Microsoft v. Motorola: District Court Denies Motorola's Summary Judgment On Microsoft's Claim For A RAND License

Motorola moved for partial summary judgment to dismiss Microsoft's claim for a reasonable and non-discriminatory ("RAND") license agreement to be determined by the district court. As explained by the district court, "Microsoft and Motorola are both members of the Institute of Electrical and Electronics Engineers ("IEEE") and the International Telecommunication Union ("ITU"). The IEEE and ITU, neither of which are parties to the instant dispute, are international standards setting organizations. Standards setting organizations play a significant role in the technology market by allowing companies to agree on common technological standards so that all compliant products will work together. Standards lower costs by increasing product manufacturing volume, and they increase price competition by eliminating "switching costs" for consumers who desire to switch from products manufactured by one firm to those manufactured by another."

Motorola asserted that it would be inappropriate for the district court to fashion a license agreement between Microsoft and Motorola for Motorola's standard essential patents because no license agreement currently exists. The district court disagreed: "Motorola's declaration to the ITU and IEEE constitute binding agreements to license its essential patents on RAND...