Google drops patent claims against Microsoft after FTC investigation
Google has asked the US International Trade Commission (ITC) to withdraw two patent infringement claims against Microsoft over video coding technology used in smartphones and Xbox consoles, after agreeing to a decree issued by the Federal Trade Commission (FTC) limiting when it can block access to standard-essential patents.
Google had asked the ITC to block Xbox imports into the US as it claimed the product infringed H.264 patents held by its subsidiary Motorola Mobility (MMI) but on Tuesday, filed a motion to withdraw its complaint.
Last week, Google was forced to agree to a court order limiting when it can seek injunctions to block access to patents considered essential for the development of mobile, computer and gaming technology.
The order, issued by the FTC, followed a 19-month anti-trust investigation into unfair conduct and search results bias. Google was cleared of promoting its own internet services above competitors in search results, but commissioners concluded that the company had not met the conditions of fair, reasonable and non-discriminatory patent licensing since purchasing MMI in August 2012.
But while Google has dropped its complaints relating to standard-essential patents, a third infringement claim covering wireless peer-to-peer network technology is still active. The company is also seeking damages from Microsoft for past infringements in district court lawsuits in Wisconsin and Washington, and said that Tuesday’s decision will have no effect on these claims.
Commenting on the motion, David Howard, deputy general counsel at Microsoft, said in a statement: "We're pleased that Google has finally withdrawn these claims for exclusion orders against Microsoft, and hope that it will now withdraw similar claims pending in other jurisdictions as required by the FTC Consent Order.”
Robert Stoll, a former commissioner for patents at the US Patent and Trademark Office and partner at Drinker Biddle and Reath in Washington D.C., said that while a more comprehensive framework is needed to clarify when exactly injunctive relief should be used in standard-essential patent disputes, Google’s decision to drop its claims against Microsoft was “encouraging”.
“This is clearly a change from the position [Google] held before as they did not drop the claims until after the agreement was published.”
“It is clear that the FTC is watching and I am sure they want to see Google implement the settlement in the spirit that it intended. It will be interesting to see how things are resolving when Google reports in 30 days as required by the settlement agreement,” he said.
