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Of course LTD loves the "exit" strategy.

You realize that this won't let Apple of the hook for prior transgressions, right?

It doesn't really matter. Apple will eventually pay, but they're looking for the best deal possible.
 
It doesn't really matter. Apple will eventually pay, but they're looking for the best deal possible.

So what they pay and what is deemed fair by either party is subjective. I agree. I agree that Apple will pay. I also agree that what is fair is subjective and that ultimately the courts will decide. What they decide may or may not be fair. But that won't stop the "hoopla" on this message board either way. Motorola will either be cursed for being greedy and that ultimately it doesn't matter because it's pennies for Apple - or Apple will be victorious - sticking it to Motorola and (again) it won't matter because it's pennies.

Do I have that right, LTD?
 
Knowing Apple, they will probably just move to 4G, make sure that the licensing is determined and then drop 3G products like a sack of potatoes. They may just endgame around the traditional telecom folks and build their own WiFi carrier. Perhaps that's what the cash hoard is for.

Does not work that way. dropped support for 2G and 3G no carrier would support them and tons of users would be SOL. Apple is required to support both of those techs for quite some time in the future.

Top it off going 4G only does not get Apple way from Motorola. Guess who owns a good chunk of the LTE patents as well (you guess it Motorola) and Motorola will go after a cross licencing agreement to get the ones Apple controls in LTE. The LTE patents Apple gains most of them are going to fall under FRAND rules when it is all said and done.
 
In the early days of cell phones, Motorola did a whole bunch of research and came up with ideas on how they thought cell phones should work. Those ideas were patented, and so when Motorola suggested that they be incorporated in a standard, they were told that their licensing terms must be fair and reasonable.

That's a widespread belief, but it was apparently not as simple as that.

When the companies were getting together to decide on the GSM standard, many of them originally wanted to just pool their patents for free. The larger players naturally did not.

So what ended up happening was that everyone made individual cross-patenting or license deals with each other. The smaller companies agreed to FRAND terms amongst themselves, while the larger ones asked for more money. Motorola stood apart in asking for no money at all... just cross-licensing.

Because of the resulting mess, ETSI was formed to try to force all participants into FRAND licensing. However, government pressure from around the world (especially the USA, who was afraid of Europe making all the rules) made ETSI dropped all the "required" parts, and instead FRAND is now simply a strong request.

(Much of this taken from Mobile Telecommunications Standards - Section 7.4.2 IPR Policies and Practices of Standardization Bodies. available from Amazon )

Because otherwise Motorola could dominate the industry: just wait say 5 years for the standard to fully take hold, and then announce that you're charging 25% royalties for the patents.

A company called IDC actually did that (show up with critical TDMA patents later on). A US judge threw them out, but a German judge let some stand, and now that company makes a good living off EU royalties.

And then Apple comes along, and suddenly Motorola wants 2.5% (or 2.25%?) of the sale price of everything cell-related that Apple sells. Now, even discounting the fact that this is almost certainly an order of magnitude more than Motorola gets from anyone else,

It could be considered a bargain if Apple gets away without giving up any patents of their own. And it's less than Qualcomm gets:

So, what if each one of them wants 2.5%? Why shouldn't Qualcomm get 2.5% if Motorola does? After all, both of them hold patents without which it is impossible to make a cell phone.

Qualcomm currently gets 3.4% of the price of a CDMA or WCDMA phone.

.
 
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Because its not an absure analogy? Motorola wants to get an additional $2.50 for each 32 GB Ipad then from the 16 GB Ipad and an additional $5.00 for each 64 GB Ipad over a 16 GB Ipad. Using the list prices we have the following licensing costs:
Cost Licensing
Iphone 3GS 8 GB $375 $9.38
Iphone 4 8 GB $549 $13.73
Iphone 4S 16 GB $699 $17.48
32 GB $749 $18.73
64 GB $849 $21.23

Ipad 16 GB $629 $15.73
32 GB $729 $18.23
64 GB $829 $20.73

Does that really make sense to you when you think about it. Really think a 64 GB 4S should net an additional $12 or so over a Iphone 3GS for motorola when its doing the same thing? Really think an

Explains pretty clearly why long rumored cell modems in MacBooks hasn't happened.
 
Missed the point entirely. You want to "accuse" someone of making assumptions and then you go ahead and make some of your own. That's called hypocrisy. You can disagree with his premise and even state your own in a better way.

The only accusation I made was that, unless he had inside information, his statement of fact was merely an assumption, a point you missed. And yes, I did make an assumption as well but stated it as such. That's not hypocrisy.

Furthermore, I never disagreed with him. Apple may very well have dragged their feet, but the question was, how does he know? Again, FOR ALL WE KNOW Apple and Motorola are conspiring to somehow stick it to Google in the end.
 
Does not work that way. dropped support for 2G and 3G no carrier would support them and tons of users would be SOL. Apple is required to support both of those techs for quite some time in the future.

Top it off going 4G only does not get Apple way from Motorola. Guess who owns a good chunk of the LTE patents as well (you guess it Motorola) and Motorola will go after a cross licencing agreement to get the ones Apple controls in LTE. The LTE patents Apple gains most of them are going to fall under FRAND rules when it is all said and done.

Back when the Nokia/Apple case was big news I remember reading that half of the LTE patents belong to Nokia.
 
Is absurd because a car IS not a phone so comparing it to a phone doesn't make sense.

