Mar 06 AT 4:12 PM Anthony Domanico 42 Comments

Apple offers Samsung and Motorola licensing deals of $5 to $15 per unit to settle litigation

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It appears Apple is having a bit of a change of heart when it comes to the excessive amounts of litigation they’ve been unloading against Android handset makers lately.

According to a report in The Dow Jones, Apple has offered both Motorola Mobility and Samsung Electronics Co. a licensing deal ranging from $5 to $15 per device sold as a means of settling pending patent litigation with these companies around the world. The royalty fees represent 1 – 2.5% of device sales, and are on par with the fees Motorola is seeking to charge Apple (2.5%) for Apple’s violation of certain Motorola patents.

The licensing deal talks come in the midst of court victories on both sides, with Apple winning an injunction against HTC per an ITC ruling, as well as a victory against Motorola for devices that infringed upon one of Apple’s Slide to Unlock patent. Motorola has secured a victory or two against Apple as well, most recently against Apple’s iCloud and MobileMe push email for iOS devices, forcing Apple to shut down these services in Germany.

While we hope that Apple, Samsung, and Motorola can figure out some way to play nice and let the patent madness stop, we have a hard time believing we’ll see that vision become a reality. All parties involved seem to be bolstering their patent portfolios, and we’ll likely see Google venture into the lawsuit foray once they’ve secured Motorola’s patents in their acquisition of Motorola Mobility.

We’ll bring you all the patent news that’s fit to print as more information comes out. In the meantime, let’s get a discussion going in the comments. How crazy do you think all this patent litigation is? Will we ever see a revamped patent system in the U.S.?

Source: Nasdaq

Anthony loves all things technology, from hardware to apps and games. You can connect with him via Google+ or Twitter by clicking one of the fancy doo-dads above.

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  • spazby

    come on everyone, try to play nice

    • Jeff Pan

      $5-1$15 for Microsoft and $5-$15 for Apple. This is gonna hurt.

      Hope the manufactures don’t push these charges to the users!

      • Jon Garrett

        Notice how they bitched and moaned about Moto wanting 2.5% for their patents but apple is now asking for the same percentage !!!! talk about hypocrisy !!

      • leganzish

        We all know damn well the manufacturers aren’t going to eat that money! Consumers take the pounding every time.

    • http://mihai.discuta-liber.com/ tmihai20

      Apple is definitely not playing nice. Those 5 to 15 bucks will be payed by us, Android users, maybe not now, but with future phones. I hope they really fail with the new iPad and the new iPhone… We like arguing with each other, but this is all about money.

  • Toonshorty

    Never going to happen.

    Samsung is twice their size, they’ll not take any corporate bullying.

    • Dave Kratter

      Samsung is twice the size of who?

      Apple is the largest company in the world by market capitalization, Samsung doesn’t even compare.

      • ion orov

        Maybe he meant Samsung has bigger schlongs?

        Hard to imagine… them being Asians and all but hey, theoretically possible.

      • AppleFUD

        Market capitalization has nothing to do with “size of a company.”

        market capitalization is only what Wall Street believes you are “good for” in the future–in other words, how much should we invest in the company.

        Samsung is a much larger (as in size, number of employees, number of facilities, etc) company than Apple in every other respect.

        $ != size

        • Michael L

          Market shares mean everything. If they were to sell right now Apple hands down would be worth more. Number of employees don’t mean anything.

          • AppleFUD

            Apparently you can’t read.

            Did I, anywhere in my statement, say that Samsung is worth more or apple is worth less than Samsung? NO!

            We are talking about “size” not worth. Maybe you need to look up the definition of “size.”

            Secondly, “market shares” is something entirely different than “market cap.”

          • Michael L

            Market capitalization is just a fancy name for a straightforward concept: it is the market value of a company’s outstanding shares. This figure is found by taking the stock price and multiplying it by the total number of shares outstanding. For example, if Cory’s Tequila Corporation (CTC) was trading at $20 per share and had a million shares outstanding, then the market capitalization would be $20 million ($20 x 1 million shares). It’s that simple.

            Kindof sounds like market shares.

  • Klaus

    Just do it. Stop the crazy lawsuits the easy way and just give them some money. I don’t like Apple “winning” but if it’ll stop all these frivolous lawsuits then this may be the best solution.

  • Kindroid

    Offer them $.10 on the dollar….and everyone go home happy.

  • Oskar Wismierski

    DIE APPLE, DIE!

  • hurricane87

    Nope. Tell Apple they rather pay legal fees for the next decade then give a dime to them.

  • cwjones4

    Didn’t apple just balk at motorola trying to get them to pay $3 an iphone/ipad a few months ago? this is all such a joke. I hope they don’t take it, but i’d also like for all of this patent nonsense to stop.

  • ion orov

    Part of me wants the lawsuits to keep flying.

    Perhaps when they all realise they’ve spent billions in lawyer fees, they’ll smack their foreheads and decide to give millions to politicians instead.

    You know… bribe some congressmen to reform patent law or something.

  • http://keenanesq.blogspot.com mtlgtrst

    No way Samsung caves on this. Nor should they. The future is open source, and Apple is the crotchety old man holding a shotgun and yelling at everyone to “stay off my damn lawn”! What I want to see happen is for everyone to agree to a truce on the patent litigation and concentrate on making the best products on the market. Apple is in no position to get my sympathy here.

  • Nathan D.

    I wouldn’t be surprised if they pull a Microsoft play book and start charging royalties to get rich quick because that would be a dick me if you ask me which makes Microsoft a dick to begin with anyways.

  • aranea

    It’s nice to see that Apple is backing off and taking some of its own medicine. Also the good thing is even if they agree to pay now slide to unlock is easy to change but apple will have to pay 2.5% no matter what they do because motorola patents aren’t easy to go around software patents.

