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Oletros

macrumors 603
Jul 27, 2009
6,002
60
Premià de Mar
The clear fact can be deducted very very easily with a very simple calculation -- if you apply a similar rate (2.5% for one patent) to all of the other patents involved in the phone, Apple would have to pay at least 250% of its revenue for the patents held by other companies.

This doesn't answer my question.
 

blahblah100

macrumors 6502
Sep 10, 2009
272
30
Samsung copied off Apple on the test.
Apple told some teachers.
Now you think it's okay for Samsung to tattle on Apple to the teachers?

Good logic there. Apple didn't start it - Samsung did.

Was the Swiss Clock design on the test?
 

tbrinkma

macrumors 68000
Apr 24, 2006
1,651
93
Everyone, including Apple, pays Qualcomm separately for the physical chip, and then the royalty for whatever IP they use to run on the chip.

This is especially necessary with today's all-in-one chips. You would not want, for example, to buy a chip and pay for LTE or CDMA if you're not using LTE or CDMA on a particular phone.

As for the rate being based on the price of the phone, I have covered the reason for that in another post. Basic example: a 3% rate on a $100 phone ($3) would not cover the cost of a $16 chip!

I don't know why you think the royalty rate needs to "cover the cost of a $16 chip!" The royalty rate only needs to cover the royalty for the patent(s) in question. The cost of the chip itself is another issue entirely. Your example of a 3% rate on a $100 phone using a $16 chip would result in the net cost of the chip being $19 ($16 for the chip + $3 for the patent).

In the particular case of Qualcomm, there are reports that Apple negotiated a deal where they pay royalties on the price they pay Foxconn for each iPhone, not on the actual wholesale price they charge others:

"...the royalties paid to Qualcomm are based on the price Apple pays Foxconn for each iPhone – about $244, they estimate – not the wholesale price that Apple charges carriers like AT&T for iPhones, which they say averages about $590. Assuming those prices and a 4% royalty rate, they estimate that Foxconn pays Qualcomm about $9.70 per iPhone–compared to $23.60 per phone that Apple might pay directly, based on the higher wholesale price." - WSJ - Does Apple enjoy a Licensing Loophole?

So it's bad that Apple negotiated a rate lower than the initial offer?



It was Apple and Motorola. And it wasn't up to Motorola. They said they would go along with whatever the judge decided. It was only Apple who refused.

No, Apple said if it were $1 or below, they wouldn't bother to move forward trying to invalidate patents they didn't think were valid, and would accept it without appeal. If it were above that threshold Apple simply reserved the right to continue to invalidate those patents.

As for the particular example of challenging validity, a US judge ruled last year that the sheer fact that Apple wanted to reserve the right to do so, not only might make it an unwilling licensee, but also make it valid for the patent holder to raise the price.

The idea that not wanting to pay to license a patent I don't believe is valid somehow makes me 'unwilling' to license any *other* patent is mind boggling. Of course, you didn't get your *prior* description of a case outcome right either, so I shouldn't be terribly surprised that you muffed this one, too.
 

xcodeaddict

macrumors 6502a
Mar 2, 2013
602
0
Android is a piece of crap, written by Google nerds who have their heads in the sand. Sorry to be so blunt, but their "improvements" are just lipstick on a pig, and they don't have the design taste to get it right, ever.
 

samcraig

macrumors P6
Jun 22, 2009
16,779
41,982
USA
Android is a piece of crap, written by Google nerds who have their heads in the sand. Sorry to be so blunt, but their "improvements" are just lipstick on a pig, and they don't have the design taste to get it right, ever.

What about it is crap? What improvements are you referencing. And what is your total use case timeframe for using Android. And which versions.

Surely this enlightened opinion you have has some depth, right?
 

xcodeaddict

macrumors 6502a
Mar 2, 2013
602
0
What about it is crap? What improvements are you referencing. And what is your total use case timeframe for using Android. And which versions.

Surely this enlightened opinion you have has some depth, right?

