Motorola asking for 2.25 percent of Apple sales in return for patent licensing dealAlex Wagner - Editorial Director of News and Content
Much of the legal news we've heard over the past month or so has involved Apple and Samsung, but lately the battle between Apple and Motorola has been making headlines. The latest bit of news out of the tiff between the two companies comes from some court documents dug up by FOSS Patents that reveal the amount of money that Motorola is seeking in order to license standard-essential patents. According to the documents, Motorola is seeking royalties of 2.25 percent on Apple sales in exchange for the patent licenses, which works out to be around $15 per iPhone (that figure is for an unlocked 16GB 4S). FOSS Patents' Florian Mueller notes that the patent mentioned in the documents is the same one that forced Apple to temporarily remove some of its devices from its German online store, but Mueller assumes that the licensing deal that Motorola is seeking would cover all of its standards-essential patents. Apple believes that the 2.25 percent cut of sales that Motorola is asking doesn't fit within the fair, reasonable and non-discriminatory (FRAND) terms that are necessary for the standards-essential patents.
Obviously earning 2.25 percent of Apple sales would lead to a pretty hefty chunk of change for Motorola. Whether or not the company will actually get that amount remains to be seen, but Mueller sees the percentage that Motorola is seeking as a tad excessive. Now we wait to see if the courts agree or not. We'll be sure to pass along more details on this situation and all of the other legal happenings between Apple, Motorola, Samsung and others, so stay tuned.