The European Union believes that Motorola violated the law when it used mobile phone patents to block products by competitor Apple in Germany, the bloc’s executive said today in a preliminary opinion that could lead to hefty fines.

“The protection of intellectual property is a cornerstone of innovation and growth. But so is competition,” EU Competition Commissioner Joaquin Almunia said in a statement.

“I think that companies should spend their time innovating and competing on the merits of the products they offer — not misusing their intellectual property rights to hold up competitors to the detriment of innovation and consumer choice,” he added.

At issue are so-called standard essential patents, which firms must license to others in a “fair, reasonable and non-discriminatory” way because of their importance to the industry. They cover standards for wireless communication, video compression and wireless networks.

As a mobile phone pioneer, US-based Motorola had a treasure chest of some 17,000 patents and 6,800 patent applications. Its wireless arm, Motorola Mobility, was acquired by Google last year.

In a statement, the European Commission said that it believed Motorola violated EU competition rules by enforcing a court injunction on Apple in Germany even after the technology giant agreed to pay patent royalties.

Motorola can now respond to the allegation before the commission makes its final decision.

The institution enforces the EU’s competition rules, which state that no company that dominates a given market should be allowed to use its power to shut rivals out. Violators risk fines that can amount to 10 per cent of their company’s annual global turnover.

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