Motorola could be on the hook for $16.2 billion in patent dispute with Apple

Motorola could be on the hook for $16.2 billion in patent dispute with Apple
Motorola and Apple were in court Friday for a case in which the former is suing the Cupertino based company. Motorola alleges that Apple's iCloud infringes on patents for existing technology used for synchronization. During the hearing, Apple estimated that if Motorola seeks an preliminary injunction against iCloud now, it would have to post bond of $2.7 billion a year to cover Apple's losses in case a ban gets overturned. Considering that Florian Mueller of FOSS Patents was told by a Motorola attorney that the case could last until 2018, Motorola could be on the hook for as much as $16.2 billion to Apple.

While earlier reports said that it was likely that Motorola would win at least one of its German suits, Apple does have the right to set a bond figure to get damages in case it does win in appeal, a process that could take years. In Germany, those who receive a preliminary injunction against a product and/or company, can have it enforced immediately, even before appeal. However, as Apple pointed out in its bond request, if the preliminary injunction is reversed at the end of the process, the company whose product was banned could seek damages. In Germany, the end of the process means that the ruling can no longer be appealed, or that the next higher court refuses to hear the case.

To protect its interest, Apple could seek a bond from Motorola that originally was thought to be $2.7 billion for the entire length of the appeal process. Apple has now clarified this to be an annual figure that would be multiplied by the number of years that the case could last. Apple might have to prove to the courts that the product in question, in this case iCloud, generates revenue of $2.7 billion annually in Germany. A hearing is scheduled for February 3, 2012, when the court could reveal its decision on how much Apple's bond is worth.

Sometimes a patent holder will go along with posting a bond in order to have leverage against its opponent to work out a settlement. Until the court rules on February 3rd, there is no reason for Motorola to do anything. 

source: FossPatents via AppleInsider

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64 Comments

53. ivanko34

Posts: 617; Member since: Sep 04, 2011

So obvious apple spends more on lawyer than R& This story is just only a lawyers trick to frighten Motorola

64. hepresearch unregistered

it would be a lawyers trick... except that Apple has shown that they have the teeth to back it up.

45. naga.appani

Posts: 36; Member since: Nov 26, 2011

Apple will not exist by then and Motorola becomes a Googorola.. :P

44. naga.appani

Posts: 36; Member since: Nov 26, 2011

Apple will not exist by then and Motorols becomes a Googorola.. :P

50. SlimSoulja86

Posts: 660; Member since: Nov 03, 2011

LOL, hehehe

37. networkdood

Posts: 6330; Member since: Mar 31, 2010

YouTube has a lot of interesting videos of when Steve Jobs introduces Mac or of the WOZ going through some APPLE history. People do seem to worship Jobs and APPLE. Is it sadistic or ludicrous?

39. hepresearch unregistered

... is there an all-of-the-above option?

34. 530gemini

Posts: 2198; Member since: Sep 09, 2010

It's funny to see android fanboys play attorney, hahahahaha.

36. networkdood

Posts: 6330; Member since: Mar 31, 2010

no one, not even yourself, really knows what goes on with this litigation - to say that APPLE is not over doing the litigation is preposterous.

55. geedup

Posts: 74; Member since: Dec 01, 2011

Apple has won quite a few of their cases. In this case Motorola is the aggressor. Anyway if they were over doing it a They wouldn't be winning cases.

60. hepresearch unregistered

1) The Truth: consumers everywhere will pay for the litigation between Apple and other OEMs no matter what. The loser(s) will raise product prices due to having to cover the costs of the litigation (since they will, no doubt, bear the financial burden of the losing outcomes), and the winner(s) will raise product prices to prevent scarcity as demand for their now-suddenly-more-affordable product rises, and they must balance that demand through either pricing or supply increases. 2) The Truth: the most consistent winner(s) of the litigation series will drive the loser(s) into the ground as the price of products go up. Losing OEMs cover their new costs of settlement or licensing, and winning OEMs make that much more profit since they can raise prices without having to cover additional litigation costs (traditionally covered by the losing OEMs), all while remaining competitive with the value offered by the products of their competitors. Thus, the losing OEMs become more expensive while delivering less and making less profit, while the winning OEMs make lots more profit and do not need to deliver any more than their competitors. The consistent winner ends up with all the profits eventually. Actual economic competition comes to an end as a result.

32. networkdood

Posts: 6330; Member since: Mar 31, 2010

http://www.youtube.com/watch?vā€‹=0jUS1H8cCiA XDA TV - funny stuff Steve Jobs did not invent, he persuaded you to buy what was already invented and persuaded the masses to overspend for it. Steve Jobs would have made a great evangelist.

49. SlimSoulja86

Posts: 660; Member since: Nov 03, 2011

if i could, I would give this 1 000 000 000 000 000 000 000 000 thumbs up, lol

52. steelicon

Posts: 318; Member since: Apr 02, 2011

20. InspectorGadget80 unregistered

Motorola sbould take HALF OF APPLE'S fortune in damages "just saying". Motorola is one of my favortie phone manufacturer & I still have my Atrix. And now its Apple's turn TOO SUFFER.

26. androidsbiggestfan

Posts: 76; Member since: Aug 09, 2011

Don't worry, Apple will fail soon enough, their following Blackberry's tracks from a few years ago. Hot booming phone flying off the shelves, then a lack of innovation and then a downfall. Think about it!