Who are you - a court of law? lol! :D

It's crap - in my opinion - only someone trying desperately to "prove" to me that it isn't, would ask such pedantic questions. I've seen Android far too many times to deem it an efficient system, overall. It's buggy, fragmented, inconsistent and maintained by a company with zero ethics and NO idea about what real world (read: everyone APART from geeks, which is about 95% of their customers) want.
 

redrubberband

macrumors newbie
Jun 5, 2013
1
0
Los Angeles
Samsung's official Comment

"We believe the ITC's final determination has confirmed Apple's history of free-riding on Samsung's technological innovations," Samsung said in a statement to the Althing’s website. "Our decades of research and development in mobile technologies will continue, and we will continue to offer innovative products to consumers in the US."
...I think it is absolutely discussing as its actually vise versa. If one does a little research on Samsun and their emergence in the Television market in the 1970's you will learn that their corporate culture has ALWAYS been get-a-hold-of other products, dismantle them and improve upon every aspect.
Making it even worse, US tax laws take funding away from innovation while Korea tax laws shelter funding for future rip-off's of US innovation. In the case of China, they just hack in to their rival and steal to their way to the top. I learned that recently on my way to work listing to NPR. Its a fact. The IRS's greed stifles new growth opportunities and makes new or struggling business exist in a hostile economic environment.
Meanwhile in Asia, they make all of the parts used for Iphone, assemble the product. How could a company with a track record like Samsun NOT steal secerates?
 

samcraig

macrumors P6
Jun 22, 2009
16,779
41,982
USA
Who are you - a court of law? lol! :D

It's crap - in my opinion - only someone trying desperately to "prove" to me that it isn't, would ask such pedantic questions. I've seen Android far too many times to deem it an efficient system, overall. It's buggy, fragmented, inconsistent and maintained by a company with zero ethics and NO idea about what real world (read: everyone APART from geeks, which is about 95% of their customers) want.

LOL - your post speaks volumes. Thanks.
 

Renzatic

Suspended
Android is a piece of crap, written by Google nerds who have their heads in the sand. Sorry to be so blunt, but their "improvements" are just lipstick on a pig, and they don't have the design taste to get it right, ever.

Ahh. I see we're using the old "lipstick on a pig" chestnut to describe Google now. Good to see that things have at least marginally progressed around here.
 

vvswarup

macrumors 6502a
Jul 21, 2010
544
225
Apple had the right to refuse, but that also means they'll have to pay more than an entity that cross-licenses.

For example, when Apple settled with Nokia, they reportedly cross-licensed some IP to get lower rates.



Apple asked for a rate without cross-licensing, then failed to enter into any arbitration or negotiation as ETSI rules suggest. So they got banned.

But expecting non-essential IP to be used as currency for SEP licensing fees is a bad trend. Companies that own SEPs will be able to use their market power to essentially get a reduction in R&D costs.

----------

Was the Swiss Clock design on the test?

But Apple negotiated and paid a licensing fee.
 

MacBram

macrumors regular
Jan 28, 2002
132
28
Zeeland, Nederland
To be fair - if EVERYONE followed Apple's model - the cell market wouldn't succeed because it would be leaving many people without the ability to own a phone.

You can't have every company making ONE phone and have it be high end. And priced as such.

Further - the one thing some people (not saying you) fails to really accept is that the iPhone would not exist had it not been for other manufacturers spending YEARS of R&D, $$, and creating varieties of phones. Nor the carriers who also helped "groom" customers into increased costs and services. Without everything that came before - Apple wouldn't have been successful.

Whoah, hang on there. This isn't about Apple's model, that's the whole point!

My objection was to Darling's comment that royalties/licenses are designed so that the more valuable product subsidizes the cheaper product. He brought up margins. He stated that a 100-dollar phone with a 4-dollar margin couldn't pay the kind of royalty that a 650-dollar phone with a 200-dollar margin could, and presumably should.

The royalty/license shouldn't be tied to the value of the whole product, because the products are not comparable and some businesses have different business models than other businesses. It should be tied to the common part that gives each product the specific function that is under patent.

I am wondering if this is not like music or some other sphere where royalties are applied? Would you or Darling suggest that a person using a Bose Digital Radio should pay more for his music or the ability to stream it than a person who listens to a cheap crappy radio? Why not, he is obviously getting more "value" out of the experience and he can afford it, right? No, the royalty is part of the cost of the "song", not the equipment it is experienced through. Likewise, the patent in question is part of the radio component made by Qualcomm or whomever, nothing to do with the device it's going into.

