Apple offers US$1 per device to Motorola ahead of patent trial

Macworld Australia Staff
1 November, 2012
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Apple has informed a patent trial in the US that it is willing to pay Motorola Mobility a licence fee of US$1 per iOS device – and no more – for its standard-essential wireless patents.

According to FOSS Patents, “If the court sets a FRAND (fair, reasonable and non-discriminatory) rate at or below $1, Apple will take a license and start to pay right away. Otherwise Apple will appeal the decision and exhaust all of its legal options before Google gets anything.”

The move, declared by Apple’s lawyers in response to a Motorola motion, comes five days out from the beginning of the trial in Wisconsin and demonstrates that Apple wishes to show residing Judge Crabb and the court it is willing to resolve ongoing patent disputes.

“Apple is willing to pay the FRAND 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,” Apple’s filing reads. “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”.

In August, Judge Crabb ruled that Motorola must uphold its commitment to license video streaming and Wi-Fi patents to Apple, however Motorola asked for 2.25 percent of Apple’s net sales of iOS products in return. An offer Apple rejected.

Apple is also seeking a global Motorola FRAND rate from the trial, which begins on Monday.


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