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Ahead of a contract trial due to happen next week, Apple has declared that it’s willing to pay Motorola for a license to its wireless patents. It is, however, only prepared to stump up less than £1 per iPhone.
FOSS Patents reports that Apple’s lawyers made the declaration, which covers essential wireless patents used for cellular and Wi-Fi standards, yesterday. From the court filing:
“Apple’s actions in both licensing and litigation have matched its words in public. Because of that, Apple is willing to pay the FRAND [(fair, reasonable, and non-discriminatory)] rate this Court sets going forward if that rate is less than or equal to $1 per unit for its worldwide sales of covered products… This is the rate that Apple believes is appropriate in these circumstances, a rate that flows from Apple’s articulated FRAND framework, and the only rate that can be supported by experts at this trial. To the extent the Court sets the rate higher than $1 per unit, Apple reserves the right to exhaust all appeals and also reserves the right available to any party offered a license: the right to refuse and proceed to further infringement litigation.”
According to FOSS patents, Apple’s position is strong — especially given that Motorola’s one expert witness is no longer able to “testify about a particular rate at trial” because the court held that he “did not offer any opinion about what particular rate or range or rates would constitute a FRAND royalty”. Dang.
Apple’s less-than-£1 position stands a fair chance of sticking then, which could prove a massive kick in the teeth to Moto. Let’s wait and see. [FOSS Patents]
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I wonder whether Apple has done what Oracle did and hire Herr Mueller as a consultant…
Isn’t this contempt of court? Apple is saying before the trial begins that they are only willing to pay $1 per unit. Isn’t that a matter for the court to decide.
It is more attempted manipulation of court rather than contempt. In the US, as in many countries judges’ careers are progressed partly on their record of lack of successful appeals against their rulings so Apple are basically telling the judge, if we’re guilty make sure you only make us pay <$1, otherwise we'll try and torch your career by taking your judgement to every single appeal and pursuing further litigation.
So bullying would be a better word then?
Pretty much, and I believe that in a case or two, the right to appeal has been denied on that basis.
So this boils down to:
“We are willing to pay what the courts say we have to pay as long as it’s the price we want to pay”
Fuck it, I’m gonna see how that works in my local Apple store.
I really really hope that apple gets a kick in the teeth and a massive percentage. I know that that is very very unlikely but god do they deserve it for the way they have acted recently, either that or i hope a large proportion of the public get turned off by them and look else where.
Peanuts compared to what Apple want for licensing their stuff – http://www.groklaw.net/article.php?story=20121022054044954
Key telecoms patents – $1
Design patents for a tablet* – $40
Apple’s arrogance and the USPTO stupidity – Priceless
* based on any number of existing things (TV?) shrunken down exchanging a screen for a touchscreen.
I’m glad the UK courts are sticking it to them at least.
Is this the one where Motorola have basically gone and patented a protocol? In which case, good on Apple!
Or if I’ve got my wires crossed and it isn’t the above, Apple should pay the rate that they charge on their own patents…
Would you please stop quoting that paid shill at FOSS Patents? He’s wrong more times than he is right, and you never know if he’s saying something because he thinks it or because he’s being paid to say it.
Apple yet again displaying their ignorance of the FRAND process which all the other manufacturers had been participating in for 20 years without any major issues. They are supposed to negotiate with the patent holder, not issue unilateral demands. This is how the case ended up before the court in the first place: they issued Moto with an ultimatum and refused to negotiate, preferring to take it to court instead. My guess? The court will ask what everyone else is paying then make Apple pay that.
If you’re going to change the currency at least do the conversion, it’s around 60p per unit or less.
as long as apple are willing to license their patent portfolio for the same price I would say that is a fair price.
Too right
To be fair, considering the number of iPhones out there thats a hell of a lot of money, really…