Not only was it suggested that Apple should subsidize others (because they can afford to), you are now suggesting that Apple should prop up the whole industry, and they owe it to everyone, because it turned out, to everyone's chagrin, that, yes, they were indeed the computer guys who could just walk into the business and turn it on its ear.... and, sure, it was all down to the little part from Qualcomm, yeah ;)

Sorry, but the reason that ATT (the only ones BTW) took a chance on the iPhone was because of Apple's years of success with the iPod, and Apple obviously had something to show ATT and propose to them that was unique. Let's turn your statement around... "many people fail to accept that the only reason that the Samsung Galaxy even exists today is because of the years of R&D and effort spent by Apple."

The only reason I pay "an increased fee" is because I know Apple stands behind their products and services with proven track records and satisfaction rates. That is why people are willing to pay a premium for the iPhone. I don't give a monkey's for the phone company's service; I get unlocked phones and shop around for services.
 
Last edited:

samcraig

macrumors P6
Jun 22, 2009
16,779
41,982
USA
you are now suggesting that Apple should prop up the whole industry because it turned out, to everyone's chagrin, that, yes, they were indeed the computer guys who could just walk into the business and turn it on its ear.... and, sure, it was all down to the little part from Qualcomm, yeah ;)

First I never said what you are suggesting.

And no - it's not just because of the work of Qualcomm and its chip.

Respectfully, I don't think we can discuss this further. You seem to be incorrectly regurgitating things others are saying and not understanding what they are. It would be a futile discussion. So I'll remove myself from it :)
 

topper24hours

macrumors 6502
Jul 27, 2012
352
0
1) Open source does not imply free of charge.

2) Software development costs money.

1) ok.. I mean, to most people it does. This is why red hat didn't sell Linux, it sold support

2) sure.. however, since Google bears those expenses.. as I said- phone manufacturers CANNOT claim that a portion of the cost of the phone is for the OS
 

samcraig

macrumors P6
Jun 22, 2009
16,779
41,982
USA
1) ok.. I mean, to most people it does. This is why red hat didn't sell Linux, it sold support

2) sure.. however, since Google bears those expenses.. as I said- phone manufacturers CANNOT claim that a portion of the cost of the phone is for the OS

All senseless to debate. The original premise is flawed. Apple isn't going to claim iOS as a $X and the phone is $1.
 

Oletros

macrumors 603
Jul 27, 2009
6,002
60
Premià de Mar
No. Android is open source. You CANNOT claim that the OS is any part of the phone's price.

Android perhaps is open source, Google services are not and Samsung apps are not

----------

Android is a piece of crap, written by Google nerds who have their heads in the sand. Sorry to be so blunt, but their "improvements" are just lipstick on a pig, and they don't have the design taste to get it right, ever.

Is this an example of how a comment must be paid by Samsung to make Apple users look silly?

----------

Who are you - a court of law? lol! :D

It's crap - in my opinion - only someone trying desperately to "prove" to me that it isn't, would ask such pedantic questions. I've seen Android far too many times to deem it an efficient system, overall. It's buggy, fragmented, inconsistent and maintained by a company with zero ethics and NO idea about what real world (read: everyone APART from geeks, which is about 95% of their customers) want.

And if someone has any doubt about that payroll, there is more
 

newcronos

macrumors regular
Jun 29, 2009
102
1
The only reason I pay "an increased fee" is because I know Apple stands behind their products and services with proven track records and satisfaction rates. That is why people are willing to pay a premium for the iPhone. I don't give a monkey's for the phone company's service; I get unlocked phones and shop around for services.

I understand that you're not from the US, but you need to be aware that until about a year and a half ago, what you're saying is not possible here. In fact, it's still not possible in the US if you want to buy an iPhone directly from Apple and 'shop around for service' at its release date.

This is precisely why I've never owned an iPhone. I kept telling people that when Apple started selling the iPhone full price, factory unlocked, at release date, directly from its website here in the US, I'll get one.

That still hasn't happened yet.
 

xcodeaddict

macrumors 6502a
Mar 2, 2013
602
0
Way to avoid the question. Again.

You've quite an ego to assume that you, a total stranger, can FORCE an "answer" from me. I am not required to give you the "answer" you are seeking. I'm not so daft as to be drawn down rabbit holes by pedantic strangers, online.

I would suggest you go and enjoy your day.
 
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