28. hepresearch unregistered

... unless Apple can convince the majority of consumers that the iOS devices are already perfect, and that innovation is no longer necessary. They could do what RIM and Nokia did before them, but without any fall from grace afterward as a consequence... fortunately, I do not think people are dumb enough to fall for that kind of thing for too long.

31. networkdood

Posts: 6330; Member since: Mar 31, 2010

lol, 4 million fell for it over the first weekend the iphone 4S was sold.

40. hepresearch unregistered

Well, I am trying to give them the benefit of the doubt, and assume that insufficient time has passed for the majority of them to realize what is going on... I am hoping that the iAddiction is not as hard to break as a nicotine addiction...

19. InspectorGadget80 unregistered

Motorola sbould take HALF IF APPLE'S fortune in damages "just saying". Motorola is one of my favortie phone manufacturer & I still have my Atrix. And now its Apple's turn TOO SUFFER.

17. hepresearch unregistered

When Apple sues another company, and wins, they get lots of money (case-in-point: HTC). When Apple sues another company, and loses, they settle for a pittance (case-in-point: Nokia). When another company sues Apple, either Apple will sue them for way more than they are being sued for (case-in-point: Nokia), or they have to pay Apple a freakin ton of money until they win (case-in-point: Motorola). If they lose, Apple eats the deposit for breakfast, and then counter-sues for even more money (case-in-point: Samsung). Somewhere, an Apple attorney is flipping a coin... Heads - I win! Tails - you lose!

15. networkdood

Posts: 6330; Member since: Mar 31, 2010

Steve Jobs stole plenty from those before him...

16. tacohunter

Posts: 408; Member since: Nov 06, 2011

You can't relativate.

30. networkdood

Posts: 6330; Member since: Mar 31, 2010

Relativate?

38. hepresearch unregistered

Relativate (rel-u-tiv-At); a verb. 1) to relate to a skewed perception in the mind of one who wishes to intentionally argue using familiar semantics applied to their own relative definitions of concepts in a common argument. 2) to understand the actual meaning of the argument of a fellow debater when the debater in question does not wish to be completely understood. 3) to be able to see through an intended connotation in a debate by relating to the relative definition secretly used by the opposition, often to their great surprise and alarm. As used in a sentence: So far he has been unable to relativate, which is great for us! As used in a sentence: Please understand that I will make this clear enough for you that you need not try to relativate... ahem! I mean, relate. As used in a sentence: You cannot relativate! At least, I do not want you to relativate, because if you did, my secret would be out and my fellow iFans would be highly disappointed that you have any ability to understand what we are really talking about right in front of your face... and then I would feel really dumb, and start to publicly blush in embarrassment. =8-D

13. lubba

Posts: 1313; Member since: Jan 17, 2011

Without steve jobs vision of the iphone, the cell tech industry would not have boomed as it has right now. Including the ipod which he first revolutionized the portable music world and last the ipad which set the tab into full swing. Now i dont know who copied who but steve out right believes that google copied or stole apples ideas and set to nuke them up. $2.7 billion per year till 2018, that'll nuke motorola and google to the s**t hole. Good luck!

48. SlimSoulja86

Posts: 660; Member since: Nov 03, 2011

jacko, so true, he didnt invent the smartphone, ipod, itunes and macs. he took the excising products and persuade people to pay enormous amount of money for them, the only praise I'll give Steve Jobs is how he persuade people to buy his products, cos "in my own opinion" Americans thrive on popularity and what teens like and don't like, and from what I've seen it's very easy to persuade and American teen into what is perceived to be popular and cool [and once they think something is cool, is very hard to convince them otherwise, which explains the iPhone popularity irrespective of the so called iPhone killer, and they are many of them out there]. CONCLUSION: Steve was gr8 @ persuading people, and making them pay more for something that should cost less and convinced them [including me with my iPhone] that when you move around or show off your Apple iDevice, you'll look cool and rich. JUST MY OPiNiON, all iFans are so gonna..... nevermind. {i guess everything with the "i" sells hay. hehehehe! haters on the left pls}

25. VZWuser76

Posts: 4974; Member since: Mar 04, 2010

There is no denying that, but it's not like it never would've happened without him either. The world had technology booms before Jobs, and it will have booms after him as well. Companies have come out with inventions before, followed by other companies that bring their own version of said invention to compete with the original. The difference is most of the original companies didn't sue each other. Panasonic came out with the first modern flat screen tv. Do you see them suing LG, Samsung, Toshiba, Sony, & Sharp. Do you see laptop companies suing each other because their competitors' products look similar to theirs? No. But, going by the story yesterday on this site on Apple's suggestions for Samsung to avoid further litigation, apparently the rectangle (rounded or not), the color black, a centered screen, and a horizontal earpiece are property of Apple. Can you imagine the world we'd be in if car companies had done this. Ford would be the only company to have a four wheeled black car. Oldsmobile would be the only company to have the modern overhead valve V8, automatic transmission, and fromt wheel drive. The difference there was, if the competition came out with something selling better, they got back to work and tried to come up with a way to beat them in sales. They didn't sue for money or try to have the competition banned. But that hard work is what drove innovation, constantly keeping companies motivated to beat their competition.

29. hepresearch unregistered

... and, in your perfect world, everyone has an iPhone. What a boring utopia...

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