Feb 06 AT 2:23 PM Edgar Cervantes 30 Comments

Motorola patent license will cost Apple 2.25% of sales

android-vs-apple Image via: laihiu with Creative Commons

After Motorola’s victory last Friday, Apple was forced to remove multiple iPads and iPhones from its German online store. Apple was able to quickly put them back up, after asking Motorola for a patent licensing deal. It has just been discovered that Motorola is willing to work with Apple on this, but for quite a substantial price.

According to a document discovered by FOSS Patents, Motorola is asking for 2.25% in royalties. The exact details are still unclear, so it is unknown whether this will apply only to affected devices or not. Such included the iPhone 3G, iPhone 3GS, iPhone 4 and all 3G-enabled iPads.

Regardless, Apple is one of the most successful companies in the industry, so 2.25% will amount to many, many millions of dollars should they accept.

Apple is not keeping its arms crossed, though. They know that the tension between Apple and Android manufacturers is strong, and Motorola could be biased against the Cupertino giant. Apple has recently requested information about Motorola’s deals with other companies, in an attempt to prove that such a percentage is too high. Said manufacturers include Nokia, HTC, LG and Ericsson.

Stay tuned to see how this one unfolds, and we will definitely stay on top of it. This is just the beginning of the retaliation. With Google set to protect Android manufacturers from the patent wars, along with the acquisition of Motorola, things are looking bright for the future.

What do you guys say? Is 2.25% really too much? Do you believe Apple (and company) will be less likely to bother Android manufacturers after a few court losses?

Via: Engadget

Source: FOSS Patents

Hello, I am Edgar Cervantes. I am an avid Android fan, and keeping myself updated on the topic is part of my daily life. I will always work hard to give the best of me to our community of Android enthusiasts, and I am very honored to be part of this ship. Hopefully we can all enjoy sharing our knowledge and opinions!

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  • spazby

    Way to go moto

    • Jeff Pan

      Give them a dose of their own medicine!

    • YMS123

      It’s no wonder Google wants to buy them and all their juicy patents

      • leganzish

        Looking back in a few years that acquisition might look like a huge momentum shift in the legal security and product viability of Android!

        If it goes through, that is…

  • http://blog.artesea.co.uk artesea

    It’s not going to be 2.25%. Motorola (and Samsung) ask for something high, try to get Apple to allow a swap so they can use the GSM tech, whilst tablets can look like iPads and have swipe unlock. At worst the courts do force Apple to pay but at a much reduced rate.

  • fatspirit

    This is high enough for Apple to think hard about their patent trolling way.

  • Karlnorway

    I think (cr)apple will start sue even more than they already do….

    But good on you MOTO (google).


    this is the deal I propose.. You leave us alone and we will leave you alone. hahahahahaha

    • WlfHart

      Don’t we wish!

  • greeny42

    Victory is sweet!

  • dpleus

    Considering we know Apple is paying licensing fees to Nokia, if this 2.25% is higher than that Royalty fee, I can see where Cupertino may balk at the percentage. But regarding Nokia again, they had to make an upfront payment and royalties to them, I don’t see above that Motorola is asking for a lump payment. Really it’s all speculation on our part since none of us are privy to the court records. Hopefully, this will start a trend where companies pursue licensing agreements prior to suing for patent infringement.

  • McLovin

    It would have been much sweeter if it was Samsung instead of Motorola.

    • dcds

      I like it just the way it is. It’s Google and Android behind this, and that’s all good…

      I Like Android ®. If Sammy is green, then I like Samsung.

    • http://droidsamurai.blogspot.com DroidSamurai

      Actually, if Google really cares about Android’s patent position, after the acquisition of Motorola completes, it should set aside a portion of the royalty payments received from smartphone related patents as a reserve to help any Android manufacturer to defend against patent trolls, as long as they are being sued for using features inherited from the stock Android OS.

  • Wunako

    way to go, but of coarse this will never end im sure Job’s last dying wish was to begin a slow but all on attack on android. sucks but hey to each his own, as long as android continues to keep growing better and better ill be a happy customer

  • Bryan Stoner

    So this is what happens when your patent claims make sense. A simple win. Nice goin Moto!

  • taketheleap

    I would have offered this:
    “You give 2.25% of your sales, *OR* drop all legal patent suits for Android worldwide for now and the next 5 years.”

    … yeah, I don’t think Cupertino would have taken it either.

    • ZRod

      They’d rather pay 100% instead of option 2

  • KRS_Won

    Not enough, companies already pay license fees to Motorola for 3G radio patents. Apple banked that they could use the patents without paying, if Motorola sued, Apple would claim FRAND and get reimbursement from Motorola for court time.
    This isn’t a simple patent claim like “it’s rectangular” or “slide to unlock” (things that had prior art or are not inductive of the system to operate), it’s a direct “We are more powerful than you” statement.
    Apple should be forced to do what they ask of their competition, banned. Lol. But really, 5% plus legal fees.

    • KRS_Won

      On a side-note, 2¼% of all past, present, and future sales… ( I need something witty about affording to unlock the bootloader)
      GO GO Googarola!

  • Frettfreak

    totally awesome!!! Hope this is just the start of making them pay. Hope they just remember that THEY started all this legal crap. Dont play if you cant pay!! NOW FOD APPLE!!!

  • aranea

    How much Windows is getting from Android phones? 2.25% doesn’t seem that much. Besides Apple will put the price to consumers anyway.

  • cb2000a

    Moto takes a bite of the Apple…yes it might be less but it will still be a lot….way to go Moto…

  • jamal adam

    As they say, “what goes around comes around.” POWW!!

  • DuDlik

    I think Apple no pay …

  • Voliam

    You reap what you sow, Apple!

  • Trinhbo

    How you like them apples?

  • Coltsfan74

    Way to go Moto.

  • Jon

    This whole patent battle is just daft. Essentially, they all own patents and license technology to each other… then argue over the licenses and patents. In the end, it all pretty much works out the same, but in the meantime they line the pockets of a load of lawyers and the courts.

    Why not use a bit of common sense, agree not to take the petty cases to court and get on with making some decent technology. Smartphones have barely changed since the original iPhone – yes, they’re a bit faster and a bit cleverer, but a new phone really isn’t that much more capable than the first Androids and iPhones. I think at least some of the stagnation can be blamed on the time spent messing about with patents rather than actually innovating.