are available, and a sensor
to determine the proximity of a person’s head to the phone so it
doesn’t accidentally hang up or dial unwanted numbers.
The case against Apple is In the Matter of Wireless
Communication Devices, Portable Music and Data Processing
Devices, Computers and Components Thereof, 337-745, and Apple’s
case against Motorola Mobility is In the Matter of Mobile
Devices and Related Software, 337-750, both U.S. International
Trade.
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