Motorola Demands 2.25% Of Apple’s Sales
Recently, Motorola got the sales of some iPhone models, banned in Germany. Apple appealed against the ban and got the ban lifted within hours. Motorola also won an injunction that has barred Apple from using its iCloud feature in Germany.
Now Motorola is out defeat Apple once again.
The question was raised by the media whether Motorola or Apple were being unreasonable in the licensing negotiations. At the moment, evidence shows Motorola’s demands as unreasonable.
Information released by FOSS patents suggested that Motorola’s 3G technologies’ Fair, Reasonable And Non-Discriminatory (FRAND) licensing offer to Apple that would end the current legal dispute between two tech giants involves Apple handing over a 2.25% share of Apple’s sales. At the moment, it is not clear whether this percentage is of all Apple revenues or a percentage of Apple’s 3G devices sales (Apple and Motorola have dispute over 3G technology).
Florian Mueller of FOSS patents described Motorola’s 2.25% request as “excessive,” especially concerning Apple’s latest quarterly earnings report. If the court forces Apple to pay the 2.25%, Apple will owe Motorola just over $2.1 billion out of the $93 billion in iPhone revenue since 2007. Apple successfully suspended the ban claiming that Motorola’s “deal” was anti-competitive. Currently, Apple is gathering information from other handset makers concerning their FRAND agreements with Motorola.
Apple also wants to know about Motorola’s relationship status with Google. If Google’s acquisition of Motorola is finalized, and Apple eventually has to pay 2.25% of something to Motorola, all of that money will go right into Google’s coffers. At the moment, all outcomes point to Apple paying Motorola something. The only variables are how much and if Google will eventually benefit.