Motorola’s comeback tour within the U.S. could be shortly coming to an abrupt halt. The model, nonetheless a minor participant within the total marketplace for the greatest Android telephones, discovered latest success with the Motorola Razr line of finances and flagship foldables. Nevertheless, a patent dispute between Sony Ericsson and Motorola Mobility (owned by Lenovo) might remove the provision of Motorola handsets within the U.S., in response to Reuters.
In an preliminary ruling Tuesday, Dec. 17, a choose for the U.S. Worldwide Commerce Fee determined that Motorola’s telephones infringe on key 5G patents held by Sony Ericsson. The smartphones in query embrace these within the Moto G, Edge, and Razr lineups. If the preliminary ruling by the ITC stands, imports of Motorola telephones within the U.S. might be banned, all however eliminating their availability.
The ITC will challenge a closing ruling in April 2025, and if its preliminary determination is upheld, a ban on Motorola telephones within the U.S. is more likely to occur. That might have ripple results all through the U.S. market, as a result of Lenovo made up 14% of the nation’s cellular market share as of Q3 2024, in response to Counterpoint Analysis. Crucially, among the model’s most profitable smartphones are concerned within the dispute.
Motorola’s absence would go away a gap out there, notably the place clamshell foldables are involved. There merely is not one other participant making inexpensive foldables within the U.S. like Motorola did with the Razr 2023 and Razr 2024. It is potential that as a substitute of elevating a rising model like OnePlus, a ban on Motorola telephones would simply make the large three of Apple, Samsung, and Google much more dominant.
In November 2024, one trade report indicated that a significant competitor within the foldable market was contemplating an exit. Getting into 2025, we might be down at the very least one foldable producer if that report seems to be correct. Motorola might signify one other, and it is potential that nobody steps as much as exchange it. We might be again the place we began, with Samsung as the one main clamshell foldable producer and no must innovate as a consequence of a scarcity of competitors.
It looks as if patent disputes within the cellular sector have gotten more and more frequent. OPPO and Vivo not too long ago ended a dispute with Nokia about 5G patents, and OnePlus is now in scorching water once more in Germany over the same challenge. Whereas it is nice that manufacturers are being held accountable for his or her use of patents, it is a disgrace that these choices solely lower the variety of telephones which are out there for shoppers.
Motorola telephones might be banned: How we received right here
If that sounds acquainted, it ought to. Lately, a number of Chinese language manufacturers have grow to be concerned in patent disputes surrounding their makes use of of 5G know-how in smartphones. Notably, Motorola itself is combating the identical battle with Sony Ericsson in a number of markets. Preliminary court docket choices in Brazil and Columbia already dominated in favor of Sony Ericsson, and extra authorized battles are going down in South America and the UK, per Reuters.
How did we get right here? The tide began to show in Sony Ericsson’s favor earlier this month when an ITC choose rejected Motorola’s greatest protection in opposition to the patent infringement claims. Motorola stated {that a} 2011 license settlement between it and Sony Ericsson lined use of Ericsson know-how in Moto G, Edge, and Razr telephones. In different phrases, the corporate is not denying it used the know-how — it is arguing that it was allowed to.
The issue with Motorola’s declare is that the 2011 settlement was penned ages in the past, earlier than the corporate was bought to Google after which bought once more to Lenovo. Extra importantly, a clause within the licensing settlement defined that Motorola would be capable of use the licensed know-how in “commercially affordable updates or extensions of such Licensed merchandise.” The ITC choose dominated in favor of Ericsson, tossing apart Motorola’s argument on the idea that not one of the three cellphone lineups in query even existed on the time the 2011 settlement was reached (by way of IP Fray).
Motorola might discover different authorized avenues to dam the transfer — legal professionals for Lenovo beforehand argued that the licensing settlement was lined by U.Ok. legislation, and prompt that the ITC ought to watch for U.Ok. courts to rule earlier than issuing its personal ruling. After all, in mild of the ITC’s preliminary determination, that did not occur. And if the ITC’s ruling is upheld, Motorola telephones might be off the cabinets for the foreseeable future.
