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FTC Final Order: Google, Motorola Mobility

FTC Final Order: Google, Motorola Mobility

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Published by Rachel King
The FTC "approved a modified Final Order settling charges that some of Google Inc.’s business practices could stifle competition among manufacturers of electronic devices."
The FTC "approved a modified Final Order settling charges that some of Google Inc.’s business practices could stifle competition among manufacturers of electronic devices."

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Categories:Types, Business/Law
Published by: Rachel King on Jul 24, 2013
Copyright:Attribution Non-commercial

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08/09/2013

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 1
1210120UNITED STATES OF AMERICABEFORE THE FEDERAL TRADE COMMISSION
COMMISSIONERS: Edith Ramirez, Chairwoman
 
Julie BrillMaureen K. OhlhausenJoshua D. Wright
 )In the Matter of ))MOTOROLA MOBILITY LLC, )a limited liability company ))and GOOGLE INC., ) Docket No. C-4410a corporation ))))DECISION AND ORDER
The Federal Trade Commission (“Commission”), having initiated an investigation of certain acts and practices of Google Inc. and/or Motorola Mobility, Inc. (now Motorola MobilityLLC, a wholly-owned subsidiary of Respondent Google Inc.) (hereinafter referred to as“Respondents”), and Respondents having been furnished thereafter with a copy of a draftComplaint that the Bureau of Competition proposed to present to the Commission for itsconsideration and which, if issued by the Commission, would charge Respondents withviolations of Section 5 of the Federal Trade Commission Act, as amended, 15 U.S.C. § 45; and Respondents, their attorneys, and counsel for the Commission having thereafter executed an Agreement Containing Consent Order (“Consent Agreement”), containing admissions byRespondents of all the jurisdictional facts set forth in the aforesaid draft Complaint, a statementthat the signing of said Consent Agreement is for settlement purposes only and does notconstitute an admission by Respondents that the law has been violated as alleged in suchComplaint, or that the facts as alleged in such Complaint, other than jurisdictional facts, are true,and waivers and other provisions as required by the Commission’s Rules; and 
 
 2The Commission having thereafter considered the matter and having determined that ithad reason to believe that Respondents have violated the said Act, and that a Complaint should issue stating its charges in that respect; and having accepted the executed Consent Agreementand placed such Consent Agreement on the public record for a period of thirty (30) days for thereceipt and consideration of public comments; and having duly considered the commentsreceived from interested persons pursuant to Commission Rule 2.34, 16 C.F.R. § 2.34; and having modified the Decision and Order in certain respects, now in further conformity with the procedure described in Commission Rule 2.34, the Commission hereby makes the following jurisdictional findings and issues the following Decision and Order (“Order”).1.
 
Respondent Google Inc. is a corporation organized, existing, and doing businessunder and by virtue of the laws of Delaware, with its principal place of business at1600 Amphitheatre Parkway, Mountain View, CA 94043.2.
 
Respondent Motorola Mobility LLC (formerly Motorola Mobility, Inc.), is a limited liability company with its principal place of business at 600 North U.S. Highway 45,Libertyville, IL 60048, and is a wholly-owned subsidiary of Respondent Google Inc.3.
 
The Federal Trade Commission has jurisdiction of the subject matter of this proceeding and of Respondents, and the proceeding is in the public interest.
ORDERI.IT IS ORDERED
that, as used in this Order, the following definitions shall apply:A.
 
“Respondents” means Google Inc. and Motorola Mobility LLC, and the directors,officers, employees, agents, representatives, successors, and assigns of each; and the jointventures, subsidiaries, divisions, groups and affiliates controlled by Google Inc. or Motorola Mobility LLC and the respective directors, officers, employees, agents,representatives, successors, and assigns of each. For purposes of this Order, an action byor on behalf of either Respondent Google Inc. or Respondent Motorola Mobility LLCshall satisfy an obligation imposed on “Respondents.”B.
 
“AAA” means the American Arbitration Association; a not-for-profit dispute resolutionorganization headquartered at 1633 Broadway, New York, NY 10019,www.adr.org. TheInternational Centre for Dispute Resolution (“ICDR”) is a division of the AAA.C.
 
“Action” means any proceeding whether legal, equitable, or administrative, in the United States or anywhere else in the world.D.
 
“Binding Arbitration” means arbitration to establish a License Agreement that followsthe procedures in Paragraph IV.B.2. of the Order and complies with the following:1.
 
The arbitration is administered by a Potential Licensee’s choice of Qualified Arbitration Organization, or such other arbitration organization or ad hoc group of arbitrators that Respondents and the Potential Licensee mutually agree upon;
 
 3however, if the Potential Licensee does not select a Qualified ArbitrationOrganization within sixty (60) days after the Potential Licensee accepts the offer of Binding Arbitration, Respondent may demand arbitration through its choice of Qualified Arbitration Organization;2.
 
Respondents and the Potential Licensee agree on the number and manner of selectingthe arbitrators; however, if the parties cannot agree within thirty (30) days after selection of the Qualified Arbitration Organization, either party may demand that thenumber and manner be determined by the process stated in the rules of the selected Qualified Arbitration Organization, or if the applicable rules do not specify aselection method, that there be three arbitrators, with each party selecting onearbitrator and those arbitrators selecting the third;3.
 
Respondents and the Potential Licensee agree upon the language and location for thearbitration; however, if the parties cannot agree within thirty (30) days after selectionof the Qualified Arbitration Organization, either party may demand that these matters be determined pursuant to the rules of the selected Qualified ArbitrationOrganization;4.
 
A party to the arbitration may condition its participation on the following:a.
 
The field of use for patents licensed through arbitration is limited to usescovered by the applicable FRAND Commitment(s), and  b.
 
The arbitrator may require reasonable security, including an ongoing escrowof funds to be held by a Qualified Escrow Agent, if the arbitrator determinessuch security is necessary to ensure a party will fulfill the financial terms of anarbitrated License Agreement and the arbitrator sets forth in writing the termsand conditions for the disbursement of such funds and the duties of the escrowagent; and 5.
 
The arbitration is not conditioned on any terms or conditions not explicitly authorized  by the Order; PROVIDED THAT, the arbitration may include any terms or conditions that are mutually agreed to by the parties.E.
 
“Confirmation Letter” means the letter attached as Exhibit A to this Order, in whichRespondents make a binding and irrevocable commitment, conditioned only on thePotential Licensee providing the same binding and irrevocable commitment, to (i) abide by all licensing terms set by a Final Ruling on the Potential Licensee’s Qualified Requestfor a FRAND Determination, (ii) to pay any royalties established through a Final Rulingon the Qualified Request for a FRAND Determination as if the relevant patents had beenlicensed at such royalty rates as of the date Potential Licensee filed the Qualified Requestfor a FRAND Determination, and (iii) identify those terms in the proposed LicenseAgreement attached to the Confirmation Letter that (a) are being challenged through theQualified Request for a FRAND Determination and (b) each party agrees to include inany final License Agreement between the parties that also includes the terms or royalty payments set by a Final Ruling in the Qualified Request for a FRAND Determination.

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