BERLIN - Germany's system of Is Litigating Disputes over patents bad for business? Microsoft's decision to move icts European logistics and distribution headquarters to the Netherlands from Germany HAS generated a Debate over patent law here, where 'it is easy to block the sale of a rival's product Even Before year Infringement claim is verified. Cited the potential consequences Microsoft of a lawsuit Brought Against it in Germany by Motorola Mobility as a factor in decision to move ict icts logistics center to the Netherlands from Düren, a small German town near the Dutch border. Motorola Mobility HAS Asked short in Mannheim, Germany, to stop Microsoft from Xbox game consoles Distributing icts and Windows 7 operating system software Employ Because THEY have video streaming technology That Motorola claims to own. The court in Mannheim is scheduled to rule on Motorola's request on April 17. Microsoft is Taking no chances. Thomas Baumgärtner, Microsoft has Spokesman in Unterschleissheim, Germany, Said The Possibility That the court might grant in Mannheim Motorola's request and the European ban distribution of the Xbox and Microsoft Windows 7 Prompted HAD to seek a Friendlier basis. The company Transferring icts Began operations this year to a location in the Netherlands, Which It Will not Disclose. "The move is Taking up as we speak," Mr. Said Baumgärtner last week. In The Last Two Years, Apple, Samsung, Nokia, Microsoft and Motorola Mobility Have Defended Themselves gold Either Introduced Against patent claims in Germany. In one case, Apple won a ruling at a court in Dusseldorf That banned the sale of the Galaxy Tab 10.1 tablet computer in Germany. Samsung Quickly modified the device, releasing the Galaxy Tab has 10.1N month later. Apple sued to block sales of the new device, a goal short in Munich icts request denied. In March, Apple won a Munich court ruling Against Motorola Motorola Mobility Because HAD Used one of Apple's patented image management technology on mobile phones icts. Motorola Said It Had the devices modified to remove the infringing technology. Nokia is Suing Apple in Düsseldorf and Mannheim, as well as in Britain and the Netherlands, accusing Apple of using 13 Nokia patents without authorization in ict iPhone, iPad and iPod Touch. The lawsuits, Often Claiming violations of patents That Are regarded essential Globally Recognized shares of mobile technology standards, the European Commission Prompted to open investigations this year Against Samsung and Motorola Mobility. Joachim Henkel, a professor of management at the Technical University of Munich, big international companies Said Were Often seeking behavior to exploit the German system for Strategic advantage. Said Mr. Henkel the obvious and prominent intellectual property dispute in the mobile phone Sector, Which Have Involved short aussi in Asia, Britain and the United States, bogging down Were cutting-edge companies in court. "All of These boxes Infringement in Germany, Europe, the United States and Asia are Having a hampering effect on innovation globally," Mr. Henkel said. "Usually, what masquerades as a patent fight is in actuality a fight motivated by business strategy." The process HAS Turned the German patent courts in Mannheim, Düsseldorf and Munich Into Some Of The Most overworked in Europe. Two-Thirds of all patent claims in Europe are now filed in Germany, According To the Munich law firm Meissner Bolte, Which Does patent litigation. In a sense, Germany HAS Become a destination for fast, effective one-stop patent challenges, much as Britain is for libel and the state of Delaware is for registration of American companies. While thesis may Benefit viable financially German law firms, technology and smaller German technology experts say the FIRMS system is being abused to generate nuisance claims. Determining the substance of a patent claim in Germany Cdn take years. DURING That Time, a rival Canon Be Effectively stopped from using a basic piece of technology, without a legal Often Reason That Holds Up in the end
hair dryers. That Was the box with unitedprint, a company in Dresden, Germany, that 'Does online printing for small and midsize Businesses. In 2006, unitedprint WAS sued by a competitor, Vistaprint, of Bermuda, Which Said unitedprint WAS using a piece of ict patented design technology enabled users to print That business cards and fliers in high resolution. The German Patent Court Rejected Vistaprint's claim in 2007, Vistaprint order appealed. Five years later, on March 22, the German Federal Court of Justice set the matter to rest, siding with unitedprint. Icts in ruling, the German short Said the European Patent Office, based in Munich, Had erred in 1994 When It Issued the patent at the center of the dispute. Although Vistaprint lost on the legal issues, the company DID Succeed in getting unitedprint icts to exchange business operations. Beginning in July 2007, unitedprint stopped using the patented technology at the heart of the dispute. It Has since devised new methods of printing do not make That use of it, the goal to defend lawsuits Were Costly. Anja Sebald, the head of the legal department at unitedprint, Said It Was simple for companies to Obtain ownership rights to technology That Was Already in the public domain. "It is too easy to Obtain Often a software patent from the European patent Authorities," she said. "Many times, the People Do not Have Awarding the patents under the direct expertise to make Informed year jugement." Requesting unitedprint is a six-figure sum in euros from Vistaprint to recover Legal Costs. Unlike the German patent system, the American system Gives judges the option of Proportionate Awarding damages INSTEAD Granting of injunctions That ban outright sales of products in Disputed boxes where "irreparable harm" Can not Be Demonstrated. In Germany, if a company has short-determined Legally That Holds a patent, it Cdn after year injunction to ban Competing uses if asked. There is no option of Granting proportional Monetary damages. Some Businesses are clamoring for German exchange to better shield from nuisance suits Themselves. In 2009, 200 small and midsize Businesses created a lobbying group, the Bundesverband Informations-und Kommunikationstechnologie, based in Hamburg, with the goal of Altering the legal system. Aim the group's members, Which hardware and software are Primarily companies, so far Have beens Unable to persuade German lawmakers. In 2005, the German Parliament has unanimously nonbinding resolution urging approuvé to the exchange system to limit abuse. Never intended the call WAS Followed by action. The last activity cam in 2009, When the German Justice Ministry Produced a favorable report on the outcome, Said Johannes Sommer, the managing director of the association. Goal since then, little progress has-been There, He Said. "The topic is too complicated and the pressure from the German Mittelstand of small and medium-sized Businesses HAS not strong enough beens," Mr. Sommer said. Microsoft's decision to move a business unit from Germany Could prompt changes. Microsoft HAD beens running icts European logistics business from Düren for more Than a decade Under a contract with Arvato, a unit of the German media conglomerate Bertelsmann. Businesses are reluctant German goal to wade Into A Political Debate Publicly. Klaus Markus, Arvato Spokesman year, Arvato Said preferred not to how Microsoft's criticism of the German patent litigation system. Likewise, a representative of Bitkom, the leading German technology industry group, Declined to comment. Both Microsoft and Google, Which is Acquiring Motorola Mobility, are members of Bitkom. Mr. Sommer Said That fear of nuisance patent claims Was The top concern for Many Businesses. "We are a very patent-holder-friendly country in Germany, to a fault," Mr. Sommer said.
German Short at Center of Tech Rivals' Patent Fights
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