Microsoft, Google, and Apple talk up “fair and reasonable” patent license fees

Microsoft today issued a brief statement promising to make "essential patents" available to competitors at fair and reasonable licensing rates, and promised not to sue companies making products that infringe these patents. The actual patents themselves weren't disclosed, but Microsoft joins both Google and Apple in making recent statements on so-called fair, reasonable, and non-discriminatory (FRAND) licensing terms. Such licensing terms designate certain patents as essential to complying with industry standards, making them available for licensing at (supposedly) lower-than-usual rates.

Google, or at least someone close to the company, said earlier this week that it will continue offering Motorola Mobility patents under fair terms after completing its acquisition of the company. (Coincidentally, Microsoft sued Motorola in November 2010 for refusing to offer patent licenses under fair terms.) Apple, meanwhile, went directly to the European standards body behind 3G wireless networking, suggesting that standard licensing rates be set for the patents necessary to build mobile devices. Apple has apparently refused to pay the royalty fees demanded by Motorola and Samsung, saying they are excessive for patents covered by FRAND obligations.

Microsoft's statement today was titled "Microsoft's support for industry standards," and says the following: 

1. Microsoft will always adhere to the promises it has made to standards organizations to make its standard essential patents available on fair, reasonable, and nondiscriminatory terms.
2. This means that Microsoft will not seek an injunction or exclusion order against any firm on the basis of those essential patents.
3. This also means that Microsoft will make those essential patents available for license to other firms without requiring that those firms license their patents back to Microsoft, except for any patents they have that are essential to the same industry standard.
4. Microsoft will not transfer those standard essential patents to any other firm unless that firm agrees to adhere to the points outlined above.

Despite many of the big players pledging support for a more standardized licensing process, we imagine there will still be plenty of patents left over for legal battles to continue.