Apple offers up to $1 per device for Motorola Mobility patents

The two are due in a Wisconsin court next week

Apple has offered to pay Google's Motorola Mobility unit up to one dollar per device for a license to its patents covering cellular and Wi-Fi technologies.

Apple's offer, disclosed in a filing to the U.S. District Court for the Western District of Wisconsin in Madison, comes five days before a trial is due to begin that centers on the issue of patent licensing.

During the trial, the two companies are expected to argue over licensing rates.

The patents in question are considered vital to the UMTS, GPRS, GSM and 802.11 standards in which they are used, so Motorola Mobility is required to license them to competitors on "fair, reasonable, and non-discriminatory terms," often referred to by the acronym FRAND.

Motorola Mobility is arguing for a royalty payment of 2.25 percent on each device.

"Apple would be willing to pay a Court-ordered FRAND rate of less than or equal to $1 per covered product on the going-forward basis," it said in the filing. "This is the rate that Apple believes is appropriate in these circumstances for Motorola's portfolio of cellular and WiFi essential patents."

Apple said that if the court orders it to pay a rate higher than $1 per device, it would pursue all possible appeals.

"Make no mistake, that is not an outcome Apple desires," it said of the possibility of an appeal and further litigation. "But if the Court were to set, for example, the rate Motorola is seeking, that would amount to billions of dollars per year. That is orders of magnitude more than Apple is paying for even substantially larger standards-essential patent portfolios."

Apple said if it had to pay the Motorola Mobility rate, the total cost over several years would be larger than the $12.5 billion acquisition cost paid by Google, which bought Motorola Mobility in May.

"In such circumstances, Apple may need Motorola to demonstrate that its declared essential patents are in fact essential patents and worth that amount of money, a hurdle Motorola has thus far been unable to clear with what are presumably its best patents," it said.

Martyn Williams covers mobile telecoms, Silicon Valley and general technology breaking news for The IDG News Service. Follow Martyn on Twitter at @martyn_williams. Martyn's e-mail address is martyn_williams@idg.com

Join the Good Gear Guide newsletter!

Error: Please check your email address.

Tags Appletelecommunication3gintellectual propertypatentCivil lawsuitslegalMotorola Mobilitybroadband

Our Back to Business guide highlights the best products for you to boost your productivity at home, on the road, at the office, or in the classroom.

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Martyn Williams

IDG News Service
Show Comments

Essentials

Microsoft L5V-00027 Sculpt Ergonomic Keyboard Desktop

Learn more >

Lexar® JumpDrive® S57 USB 3.0 flash drive

Learn more >

Mobile

Lexar® JumpDrive® S45 USB 3.0 flash drive 

Learn more >

Exec

Lexar® JumpDrive® C20c USB Type-C flash drive 

Learn more >

Lexar® Professional 1800x microSDHC™/microSDXC™ UHS-II cards 

Learn more >

Audio-Technica ATH-ANC70 Noise Cancelling Headphones

Learn more >

HD Pan/Tilt Wi-Fi Camera with Night Vision NC450

Learn more >

Budget

Back To Business Guide

Click for more ›

Most Popular Reviews

Latest News Articles

Resources

PCW Evaluation Team

Michael Hargreaves

Windows 10 for Business / Dell XPS 13

I’d happily recommend this touchscreen laptop and Windows 10 as a great way to get serious work done at a desk or on the road.

Aysha Strobbe

Windows 10 / HP Spectre x360

Ultimately, I think the Windows 10 environment is excellent for me as it caters for so many different uses. The inclusion of the Xbox app is also great for when you need some downtime too!

Mark Escubio

Windows 10 / Lenovo Yoga 910

For me, the Xbox Play Anywhere is a great new feature as it allows you to play your current Xbox games with higher resolutions and better graphics without forking out extra cash for another copy. Although available titles are still scarce, but I’m sure it will grow in time.

Kathy Cassidy

STYLISTIC Q702

First impression on unpacking the Q702 test unit was the solid feel and clean, minimalist styling.

Anthony Grifoni

STYLISTIC Q572

For work use, Microsoft Word and Excel programs pre-installed on the device are adequate for preparing short documents.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?