  • AppleFUD

    Apple needs this more than Samsung and/or Motorola. . . at least at this point in time.

    Apple is screwed with the data patents Motorola has and they know it will only get worse when all these companies insist that Apple license directly with them–no more free rides via vendors.

    Apple’s patents that they are “winning” in court are craptastic software patents. They have yet to win anything substantial.

    I say, MOTO and Sammy. . . STICK IT TO THEM. Apple needs to learn to play with other companies appropriately–you don’t get to come into an established market and tell everyone else that they can no longer produce competing devices when they are the companies who’s IP you are using to build your product in the first frickin’ place!

  • jamal adam

    I like to eat apples but this one in particular is getting on my nerves.

  • haters on the rocks

    Ohhh helll naw!!!!!! F u apple and whack ass game plan apple ur a innovation killer can’t play nice so u charge android 5-15 dollars per handset. I hope this gets declined

  • Marc

    I personally hope this does not happen because if it did, I would not want to give my hard earned money to a company that has hoarded over $500 billion dollars and yet continues to openly invest in manufacturing companies that support bad business ethics and terrible work conditions. With talk of Apple possibly becoming a $1 trillion dollar company, you’d think they’d try to spend some of it trying to make the world a better place. Right after I read that they chose a poisonous alcohol solution to clean their devices because it’s cheaper and dries faster, I’ve tried my best to cut myself off from their ecosystem. At least I know, I have a heart. Then again, I’m sure Apple doesn’t give a shit about anybody but themselves. Makes me sad to be an American.

  • Michael L

    LOL patent wars have always been a fight with companies and new technologies. Yet you Fandroids hate on Apple for it. The other companies do it as well but no word of that huh. It’s their product, they should fight for the rights. Just as much as the next to fight for theirs. Hench the purpose of the patents/rights. All the companies will pay someone else for something. People who have never used the other products shouldn’t run theirs mouths about anything either.

    Grow up people. Simply business.

    Oh And by the way I use both products on a regular. So I have a right to pop crap. LOL

  • damambt

    pocket change for Samsung.

  • NegativeOne13

    I vote that for every drive MM and Sammy has to pay, Apple has to boot one of their iSheep.

    • NegativeOne13

      Kay… I must be drunk. Drive = device. That is all.

      • thekaz

        With that kind of auto-correct, you’d think you were using an iPhone!

  • CactusCat

    Dr. Manhattan needs to put the fear in to Cupertino for being morons.

  • kungpaodragon

    Apple wants to settle because they know their patents are crap. (“Follow a predefined path to unlock.” Really? A pattern is nothing like a retarded horizontal swipe.) While Motorola owns something real: Push Notification. Moto already won it in German. I say let’s take the battle here. Let’s see what Apple will do without Push Notification. Maybe they can get USPS to send out notifications. That’ll help save USPS, too.

  • Hall Lo

    oh NOW you want to stop, apple. i just hope that the patent system will be fixed, rather than this kind of settlement.

  • Richard Yarrell

    I would tell those COWARDS in Cupertino to come on out to the BIG CITY so we can RIP YOUR head off. Apple sucks eggs and Samsung will never back down to apple.

    • squiddy20

      So why don’t you be smart for once in your miserable life and do what you say you’re going to do? Just go right here: http://www.apple.com/contact/ and tell them yourself over email, phone, IM, or even in person. Or are you too much of a “coward” to follow through?

    • Steam

      Why don’t you go to Cupertino, walk straight into Apple HQ, start pimp-slapping people with your GNex, while telling them that they’re cowards, stupid, and useless bums. When the security guards rush you, just hold up your phone menacingly, let out a war scream, piss yourself, and rush at them with it. I’m sure your GNex will transform into an 11′ tall Andy the Android robot who will fight them by your side because yours is the special Richard Yarrell edition. It will also summon an Evo and an Evo3D which will also transform into smaller, but still huge Andys with “legendary” written across their chests to assist in battle. They will breathe fire and shoot lightning out of their eyes at all of the coward Apple employees.
      Be sure to get someone to record it and get it on youtube ASAP.
      I can only imagine the headlines, “Deranged man assaults Apple employees with phone – claims android rules the universe – confused even the top forensic psychiatrists”.

  • tao.lviv

    One my side says – Guys, make cells not war! Patent wars are bad, and won’t bring any advantage…

    But the other one says – DIE YOU BLOODY APPLE, DIE!!!!!!!!

  • Finn Kempers

    Apple shows its true money-grabbing side -___-

  • http://None Javier Bastardo

    This just reaffirms what we all already know, this is all about the money, and coming from a company like Apple, this is just sad and pathetic.

  • alexanderharri3

    Apple: Can’t beat em, sue em. Very odd to see Apple offering (crazy high) settlement for a company which just a few months ago would sue til winning or defeated. 2.5% for ONE patent needs to go away. License for .1% maximum – or 2.5% of software development. This whole can’t beat em, charge em with licensing for software patents that were given through a process that needs serious revision.

  • Michael L

    Why are all of you bashing Apple??? All of the other companies are doing it or trying to do as well. But hey I’m on the Sammy bandwagon so I’m antiApple or the Moto bandwagon. You people are ridiculous. Moto is trying to do it to Apple. Cry about that one, but no they use Android so I’m on the bandwagon. What about windows they do it. Every industry has done it with new things from food to cars to electronics. Name of the game get over it. Just cause Apple is on top you shouldn’t hate.(and I they weren’t this sure would not be an issue.)

  • bubblez

    DIE APPLE DIE!!!! Android RULEZ… the bloody auto correct feature sucks