Motorola seeks 2.25% of Apple iPhone sales for use of patents

Motorola seeks 2.25% of Apple iPhone sales for use of patents
A legal brief written by Apple's attorneys in Germany, trying to get Motorola Mobility to show proof of a cross-licensing agreement between it and Qualcomm, contains some interesting information according to FOSS Patents. In the brief, Apple claims that Motorola is seeking a royalty fee of 2.25% of Apple iPhone sales in return for use of Motorola Mobility's standard-essential patents. The context of the offer, though, is about just one patent which is the one that forced Apple to remove certain products from its German online store.

Apple wants to show the court by using the Qualcomm-Motorola agreement that the latter's request is too high. Additionally, Apple's lawyers in Germany have started asking the court to grant Discovery motions to allow it to get information from other manufacturers proving the unFRANDness of Motorola Mobility's royalty demand. So far, motions were granted for Apple to contact LG, HTC, Nokia and Ericsson and seeks any information about deals or licensing agreements that each entered into relating to Intellectual Property from Motorola Mobility.

If Motorola Mobility were to get what it is asking for, that would work out to about $15 for each 16GB Apple iPhone 4S sold, $17 for each 32GB version and $21 for each 64GB variant, based on the unsubsidized price of the models. Considering that 93 million Apple iPhones were sold last year (although not all of those were the iPhone 4S) and it would be quite an impressive payday for Motorola Mobility. Which is why Apple's attorneys are working so hard to prove the unreasonableness of Motorola Mobility's demand.

source: FOSS Patents

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33 Comments

1. dirtydirty00

Posts: 428; Member since: Jan 21, 2011

TAKE THAT APPLE!

26. quakan

Posts: 1418; Member since: Mar 02, 2011

Qualcomm has a license with Motorola, Apple buys components from Qualcomm, Motorola wants to ignore the deals with Qualcomm and charge Apple a 2nd time and at a higher fee than it expects from anyone else, this is against FRAND since the patents are part of an industry. Motorola might want to check themselves before they find themselves in violation of FRAND licensing.

2. theBankRobber

Posts: 682; Member since: Sep 22, 2011

Hell if Microsoft can do it to Android OEM's then so can Motorola do the same to Apple. Apple tries so hard to stop Samsung but wants to play the 'Im a Victim card' , Motorola will be making bank if this comes true.

33. InspectorGadget80 unregistered

And Motorola SHOULD TAKE MONEY away from M$ also.

3. darac

Posts: 2156; Member since: Oct 17, 2011

this translates into about 590 million bucks paycheck. and guess how much apple, the same one claiming that's too much, has piled up in their cash reserves? almost HUNDRED BILLION.

5. Doakie

Posts: 2478; Member since: May 06, 2009

Yep Apple is a greedy corporation no doubt. They'd shoot themselves in the face before settling a lawsuit. Because they don't want to set a precedent that they'll settle.

7. ilia1986 unregistered

Funny thing is that Apple HAS settled on a lot of stuff before - you know - like when Steve Jobs announced that Internet Explorer would be the DEFAULT browser for Mac OS. Oh - btw after that he also said that "Apple believes in choice". ROFLOLMAO

12. remixfa

Posts: 14605; Member since: Dec 19, 2008

oh, thats not completely true. Nokia had them over a barrel and milked Apple for billions in initial payments, royalties for each device sold, and so forth. That WAS the settlement. lol. Apple is a bunch of thieves and crooks that sue everyone else to keep the light off of them.

4. Bluesky02

Posts: 1439; Member since: Dec 05, 2011

Got a bad feeling that this may turn against moto

6. Doakie

Posts: 2478; Member since: May 06, 2009

Apple always seems to get their way. I'm sure Apple will convince the court that they own the patent and Motorola will have to pony up the dough.

