Motorola Deals Apple a Small Setback With ITC Ruling

Apple’s (NASDAQ:AAPL) battle against Google’s (NASDAQ:GOOG) Android platform was dealt with a blow as U.S. International Trade Commission ruled that Motorola Mobility (NASDAQ:MMI) did not violate Apple’s patents. ^[1] Apple had asked the commission to block Motorola phones such as the Droid and Droid X, claiming they infringed on its patents. Google, meanwhile, is in the process of completing its $12.5 billion acquisition of Motorola Mobility and so gains an advantage over Apple through this win.

Our $500 price estimate for Apple stock is about 20% above market price.

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Motorola pleased with this win

In its press release, Motorola’s spokesperson expressed his pleasure on this win and commented: ^[1]

Motorola Mobility has worked hard over the years to develop technology and build an industry-leading intellectual property portfolio. We are proud to leverage this broad and deep portfolio to create differentiated innovations that enhance the user experience.

This is the second time in recent times Motorola has won a ruling against Apple. Motorola recently won an injunction against Apple’s devices in Germany based on an essential GPRS patent, which will force Apple to either modify its hardware or remove the feature altogether from iPhones and iPads. ^[2]

Setback for Apple

ITC’s ruling represents a setback for Apple, which has been battling in courts with Motorola and other device makers using Android’s platform. Had Apple won this ruling, Motorola would have suffered a product import ban similar to Samsung’s injunction in Germany (see Samsung EU Tablet Ban Another Win for Apple).

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1. Motorola Mobility Comments on Initial Determination from ITC, Press Release, January 13th, 2012 [↩] [↩]
2. German Court Rules in Favor of Motorola Mobility in Apple Litigation, Press Release, December 9th, 2011 [↩]