The US Justice Department is set to clear Google's USD 12.5 billion acquisition of Motorola Mobility as early as next week, people familiar with the matter told the Wall Street Journal. However, competition regulators in the US and Europe remain concerned about Google's commitment to license Motorola patents to competitors on fair terms, the paper's sources said, and will closely monitor Google's use of the patents. The European Commission has set a deadline of 13 February to decide whether to approve the acquisition. The Justice Department also is set to clear the acquisition of Nortel Networks' patent portfolio by a consortium including Apple, Microsoft, Ericsson and Research In Motion for USD 4.5 billion, people familiar with the matter told the paper. A Justice Department spokeswoman declined to comment.
The approval comes as major players in the mobile industry make pledges to not use the acquired intellectual property to limit competition. Microsoft promised on 08 February to not seek court injunctions against any company that it believes has violated its standard-essential patents. It also said it wouldn't transfer those patents to a third party, such as a patent-litigation firm, unless they adhere to Microsoft's promise. Apple has made similar promises, while also calling on standards organizations to develop a framework for creating consistent FRAND royalty rates and ensuring that no company attempts to block sales of allegedly infringing products through an injunction. The WSJ also disclosed a letter from Cisco Systems, written at the end of January, that said "the telecommunications industry would benefit from a more consistent and transparent application of FRAND."
On 08 February, Google sent letters to dozens of standards organizations promising that it would offer licences for FRAND patents in Motorola's portfolio. Unlike Apple and Microsoft, however, it didn't rule out seeking injunctions against any potential violators. "Google will not apply for injunctive relief against a willing licensee," the company wrote in its letter. A willing licensee would meet certain conditions that include providing sales estimates and paying royalties into an escrow account. Google didn't say how it would act toward unwilling licensees, though it added that it "reserves its right to seek any and all appropriate judicial remedies against counterparties" that refuse to license its FRAND patents.
