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Motorola cannot place a ban on Microsoft's products

Many Texas residents understand that disputes arise frequently in business. Furthermore, sometimes business litigation is the only way to resolve these conflicts. This will probably be the case for two major software companies. In connection with a recent contract dispute, a federal judge has ruled that Motorola Mobility will not have the authority to ban Microsoft's Windows products or Xbox gaming systems from the German market.

Motorola Mobility owns patents related to industry standards for Wi-Fi and video compression. As a result, the company petitioned a German court to ban Microsoft products that conformed to those standards. However, Microsoft asked a U.S. District judge to prevent Motorola Mobility from taking any further steps in the German case until a trial is held on an ongoing contract dispute between the two companies. This is because pursuant to a contract, Motorola promised to make its patents available to Microsoft on fair and reasonable terms.

A conflict started when Motorola Mobility asked for royalties of 2.25 percent of the price of items incorporating the patented industry standard. Therefore, Microsoft has filed the breach-of-contract lawsuit. It has argued that Motorola Mobility failed to abide by its obligation to be fair and reasonable.

In the end, the U.S. judge ruled that Motorola Mobility is prohibited from taking any steps to seek a ban of Windows or Xbox until a ruling is made on the contract matter.

There are so many complexities involved in business law. This is definitely true in intricate contract disputes. For this reason, these two companies have hopefully retained adequate legal representation in addressing the various issues of this business conflict.

Source: The Boston Globe, "Motorola can't seek Windows, Xbox ban," Susan Decker, April 13, 2012

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