Motorola may loose Russian sales in Patent rights dispute

[Fire14]

PRESS: Russian company claims US' Motorola violates patent rights



A Russian company, RussGPS, has filed a complaint with Russian law enforcement bodies accusing U.S. mobile handset producer Motorola of violating patent rights, RussGPS' spokesperson Pavel Panov said, Kommersant business daily reported Monday.

Some observers suggested that the accusations could help corrupt law enforcement officials pursue their own interests, Kommersant reported, in what is perceived as a broader campaign of Russian law enforcement against Motorola.

RussGPS has a patent called "Mobile communications terminal" that covers most handsets produced by Motorola and is valid throughout Russia, Panov said adding that Motorola and Russia?s largest mobile handset retailer Euroset have violated patent rights with Motorola supplying and Euroset selling the mobile handsets in Russia.

The list of handsets that violate the patent rights includes seven Motorola models, namely, C115, C261, C333, C390, E365, L6 and L7, Kommersant reported.

RussGPS is looking to sign an agreement with Motorola under which the producer will pay RussGPS for right to import the handsets to Russia, Panov said, adding that retailers would have to pay for the right to sell the handsets. Panov did not specify the expected sum of payments for the license, the daily reported.

Another Russian company, Rimko-XXI, said in late April that it might file a lawsuit against Motorola for violating patent rights. Rimko-XXI said then that Motorola?s CN620 mobile handset, which operates in Wi-Fi and GSM networks, was similar to a Rimko-XXI model for which a patent was received in February 2004.

Meanwhile, RussGPS' complaint against Motorola was included in a criminal case initiated on April 12 on the import of handsets that may pose a threat to health, Panov said, the daily reported.

The case was initiated after law enforcement bodies seized 167,500 Motorola mobile handsets, worth 530 million rubles, from Euroset on March 31, after the handsets had gone through customs clearance. About 50,000 of the seized handsets were destroyed by police in late April, while the fate of the remaining handsets is unknown.

Following the actions of law enforcement bodies, Motorola may lose a considerable share of the market or it may even be forced out of the Russian market, Eldar Murtazin, analyst with Mobile Research Group, said, the daily reported.

In January-March, Motorola was the third largest mobile handset producing supplier in Russia with about 18% of the market, according to Euroset's estimates.

(26.9987 rubles - U.S. $1)

[MOTOhooligan]

If I were Motorola I would stop selling everything to Russia. Phones, routers, radios, cable modems, software, switches, backhauls... EVERYTHING. Bring back everything that's there now that hasn't sold, stop supporting what they've already sold, close down all facilities in Russia, stop selling replacement parts, take down the website in Cyrillic... initiate a self-imiposed embargo against Russia. I'm not saying that Motorola shouldn't keep up their end of agreements that are already in effect but they should not extend those agreements and should not go one step beyond what was originally agreed upon. That solves the problem right there.

If the Russians can't stop corrupt officials from doing stuff like this, why trade with them? Seems like too much of a hassle to me... however, I'm not all that well-versed in international trade agreements or anything.

[Fire14]

I agree MOTOhooligan, they should just stop sending everything including parts & say have a good one. But I think there is enough black market stuff happening over there that it would take a long time before it would cause a dent.

Motorola says accusations of patent right violation "groundless"

US mobile handset producer Motorola considers accusations that the company is violating patent rights "groundless," Motorola said in a press release Monday, citing Greg Estell, corporate vice president for Motorola's Mobile Devices Europe.

Motorola's handsets do not violate the rights of Russia's RussGPS, Estell said, adding that Motorola "is undertaking active steps to challenge the accusations and to protect its intellectual property in Russia."

Kommersant business daily reported Monday that RussGPS filed a complaint with Russian law enforcement bodies accusing Motorola of violating patent rights.

RussGPS has a patent that covers most handsets produced by Motorola and is valid throughout Russia, a spokesperson with RussGPS said, adding that RussGPS was looking to sign an agreement with Motorola under which the producer will pay RussGPS for right to import the handsets to Russia.

Motorola was the third largest mobile handset producing supplier in Russia in January-March with about 18% of the market, according to estimates of Russia?s largest mobile handset retailer Euroset.

End