NEWS / SMARTPHONES

Apple may have to give 2.25% royalty to Motorola to end dispute

07 Feb, 2012, 1:53 pm IST | by Anuradha Shetty | Smartphones

This comes in as the latest and a startling update to the ongoing patent tussle between Apple and Motorola Mobility. Just a couple of days ago, there were reports about Apple products being pulled out of online stores in Germany, after an injunction against Motorola got rejected. This bit of news was followed by a confirmation from Apple yesterday, stating that Apple would resume with the sales, soon. However, the two have been on with the battle. Now, Foss Patents confirms that Motorola Mobility has agreed to end the dispute, albeit with some demands.

 

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According to reports, Motorola Mobility has agreed to license their patents to Apple, under the condition that Apple pay them a royalty of 2.25 percent on all their sales. Explaining the specifics, the post states, "I assume this relates to Apple's sales and to all of MMI's standard-essential patents, though the context is only one patent (the one over which Motorola has already forced Apple, temporarily, to remove certain products from its German online store. Assuming in Motorola's favor that this was a license to all standard-essential wireless patents, the amount still appears excessive to me given how many companies hold patents on such standards and what royalty rate this would lead to in the aggregate." 

 

A clear outcome of this case is still awaited, but, it will surely be a development everyone's going to be on the lookout for. Needless to add, if Apple agrees to shell out that amount to Motorola on all their sales, Motorola is surely going to laugh its way to the bank, considering how well some of Apple's key products are faring. 

Tags: Motorola vs Apple , Motorola vs Apple lawsuit , lawsuit , Germany , Apple Sales International , Ireland , iPhone , iPhone 3G , iPhone 3GS , iPhone 4 , iPad 3G , iPad2 3G , bond , Motorola , Apple , cellular communications patent , patent , patent infringment , royalty on sales , royalty , demands

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