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Old Nov 11, 2012, 12:40 PM   #1
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Apple Reportedly Paid $21 Million for Rights to Swiss Railways Clock Design




Back in September, the Swiss Federal Railways accused Apple of copying its iconic clock design for the new Clock app for iPad included as part of iOS 6. Several weeks later, the agency announced that the dispute had been settled with Apple signing a licensing agreement for the design, although terms of the agreement were not announced.

Tages-Anzeiger now reports [Google translation] that the licensing agreement resulted in Apple making a payment of approximately 20 million Swiss francs ($21 million) to the agency. The report indicates that amount has been leaked by several sources, but the Swiss Federal Railways and Apple have refused to comment on the situation.

The report also suggests that the licensing agreement may not provide any compensation to watchmaker Mondaine, which has been the sole consumer-focused licensee of the design. Mondaine is reportedly happy that Apple has provided increased visibility for the clock design, but remains in discussions with the Swiss Federal Railways over the issue in order to ensure that it is resolved to the satisfaction of all parties involved.

Article Link: Apple Reportedly Paid $21 Million for Rights to Swiss Railways Clock Design
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Old Nov 11, 2012, 12:41 PM   #2
joelvega125
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just 21 mil huh? Yikes...
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Old Nov 11, 2012, 12:42 PM   #3
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I mean it's nice but... was paying 20mill cheaper than loosing an argument?
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Old Nov 11, 2012, 02:09 PM   #4
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I mean it's nice but... was paying 20mill cheaper than loosing an argument?
My guess is that it is based on an estimate of the number of devices sold that use that design. Since Apple sells a lot of iPads, the royalties are higher.
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Old Nov 11, 2012, 12:42 PM   #5
crypticlineage
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Wow, thats incredible!

Remember that the consumer will be the one picking up the tab at the end.
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Old Nov 11, 2012, 01:17 PM   #6
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Originally Posted by crypticlineage View Post
Wow, thats incredible!

Remember that the consumer will be the one picking up the tab at the end.
It will be consumers (those travelling with the Swiss railway) who get the benefit at the end.
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Old Nov 11, 2012, 01:32 PM   #7
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It will be consumers (those travelling with the Swiss railway) who get the benefit at the end.
Nice
But it doesn't work that way. Swiss rail won't lower their prices and neither will Apple raise theirs. Every company will always ask the highest price for their product they think they can get away with. So these 21 million come out of the shareholders' pockets, not the customers'.
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Old Nov 11, 2012, 01:51 PM   #8
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Nice
But it doesn't work that way. Swiss rail won't lower their prices and neither will Apple raise theirs. Every company will always ask the highest price for their product they think they can get away with. So these 21 million come out of the shareholders' pockets, not the customers'.
Yeah, exactly. Apple shows this whenever they charge way more for extra RAM than what the parts cost and when they make more profit off of iPads than competitors (who make around <$0 profit) do.
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Old Nov 11, 2012, 04:47 PM   #9
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Nice
But it doesn't work that way. Swiss rail won't lower their prices and neither will Apple raise theirs. Every company will always ask the highest price for their product they think they can get away with. So these 21 million come out of the shareholders' pockets, not the customers'.
Of course it works that way.

Swiss Rail wouldn't likely lower prices for customers, but if they have a major cash influx, they'll likely spend it upgrading facilities and equipment. This would directly benefit their customers.

All businesses, Apple included, factor the cost of doing business into the price of their products. A specific cost like this one wouldn't likely amount to enough to raise the price of products on their own. However, this cost combined with all the other various costs of doing business (components, labor, real estate, taxes etc.) are what determines the final price of products.

When those costs go up, the price of products increases. When they go down, additional features can be added, higher margins can be temporarily taken (if reductions are seen as temporary) or prices can be reduced to be more competitive.

----------

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Originally Posted by Bobtodd View Post
As a stock holder I think that was a terrible mistake and a waste of money.Someone should have been fired for that.....oh wait.
It would be a terrible mistake if it were true. I still don't think it is.
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Old Nov 11, 2012, 01:35 PM   #10
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Wow, thats incredible!

Remember that the consumer will be the one picking up the tab at the end.
Yes.. we are paying for that, no wonder Apple is getting greedy with customer service.

Last year the battery of my MBP explode and they gave me a replacement for free even the recall was over. This last week the same battery explode again and I had to pay $100 even the replacement was supposed to be better quality than the original.
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Old Nov 11, 2012, 01:46 PM   #11
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Yes.. we are paying for that, no wonder Apple is getting greedy with customer service.

Last year the battery of my MBP explode and they gave me a replacement for free even the recall was over. This last week the same battery explode again and I had to pay $100 even the replacement was supposed to be better quality than the original.
Greedy with customer service? Not sure those words belong together.

