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  • Motorola's FRAND Licensing Demands: 2.25% of Apple's Sales



    Our coverage of Motorola’s brief injunction against the sale of 3G iDevices in Germany yesterday questioned whether Motorola or Apple was being unreasonable in the licensing negotiations. Evidence is pointing to Motorola's demands wandering into the unreasonable.

    Information released by FOSS patents suggest Motorola’s 3G technologies FRAND licensing offer to Apple that would end the current legal dispute involves Apple handing over a 2.25% share of Apple’s sales. It is unclear if this percentage is of all Apple revenues or a percentage of Apple’s 3G devices sales (seeing as the dispute is over 3G technology).

    Florian Mueller of FOSS patents described Motorola's 2.25% request as “excessive,” especially concerning Apple’s latest quarterly earnings report. In fact if the court forces Apple to pay the 2.25% they’ll owe Motorola just over $2.1 billion out of the $93 billion in iPhone revenue since 2007. Apple successfully suspended the ban claiming that Motorola’s “deal” was anti-competitive and is currently gathering information from other handset makers concerning their FRAND agreements with Motorola.

    The major player not mentioned yesterday in this whole FRAND mess is Google. If Google’s acquisition of Motorola is finalized, and Apple eventually has to pay 2.25% of something to Motorola, all of that money will go right into Google’s coffers. All outcomes point to Apple paying Motorola something, the only variables are how much and if Google will eventually benefit.

    Source: FOSS Patents [via TUAW]
    This article was originally published in forum thread: Motorola's FRAND Licensing Demands: 2.25% of Apple's Sales started by Phillip Swanson View original post
    Comments 23 Comments
    1. gQstatus05's Avatar
      gQstatus05 -
      Quote Originally Posted by unison999 View Post
      No matter what you say, Apple stole the patent and used it for all these years without permission. Not only Apple should pay what Motorola is asking, they should be fined for interest since start sale of 3G iPhone. Until Apple negotiate a rate for the patent, Apple should be forced to not use the 3G with a ban. Maybe Apple will think twice before stealing stuff.
      Apple will get screwed. They stole because according to them a negotiation couldn't be reached in licensing the patent. That's like me asking for your car, you saying no, but I still take it out anyway.

      They have a lot of enemies out there that are plotting. You can't be on top forever.
    1. unison999's Avatar
      unison999 -
      Quote Originally Posted by gQstatus05 View Post
      Apple will get screwed. They stole because according to them a negotiation couldn't be reached in licensing the patent. That's like me asking for your car, you saying no, but I still take it out anyway.

      They have a lot of enemies out there that are plotting. You can't be on top forever.
      An agreement can be reached, Apple do not want to pay anything that is why Apple stole it.
      You ask me for my car, there is a price for it. If you don't want to pay find someone else's, it does not give you permission to steal it. Apple have lots of enemy not just because they are big, they are part to blame for many of the hate.
    1. zrevai's Avatar
      zrevai -
      Except that Apple purchased the 3G chips from Infineon so in order to sell those chips shouldn't Infineon have already paid the patent licensing fee?? Or does Motorola get to charge a fee for including a 3G chip in a device??