Microsoft Corp won a federal trade ruling that will force Motorola Mobility Holdings Inc to alter software on some of its Android-based mobile phones to keep bringing them into the US.
A US International Trade Commission judge found that Motorola Mobility infringed a patent covering a program by Redmond, Washington-based Microsoft called ActiveSync, which lets users generate meeting requests among a group. Six other patents were not violated, the judge ruled.
The ruling must still be reviewed by US President Barack Obama, who can override the order on public policy grounds.
“We hope that now Motorola will be willing to join the vast majority of Android device makers selling phones in the US. by taking a license to our patents,” Microsoft’s deputy general counsel David Howard said in an e-mailed statement.
An exclusion order would affect Droid 2, Droid X, i1, Cliq XT, Devour, Backflip, Charm and Clip models, according to a filing with the International Trade Commission.
Motorola Mobility said it was disappointed and would explore options including an appeal.
“Motorola Mobility will not experience any impact in the near term,” a company spokeswoman Jennifer Erickson said in an e-mail.
The ruling probably will push Motorola to reach a settlement and pay Microsoft a licensing fee instead of having to modify the phone software, said Charlie Wolf, an analyst with Needham & Co in New York.
“These cases usually end up with the parties settling,” Wolf said.
The case is part of a broader effort by Microsoft and Apple Inc to curtail the growth of mobile devices that run on Google Inc’s Android operating system. Google licenses Android for free to further its mobile-advertising business.
The platform has become the most popular for smartphones, with more than half of a market for mobile devices that Yankee Group has projected will reach US$360 billion this year.
Microsoft contends it should be paid royalties by makers of mobile devices that run on Android. The software maker has reached licensing deals with Samsung Electronics Co and HTC Corp (宏達電).
Motorola Mobility, which is being bought by Google, refused to pay and instead struck back in a case at the trade agency.
Microsoft’s willingness to license is different from Apple, which wants makers of Android smartphones to make changes to its devices, Wolf said.
IN THE AIR: While most companies said they were committed to North American operations, some added that production and costs would depend on the outcome of a US trade probe Leading local contract electronics makers Wistron Corp (緯創), Quanta Computer Inc (廣達), Inventec Corp (英業達) and Compal Electronics Inc (仁寶) are to maintain their North American expansion plans, despite Washington’s 20 percent tariff on Taiwanese goods. Wistron said it has long maintained a presence in the US, while distributing production across Taiwan, North America, Southeast Asia and Europe. The company is in talks with customers to align capacity with their site preferences, a company official told the Taipei Times by telephone on Friday. The company is still in talks with clients over who would bear the tariff costs, with the outcome pending further
NEGOTIATIONS: Semiconductors play an outsized role in Taiwan’s industrial and economic development and are a major driver of the Taiwan-US trade imbalance With US President Donald Trump threatening to impose tariffs on semiconductors, Taiwan is expected to face a significant challenge, as information and communications technology (ICT) products account for more than 70 percent of its exports to the US, Chung-Hua Institution for Economic Research (CIER, 中華經濟研究院) president Lien Hsien-ming (連賢明) said on Friday. Compared with other countries, semiconductors play a disproportionately large role in Taiwan’s industrial and economic development, Lien said. As the sixth-largest contributor to the US trade deficit, Taiwan recorded a US$73.9 billion trade surplus with the US last year — up from US$47.8 billion in 2023 — driven by strong
A proposed 100 percent tariff on chip imports announced by US President Donald Trump could shift more of Taiwan’s semiconductor production overseas, a Taiwan Institute of Economic Research (TIER) researcher said yesterday. Trump’s tariff policy will accelerate the global semiconductor industry’s pace to establish roots in the US, leading to higher supply chain costs and ultimately raising prices of consumer electronics and creating uncertainty for future market demand, Arisa Liu (劉佩真) at the institute’s Taiwan Industry Economics Database said in a telephone interview. Trump’s move signals his intention to "restore the glory of the US semiconductor industry," Liu noted, saying that
AI: Softbank’s stake increases in Nvidia and TSMC reflect Masayoshi Son’s effort to gain a foothold in key nodes of the AI value chain, from chip design to data infrastructure Softbank Group Corp is building up stakes in Nvidia Corp and Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), the latest reflection of founder Masayoshi Son’s focus on the tools and hardware underpinning artificial intelligence (AI). The Japanese technology investor raised its stake in Nvidia to about US$3 billion by the end of March, up from US$1 billion in the prior quarter, regulatory filings showed. It bought about US$330 million worth of TSMC shares and US$170 million in Oracle Corp, they showed. Softbank’s signature Vision Fund has also monetized almost US$2 billion of public and private assets in the first half of this year,