2012) was a United States Court of Appeals for the Ninth Circuit case about Reasonable and Non-Discriminatory (RAND) Licensing and foreign anti-suit injunction.
While the U.S. domestic contract litigation had been proceeding, Motorola sued Microsoft in Germany for patent infringement in July 2011.
After granting to Microsoft this preliminary injunction, the case was brought to the Appellate court in an interlocutory appeal by Motorola.
Motorola had indicated its willingness to license these patents on RAND terms on a worldwide, non-discriminatory basis in letters to both the Institute of Electrical and Electronics Engineers (IEEE) and International Telecommunication Union (ITU).
The offer asked for a 2.25% royalty rate on the price of all end products Microsoft sold utilizing the technologies protected by these patents.
[2] The German injunction was not self-enforcing; to enforce the judgment, Motorola would need to pay a security bond to cover Microsoft's potential damages, should the infringement ruling be reversed on appeal.
[4] Microsoft claimed that Motorola's licensing offers breached its agreement to provide reasonable and non-discriminatory terms to all potential licensees.
In its holding, the court discussed each of Motorola's arguments above, and rejected them as follows:[2] As the anti-suit injunction was only meant to stop Microsoft from suffering damages while the case was decided, it was only in effect until a final decision was made and only stopped Motorola from enforcing the injunction from the German patent infringement case.