Expert: Apple could get $10 for each Android device sold

Expert: Apple could get $10 for each Android device sold
Talking with Bloomberg, Kevin Rivette, the managing partner at intellectual property firm 3LP Advisors LLC says that Apple stands to profit greatly if it were to license its patents to Android manufacturers. Rivette says that Apple were to license its patents to those producing Android devices instead of suing them, the Cupertino based firm could be in line to receive $10 for each device sold that is powered by Google's open source OS. Currently, Microsoft receives $5 in licensing payments for each HTC produced Android device.

Taking the licensing approach, Microsoft has deals worked out with HTC, Samsung, ACER and Viewtronics while still fighting Motorola Mobility and Barnes and Noble in court.

To license its patents, Apple would have to go against the decision made by its late co-founder Steve Jobs. Jobs wanted to go to war against Android, which he considered a stolen product. Before Jobs died, he told biographer Walter Isaacson that he had no intention of licensing Apple patents to Android manufacturers. This hard line, essentially an emotional decision by Jobs, could hurt Apple's finances as those producing Android devices are now working around the patents in question. That would eliminate the lawsuits and also prevent Apple from receiving any royalties.

For example, earlier in December the ITC ruled that HTC had violated an Apple patent relating to data detectors. The next day, HTC said it had a way to work around Apple's patent which made the legal battle moot and a legal ruling which onm its face would seem to harm HTC is actually worthless. At the same time, in Germany, Samsung re-designed the Samsung GALAXY Tab 10.1 tablet and the new Galaxy Tab 10.1N should help the Korean firm avoid a ban on the tablet. In both cases, had Apple simply sat down and worked out a licensing agreement with HTC and Samsung, it could have produced some hefty revenue for the company. Instead, Apple might have to settle for nothing.

source:Bloomberg via AndroidInsider

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15 Comments

1. ghost__uwi

Posts: 175; Member since: Nov 28, 2011

Hmmmm point

3. Phullofphil

Posts: 1732; Member since: Feb 10, 2009

Pretty simple point. Apple could be messing up from an ego problem or not time will tell

2. gallitoking

Posts: 4721; Member since: May 17, 2011

I will go on a limb and agree Apple could make more money that way than suing... but lets see what happens....

5. JeffdaBeat unregistered

I don't think Apple has any problem making money. People still line up for every new iteration of their products.

4. Johnny_Mnemonic

Posts: 240; Member since: Oct 05, 2011

Thats what happens to greedy companies

6. Doakie

Posts: 2456; Member since: May 06, 2009

Umm. How does a refusal to license patents for any price not qualify as anti trust? Jerk wads.

7. ILikeBubbles

Posts: 525; Member since: Jan 17, 2011

OF COURSE! i hope no one's surprised. this is like someone bringing a giant delicious apple pie to a party because they're awesome then everyone saying that they're cheating and they owe them because one person used the same kind of apples, another person used the same kind of cinnamon, another person used the same brand nutmeg.. and then someone else just feels ripped off because everyone else is getting so much drama out of it. does anyone wonder why so many companies are assholes? i think this is a pretty decent example. One company comes out and tries to do something for the good of the consumer. GRANTED i'm sure google is making a decent amount on android but not really that much as their largest profit is still from searching.. so why is it now that everyone needs a piece of this delicoius apple pie that google brought to the party? $10 for apple, $10 for microsoft... it's not Google's fault why smartphones are so expensive and honestly i'm hoping that soon Google will pull out all the stops and show what kind of power they have because i see Apple as the kid who just got the red ryder rifle for christmas and is going around shooting everyone in the face with it because they can. Google i'm hoping is the ex-marine sharpshooter. granted i'm 100% positive apple is more familiar with the red tape game but i can dream can't i?

8. Stuntman

Posts: 843; Member since: Aug 01, 2011

It's up to Jobs to do what he wants with those patents. I'm not sure if he can really significantly reduce the sale of Android phones in the world with these law suits. He basically has to go country by country. Major phone manufacturers have the resources to deal with these law suits. Smaller manufacturers may not have the resources, but banning them would do little to impact the number of Androids. As much as I think Jobs would have loved nothing more than to be able to destroy Android completely. I don't think he can really make much of an impact to Android other than making a product that current Android users would like more than their Android devices. I don't think he really believes he can really make much of an impact to stop Android either. I think his dying words that is quoted in his book is simply spitting with his last breath.

9. Pdubb

Posts: 249; Member since: Aug 08, 2011

I'm not completely sure but wasn't Jobs pushed out of Apple long ago because of his emotions getting the best of him? He got caught up in what he thought was best and didn't make concessions and they ran him off. He came back stronger when he returned but this time there may be no white knight to save Apple if they run into the same problems. I wish them the best and hope it all works out we need the competition as consumers.

10. ivanko34

Posts: 617; Member since: Sep 04, 2011

Apple must pay for the ideas they have stollen on android

11. Lwazi_N

Posts: 205; Member since: Jun 23, 2011

Okay, I must admit, when I initially read the head of this post I thought "another Apple-biased source". But as I read the article it made sense- Apple stood to make tens millions off of Android per month, but since they hate competition, they will keep losing money. By now, Apple should have learned it is easy for Android manufacturers to come with workarounds of Apple patents, but Apple being Apple- the children of Jobs are still following in their father's backward footsteps.

12. Martine

Posts: 102; Member since: Oct 20, 2011

Not going to happen

13. roscuthiii

Posts: 2383; Member since: Jul 18, 2010

Why would anyone want to license Apple's patents? Apple got the few preliminary injunctions but for the most part those are overturned or able to be worked around. A few of their patents will probably even be invalidated. When a bully threatens you, its best to stand up to them rather then give them your lunch money day after day. Besides that, Apple doesn't really seem all that keen on licensing since it's competitors would remain in the market.

14. 530gemini

Posts: 2198; Member since: Sep 09, 2010

Now where are those fandroids that kept saying that Apple is all about making more money? Hmmmmm. I was right. Fandroids just say the wrong things and walk around pretending they haven't said anything, and move on to other articles saying more wrong things :)

15. jacko unregistered

ok ok ok let me get this right apple files for a patents and its pay money or banned samsung files for a patents the courts say u cant ban apple coz every phone needs to use that tech sounds like the judges are payed off to me

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