So it sounds like you were hoping to get a _better_ battery for free? When I've purchased replacement batteries, they've typically been more than $100, so you probably got yours at a discount. Why are you complaining?

But to take a couple of steps back... why are your batteries exploding? Are you letting them get too hot?
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Old Nov 11, 2012, 01:51 PM   #12
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"the licensing agreement may not provide any compensation to watchmaker Mondaine..."

And why would it? They're just another licensee of the design.
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Old Nov 11, 2012, 05:29 PM   #13
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"the licensing agreement may not provide any compensation to watchmaker Mondaine..."

And why would it? They're just another licensee of the design.
Actually, Mondaine bought exclusive rights to the design so they might be entitled to some compensation now that their license no longer is exclusive.
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Old Nov 11, 2012, 11:01 PM   #14
rei101
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Greedy with customer service? Not sure those words belong together.

So it sounds like you were hoping to get a _better_ battery for free? When I've purchased replacement batteries, they've typically been more than $100, so you probably got yours at a discount. Why are you complaining?

But to take a couple of steps back... why are your batteries exploding? Are you letting them get too hot?
It has the regular use, besides my bed, web browsing at night and at the morning. Its a 17" MBP, I have this iMac and another iMac at work. The battery started to expand all of the sudden in 3 day period, started on a Monday and I went to the Apple store on Friday when the thing was already huge. The first battery they gave me a year ago or so was free. This one was a refurbish (not new) for $100.
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Old Nov 11, 2012, 11:24 PM   #15
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Old Nov 12, 2012, 01:35 AM   #16
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It has the regular use, besides my bed, web browsing at night and at the morning. Its a 17" MBP, I have this iMac and another iMac at work. The battery started to expand all of the sudden in 3 day period, started on a Monday and I went to the Apple store on Friday when the thing was already huge. The first battery they gave me a year ago or so was free. This one was a refurbish (not new) for $100.
1) Expanding and exploding are two very different things.
2) For $100, how do you know it's a rebuilt pack?
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Old Nov 11, 2012, 01:46 PM   #17
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Originally Posted by crypticlineage View Post
Wow, thats incredible!

Remember that the consumer will be the one picking up the tab at the end.
No they won't. Pricing is decided by supply and demand. Shareholders are the ones that lose when companies waste money, not that Apple will miss this much cash.

I find it kind of hard to believe that they paid this much anyway. Maybe it includes some kind of advertising for Apple or they just misplaced the decimal.
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Old Nov 11, 2012, 12:42 PM   #18
TomD1
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This is fair.
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Old Nov 11, 2012, 12:42 PM   #19
miniroll32
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That's one expensive clock... Can it make a drink?
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Old Nov 11, 2012, 12:44 PM   #20
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Or you could look at it another way - 21 million that could have been spent upgrading Mac Pro or fixing Final Cut Pro X, but they chose to spend it on a fancy clock instead.
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Old Nov 11, 2012, 01:00 PM   #21
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Or you could look at it another way - 21 million that could have been spent upgrading Mac Pro or fixing Final Cut Pro X, but they chose to spend it on a fancy clock instead.
Yeah, because throwing money at a problem creates better software instantly..

I am sure the groups responsible for those 2 things are quite heavily funded
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Old Nov 11, 2012, 01:23 PM   #22
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Or you could look at it another way - 21 million that could have been spent upgrading Mac Pro or fixing Final Cut Pro X, but they chose to spend it on a fancy clock instead.
Not to mention all of those silly lawsuits, those cost even more than this tiny little settlement.

But I don't think Apple needs more money in order to fix their products, they just need to want to do it, and then "just do it", that's all…
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Old Nov 11, 2012, 01:25 PM   #23
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I guess it make sense: with all the money Apple is saving by no paying it fair share of taxes (not only in the US) they can spend 20 -and even more- money on tribal things like this. Hooray!
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Old Nov 12, 2012, 12:37 AM   #24
Millah
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Or you could look at it another way - 21 million that could have been spent upgrading Mac Pro or fixing Final Cut Pro X, but they chose to spend it on a fancy clock instead.
I'm sure they're spending plenty of money doing that. Have patience. Sheesh. They've got 100 billion dollars in the bank, you think they somehow can't afford to do both?
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Old Nov 12, 2012, 12:44 AM   #25
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I'm sure they're spending plenty of money doing that. Have patience. Sheesh. They've got 100 billion dollars in the bank, you think they somehow can't afford to do both?
Shhh, don't crack the nest egg.
In tomorrows news: Apple announces $20million in layoffs... "This is in no way related to the recent [drunk] purchase of a theoretical clock."

Edit: However, It was a much better deal than instagram.
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