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Robard - Microsoft Versus Motorola

Robard - Microsoft Versus Motorola

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Published by: ESTAnightshift on Dec 01, 2012
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12/04/2012

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ORDER- 1
UNITED STATES DISTRICT COURTWESTERN DISTRICT OF WASHINGTONAT SEATTLEMICROSOFT CORPORATION,Plaintiff,v.MOTOROLA, INC., et al.,Defendants.CASE NO. C10-1823JLRORDER GRANTINGMICROSOFT’S MOTIONDISMISSING MOTOROLA’SCLAIM FOR INJUNCTIVERELIEFMOTOROLA MOBILITY, INC., etal.,Plaintiffs,v.MICROSOFT CORPORATION,Defendant.
Case 2:10-cv-01823-JLR Document 607 Filed 11/30/12 Page 1 of 18
 
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ORDER- 2
I. INTRODUCTION
This matter is before the court on Plaintiff Microsoft Corporation’s (“Microsoft”)motion for partial summary judgment dismissing the relief of an injunction sought byDefendants Motorola, Inc., Motorola Mobility, Inc., and General Instrument Corporation(collectively, “Motorola”) for patent infringement of Motorola-owned H.264 standardessential patents subject to reasonable and non-discriminatory (“RAND”) commitments.(Mot. (Dkt. ## 139 (sealed), 141 (redacted))).
1
Having considered Microsoft’s motion,Motorola’s response (Resp. (Dkt. # 143)), Microsoft’s reply (Reply (Dkt. # 152)), allattachments to the briefing, and the governing law, and having heard oral argument onMay 7, 2012, the court GRANTS Microsoft’s motion (Dkt. # 139).
II. BACKGROUNDA.
 
The IEEE and the ITU as Standard Setting Organizations
Microsoft and Motorola are both members of the Institute of Electrical andElectronics Engineers (“IEEE”) and the International Telecommunication Union (“ITU”).The IEEE and the ITU, neither of which are parties to the instant dispute, areinternational standards setting organizations. Standards setting organizations play asignificant role in the technology market by allowing companies to agree on commontechnological standards so that all compliant products will work together. Standardslower costs by increasing product manufacturing volume, and they increase price
1
While the parties in this action have both filed affirmative claims in this matter, becauseMicrosoft filed the complaint initiating the instant action, for purposes of this order, the courtnames Microsoft as the “plaintiff.”
Case 2:10-cv-01823-JLR Document 607 Filed 11/30/12 Page 2 of 18
 
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ORDER- 3
competition by eliminating “switching costs” for consumers who desire to switch fromproducts manufactured by one firm to those manufactured by another.One complication with standards is that it may be necessary to use patentedtechnology in order to practice them. If a patent claims technology selected by astandards setting organization, the patent is called an “essential patent.” Here, Motorolais the owner of numerous patents “essential” to certain standards established by the IEEEand the ITU. (
See
10/21/10 Motorola Offer Ltr. (Dkt. # 79-5); 10/29/10 Motorola OfferLtr. (Dkt. # 79-6) (see list of attachments).) In order to reduce the likelihood that ownersof essential patents will abuse their market power, many standards setting organizations,including the IEEE and the ITU, have adopted rules related to the disclosure andlicensing of essential patents. The policies often require or encourage members of thestandards setting organization to identify patents that are essential to a proposed standardand to agree to license their essential patents on RAND terms to anyone who requests alicense. Such rules help to ensure that standards do not allow essential patent owners toextort their competitors or prevent them from entering the marketplace.
B. Motorola’s Statements to the IEEE and the ITU
This lawsuit involves two standards—the IEEE 802.11 wireless local area network (“WLAN”) standard (“802.11 Standard) and the ITU H.264 advanced video codingtechnology standard (“H.264 Standard”).
2
(
See
 
generally
Compl. (Dkt. # 1); Am. Compl.
2
The ITU developed the H.264 Standard jointly with two other standard settingorganizations—the International Organization for Standardization and the InternationalElectrotechnical Commission. (Partial S.J. Order (Dkt. #188) at 3.)
Case 2:10-cv-01823-JLR Document 607 Filed 11/30/12 Page 3 of 18

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