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  • Apple Claims Motorola Charged 12 Times Going Rate for Certain Patents


    In a recently filing that was lodged with the U.S. Court of Appeals for the Federal Circuit this week, Apple claims Google’s Motorola demanded unreasonable rates for tech based on deemed standard essential patents. Some of the fees were said to be 12 times higher than what Motorola had charged other companies. The CAFC filing, an opening brief from Apple regarding the dismissal of FRAND-related action from Wisconsin, is one of the first developments in the case likely to be heard by the court in early 2014 according to Florian Mueller of FOSS Patents.

    Motorola is currently appealing the partial summary judgment win for Apple over a FRAND contract and antitrust case leveled in Wisconsin, which was ultimately dismissed without prejudice in 2012 by Judge Barbara Crabb. A portion of Apple’s brief states that Motorola:

    …demand[ed] that Apple take a license at a rate that was more than 12 times what Motorola was charging other licensees for the same technology--a rate that was unfair, unreasonable, and decidedly discriminatory.
    At the time, Motorola was asking Apple for 2.25%, a rate unsupported by previous deals. According to Apple, the demand would represent approximately $12 per iPhone, or “12 times what Apple was already paying to license Motorola’s SEPs,” possibly referencing the indirect licensing of technology used in baseband chips and other components. On this point, Apple notes that a previous proposal to pay Motorola $1 per iPhone was meant to “buy litigation peace and move on.” The company says Google’s leveraging of Motorola’s patents has been wholly unsuccessful.

    Apple mentioned the following in its opening brief:

    Motorola has sued Apple in various forums for infringement of eight SEPs (presumably, its eight strongest SEPs) and is batting 0-for-8 in establishing liability in U.S. actions.
    Based on this information, Mueller pointed out that Apple’s proposal was perhaps a little unreasonable, especially considering Motorola’s litigation track record. Barring this deal, Apple wants Motorola to offer a FRAND rate, a bone of contention that has so far been largely avoided due to the possible negative repercussions of a court rate-setting decision.

    Although a hearing date hasn’t been set for the Wisconsin appeal, Apple is scheduled to begin another CAFC hearing as part of a cross-appeal with Motorola. This hearing, which is set for September 11, is in regard to Judge Richard Posner’s dismissal of a patent infringement case in 2012.

    Source: FOSS Patents, Scribd
    This article was originally published in forum thread: Apple Claims Motorola Charged 12 Times Going Rate for Certain Patents started by Akshay Masand View original post
    Comments 5 Comments
    1. Feanor64's Avatar
      Feanor64 -
      Big corporations playing their games
    1. jOnGarrett's Avatar
      jOnGarrett -
      lmfao as apple is currently trying to extort Samsung at $40 per phone for trivial patents--and crying over having their products banned in a lawsuit they lost to Samsung.
    1. MCleveland89's Avatar
      MCleveland89 -
      So, Apple is complaining about someone charging too much?
    1. smith01's Avatar
      smith01 -
      Apple having another cry. The courts should fine Apple for every lawsuit they start.
      If Motorola own the patent shouldn't they choose who pays what? Its theirs so go have a cry Apple and pay up. You made billions from a lawsuit from Samsung so you can afford it.
    1. Perceptum's Avatar
      Perceptum -
      Quote Originally Posted by smith01 View Post
      Apple having another cry. The courts should fine Apple for every lawsuit they start.
      If Motorola own the patent shouldn't they choose who pays what? Its theirs so go have a cry Apple and pay up. You made billions from a lawsuit from Samsung so you can afford it.
      And if they were allowed to, then prices would go up, innovation would go down, and you would be complaining about the high prices and low innovation.

      Quote Originally Posted by Feanor64 View Post
      Big corporations playing their games
      Unfortunately, small and medium sized businesses also play these game. But on a less grand scale.