Google to Offer Motorola Patents on FRAND Terms
Google Inc. is reportedly planning to send letters to different standards organizations to reassure them that the search giant would license Motorola Mobility Holdings Inc.'s patents on reasonable terms if their planned mergers push through.
Google intends to make clear to the organizations that it would license Motorola's patent portfolio in accordance with fair, reasonable and non-discriminatory (FRAND) terms, according to a source familiar with the matter told Bloomberg. The letter will be sent in a day or so to over 12 leading standards settings bodies, according to source.
The move is a timely one since the European Commission is expected to decide whether it is continuing its investigation or clearing the deal. Google announced its planned acquisition of mobile phone maker Motorola Mobility for about $12.5 billion in August 2011 to acquire its patents to help its patent infringement lawsuits against its Android operating system. The acquisition has been awaiting regulatory clearances. The European regulators will rule on the deal by Feb. 13.
"Since we announced our agreement to acquire Motorola Mobility last August, we've heard questions about whether Motorola Mobility's standard-essential patents will continue to be licensed on FRAND terms once we've closed this transaction," a Google spokeswoman said. "The answer is simple: they will," she added.
FRAND licenses allow companies to develop open standards for systems such as 3G mobile networks by sharing information and technology. Regulatory bodies require companies participating in the development of such systems to license any relevant patents under FRAND terms.
Google's acquisition of Motorola is an attempt to bolster its arsenal against the ongoing legal battles with its competitors. Two weeks before Google announced its plans to acquire Motorola David Drummond, Google's chief legal officer said the company was going to strengthen its patent portfolio to battle its rivals' unfair use of patent litigation to limit competition. Apple and Microsoft Corp. have sued Android devices saying they violate patents.