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Chronicles

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Apple strikes licensing deal with Motorola in Germany, heralds more peaceful times?

Motorola's war with Apple has certainly been overshadowed by the showdown with Samsung.  But, with the latter melodrama shifting into quiet mode, focus is coming back to the battle with Moto.

Engadget Terrence O'Brien

Context & Ripple Effects

Motorola's German campaign against Apple has been running cold since February 2012, when it failed to win a 3G/UMTS-based injunction against Apple there — so a negotiated license is the logical landing spot after the courtroom route stalled. Motorola has form here: it ended all outstanding litigation with RIM worldwide back in June 2010, choosing peace over injunctions once before.

The timing matters because the wider patent war just tilted: on August 27, 2012, Samsung took a $1.049 billion jury verdict in Apple's infringement case, and with that showdown quieting, attention swings back to the Motorola front — now under Google ownership. The breadth of pickup (Ars Technica, CNET, FOSS Patents, 9to5Mac and others) shows how closely the licensing community is watching whether this is a one-off or a template.

First-order effects

  • Apple removes the threat of German injunctions over Motorola's cellular patents by paying for a license instead of fighting them, securing uninterrupted iPhone sales in a key European market.
  • Motorola converts an enforcement strategy that had already failed in court into royalty revenue, validating its standard-essential patent portfolio without needing another injunction win.

Second-order effects

  • Samsung, mid-negotiation with Apple after the $1.049 billion verdict, faces a new reference point: Apple demonstrably will pay to license cellular patents rather than litigate every claim to exhaustion.
  • Google inherits proof that its Motorola acquisition's patent trove is monetizable through deals rather than courtroom wins, shaping how it prices future FRAND demands against other handset makers.

Third-order effects

  • If the pattern holds alongside the 2010 Motorola–RIM global truce, smartphone patent conflicts migrate from injunction warfare toward paid licenses — shifting leverage from whoever wins the courtroom to whoever owns the broadest essential-patent portfolio.
  • Regulators scrutinizing FRAND abuse get a live case study in whether market actors can settle standard-essential disputes bilaterally, which could determine how hard antitrust authorities need to push.

The trend: The smartphone patent wars are pivoting from injunction-seeking litigation toward negotiated licensing settlements, with each bilateral deal resetting the price other licensors and licensees demand.