Apple has done something rare; it says that it will license Motorola’s standard-essential patents. But, only for the price it has set. Apple just told a Wisconsin court that it will begin paying Motorola immediately if it sets a FRAND rate at, or lower than, $1 per iPhone. However, according to the report over at FOSS Patents, if the court decides otherwise and sets the rate higher than what Apple has offered, Apple will appeal. This is part of Apple’s argument:
Motorola cannot offer evidence at this trial that the rate should be higher than $1 per phone, but to the extent the Court sets the rate higher than $1 per unit, Apple reserves the right to exhaust all appeals and needs also to reserve the right available to any party offered a license: the right to refuse and proceed to further infringement litigation. Make no mistake, that is not an outcome Apple desires.
This rate, AppleInsider points out, is much lower than the 2.25% of all iPhone sales that Motorola requested. Experts have said they don’t expect Motorola will win with its request, but I guess it believed it was worth a shot. I’m sure more news will be coming on this, so check back with Today’s iPhone to see how this plays out.
What do you think? Is Apple’s proposition too small? Should it have to pay what Motorola requested? Let us know in the comments.