8. Droid_X_Doug

Posts: 5993; Member since: Dec 22, 2010

If the 2.25% is in line with other licensing transactions, Apple better start exercising the check signing muscles. They had their opportunity to invalidate the Moto patent and lost. The next step is to figure out how many zeros follow the positive integer value on the royalty check to Moto. At least Steve won't have to sign the check. He likely would have taken poison before signing a royalty check to a subsidiary of the company that produces Android.

9. biophone

Posts: 1994; Member since: Jun 15, 2011

24. quakan

Posts: 1418; Member since: Mar 02, 2011

that was quickly overturned according to Engadget: Update 3: And just like that, the BBC is reporting that Apple's exhortations have been heard, and the ban has been lifted. Details are few, but Cupertino had this to say about this latest turn of events: "All iPad and iPhone models will be back on sale through Apple's online store in Germany shortly."

28. biophone

Posts: 1994; Member since: Jun 15, 2011

That is what macrumors seems to have been saying as well. Not was PA is saying so I would like an UPDATE.

10. Tmachaveli

Posts: 425; Member since: Apr 01, 2011

Ha ha pay that cash fool

11. rcwfox2002

Posts: 41; Member since: Dec 20, 2011

Motorola can charge who ever they want for their patents it's a free market something Apple needs to learn

14. Droid_X_Doug

Posts: 5993; Member since: Dec 22, 2010

Um, not quite. If Moto has licensed the same patent to say, HTC for 1% of sales, Apple has a strong objection to being charged a royalty of 2.25%. They still are looking at having to write a check at the 1% level. So unless the discovery turns up something different in the way of royalties other companies are paying, Apple will be writing a royalty check to Moto (and by extension - Google) at the rate of 2.25%....

20. dsDoan

Posts: 235; Member since: Dec 28, 2011

The amount that HTC pays has nothing to do with the amount that any other company pays. It depends on what each company is doing with the technology in question.

22. Droid_X_Doug

Posts: 5993; Member since: Dec 22, 2010

Well, that depends on a judge agreeing with the argument that Apple is barely using the infringed patent, doesn't it. It is going to be pretty hard to successfully argue that Apple is barely using the infringed patent, compared to say, HTC. Especially given the similarity in implemented functionality between HTC and Apple.

13. jove39

Posts: 2145; Member since: Oct 18, 2011

I am glad for Motorola :)

15. ivanko34

Posts: 617; Member since: Sep 04, 2011

thats cool all ifans are going to give money to the android team !!!

17. biophone

Posts: 1994; Member since: Jun 15, 2011

Ugh. I'm pretty sure its just in germany and it wouldn't even be alot.

16. InspectorGadget80 unregistered

Thank goodness for Motorola. Glad THEY BAN APPLE. NOW they have to see what its like TO be BAN! Score another point for Motorola!

21. dsDoan

Posts: 235; Member since: Dec 28, 2011

They didn't "ban" Apple. Apple had to take a few products off the online web site, but they are still selling those products in Apple stores and retailers.

25. quakan

Posts: 1418; Member since: Mar 02, 2011

Ummmmmm, no. That ban was lifted: Update 3: And just like that, the BBC is reporting that Apple's exhortations have been heard, and the ban has been lifted. Details are few, but Cupertino had this to say about this latest turn of events: "All iPad and iPhone models will be back on sale through Apple's online store in Germany shortly."-Engadget Point Apple.

27. Droid_X_Doug

Posts: 5993; Member since: Dec 22, 2010

Even if a sales ban is lifted, that doesn't mean that Apple is not going to have to pay royalties. The new fight is over what the number should be, not whether Apple will have to pay. Point Moto.

29. biophone

Posts: 1994; Member since: Jun 15, 2011

Well because of frand it shouldn't be to much. Point lawyers.

30. Droid_X_Doug

Posts: 5993; Member since: Dec 22, 2010

And where is the fraud?

31. quakan

Posts: 1418; Member since: Mar 02, 2011

not fraud, FRAND...Fair, Reasonable and Non-Discriminatory

32. quakan

Posts: 1418; Member since: Mar 02, 2011

Fat chance...FRAND is in Apple's favor.

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