The FTC (Federal Trade Commission) has sided with Apple against Google’s attempt to ban iPhones and iPads over Standard Essential Patents (SEP). The FTC stated that to seek an injunction against the iPhone or iPad would be harmful to both innovation as well as consumers.
The Google Motorola Mobility division contains SEP’s that they’re obligated to license to other wireless companies on FRAND terms, or fair, reasonable and non-discriminatory terms. The FTC stated that a SEP injuction would be a patent hold-up,
“Hold-up and the threat of hold-up can deter innovation by increasing costs and uncertainty for other industry participants, including those engaged in inventive activity. It can also distort investment and harm consumers by breaking the connection between the value of an invention and its reward — a connection that is the cornerstone of the patent system.”
Google did take it a step too far trying to ban the iPhone and iPad. The SEP’s are patents that are crucial to making sure that devices from different companies are still able to work together. The battle over SEP’s should really be settled financially rather than attempting to ban products.
If Google had banned the iPhone and iPad sales, that would essentially make Google’s Android a monopoly, and that’s just bad for business.