Saturday, January 12, 2013

Microsoft cuts back in Germany: why?


Microsoft Corp. is moving its European logistics operations, run by an outsourcing service provider, from Germany to the Netherlands owing to a legal dispute with Motorola Mobility Holdings Inc., a spokesman said Monday.
The moves make Microsoft the first major technology player to shift a business arm out of Germany over fears potential court rulings on patents could harm business. Roughly a hundred jobs at outsourcing service provider Arvato, owned by Bertelsmann AG, will be affected by the move, a person close to the matter said. A second Microsoft spokesman said no jobs will be lost at the company due to the change. Microsoft has about 2,700 employees in Germany, according to its website. The spokesman declined to comment on the cost of the move.
Microsoft's decision comes about two weeks ahead of a ruling expected from a court in Mannheim over a case concerning video patents brought by Motorola Mobility, which is being acquired by Google Inc. Last week, Microsoft asked a U.S. court for a restraining order to prevent Motorola Mobility from taking action based on a ruling from the court.
The motion is aimed at preserving Microsoft's ability to sell in Germany its Windows software, Xbox 360 videogame console and other products that rely on the video patents at issue in a battle with Motorola.
Motorola didn't respond to an e-mailed request for comment.
German courts, which preside over the largest economy in Europe and have specialist judges rather than juries in patent disputes, have played host to an increasing number of smartphone and tablet lawsuits in recent months.
Patent judges in some cases have handed down sales bans for alleged infringement. In February, Motorola enforced an injunction that briefly forced Apple Inc. to stop selling certain devices. A higher court later said Motorola can't demand Apple stop those sales for antitrust reasons.
Another German court last year ordered Samsung Electronics to stop selling two tablet models as doing so would violate the law against unfair competition and would imitate Apple's iPad. Samsung produced an amended version of the 10.1 Galaxy model, the 10.1N, which remains on sale.
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