And that without considering that the 2.25% of every product is only the invention of Florian Mueller

First of all an Ipad isnt a phone either, and yet they want the same % for it as well, if Apple makes a car I would expect it would be covered under this 2.25% (or more practically) if they put 3G in $1499 TV, I would expect it would be covered under this, and again, why should phones with different memory storage requirements pay different amounts of royalties on 3G patents? Why exactly do you think this is an invention of Florian, isn't apple quoting that number in last years letter to the FRAND folks? It would seem strange for them to quote a number from Florian, instead of the actual number that Motorola asked for from Apple. A pricing based on a percentage of the part of Motorolas that isnt being used due to them using Qualcomm part would seem a much more fair cost alternative then one that changes by the amount of Ram you install or the number of pixels on the screen.
 
Why exactly do you think this is an invention of Florian, isn't apple quoting that number in last years letter to the FRAND folks?

No, in the letter to the ETSI there is no percentage, no name, nothing.

http://fosspatents.blogspot.com/2012/02/motorola-wants-225-of-apples-sales-in.html

Here you can see the letter, if you can find where Motorola says a 2.25% of the sale price or where it say it wants the same amount for ALL the products I will be very glad to change my opinion.

Without context this letter means nothing
 
Explains pretty clearly why long rumored cell modems in MacBooks hasn't happened.

It's also impractical. You can add a dongle or use a hotspot with no impact on portability or usability in those cases given the already existing size of the computer. They have nothing to gain from it being included.
 
So what do you suppose that 2.25% represents ?

I don't know. And the fact is the only people that know what it means are the ones involved in that letter.

Florian Mueller doesn't know anything about that so he is making up that to spread FUD, the same thing he always do.

The only thing you can't take with a grain of salt are the documents, and only because he can't change them.

P.S. And looking more carefully at the letter, perhaps even he changes the documents because he has cut part of the letter.
 
No, in the letter to the ETSI there is no percentage, no name, nothing.

http://fosspatents.blogspot.com/2012/02/motorola-wants-225-of-apples-sales-in.html

Here you can see the letter, if you can find where Motorola says a 2.25% of the sale price or where it say it wants the same amount for ALL the products I will be very glad to change my opinion.

Without context this letter means nothing

The letter (or the first paragraph of it) is right there on the article you just sent me to, more of the letter is actually on other sites, so I am confused about what you are arguing. It says 2.25%, if you are arguing that Motorola wants 2.25% of build price vs sale price it doesnt really matter. Nothing here says that Motorola didnt want to receive more money for a 64 GB phone vs a 16 GB phone, (or Ipads for that matter). I think the interesting thing in the article you pointed me to too is that the Qualcomm-Motorola license issue may have the 4S phones (and 3G Ipad 2s).
-Tig
 
The letter (or the first paragraph of it) is right there on the article you just sent me to, more of the letter is actually on other sites, so I am confused about what you are arguing.

Please, can you link where are more parts of the letter? I didn't knew that has been disclosed more parts

And the thing I'm arguing is the claim that Motorola wants 2.25% of the price sale of ALL the products with GPRS tech.

Nothing here says that Motorola didnt want to receive more money for a 64 GB phone vs a 16 GB phone, (or Ipads for that matter)


And nothing there says that motorola did want to receive more money for a 64 GB phone vs a 16 GB phone, (or Ipads for that matter)
 
Shouldn't that be weighted by how big of a pool they are dealing with to use a particular standard?

That's certainly one way.

My understanding is that Qualcomm holds a lot of CDMA patents, meaning their share is understandably bigger.

Motorola has 50% of the GSM base patents and I believe that Qualcomm about 50% of the CDMA base patents, so they sound the same in that respect.

OTOH, those companies no doubt weight each patent by how essential they think it is :)

Moving forward, is LTE licensing just as complicated?

Apparently so. I can't even find a consensus on who owns the most valuable ones.

By sheer count, Nokia has the most LTE patents, followed by Ericsson, Qualcomm and Nortel (I don't know if those include the Nortel ones that Apple bought or not. Nortel also sold a bunch before the auction.) Heck, even RIM has some.

Listed by patent value (essentiality), I saw one chart that was overwhelmingly LG and Qualcomm, then continued to lessen with IDC, Motorola, Nokia, Samsung, ZTE, Nortel, ETRI, TI, Ericsson, NSN, RIM, Freescale, Huawei and NEC.
 
Lte

To those people saying that Apple has no vested interest in how FRAND licensing, you should consider that Apple along with the consortium has a significant number of LTE patents from Nortel. If Apple is such a bully, I don't see them throwing lawsuits against manufacturers regarding LTE.

:D

----------


From AI forums:
PowerMach said:
Here's a link to court documents: PDF

Apple’s original iPhone went on sale in June 2007. Apple’s original iPhone contained
an Infineon baseband chipset, which incorporated technology covered by patents that
Motorola has declared as essential. Apple purchased the Infineon baseband chipset through
a manufacturing agreement with Chi Mei Corporation, which manufactured the Infineon
baseband chipset under a licensing agreement with Motorola. On August 4, 2007, Motorola gave Chi Mei a 60-day suspension notice on its licensing agreement.

On December 16, 2009, Apple and Qualcomm entered into a contract whereby Apple
would purchase chipsets from Qualcomm that were compliant with the CDMA2000
standard. The chipsets incorporated technology that Qualcomm licensed from Motorola.
On January 11, 2011, on the day Apple announced the Verizon iPhone 4, Motorola notified
Qualcomm of its intent to terminate any and all license covenant rights with respect to
Qualcomm’s business with Apple, effective February 10, 2011.

seems pretty suspect to me...
 
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If I were Apple sending such a letter to a regulator I would attach a check for $10,000,000.00 payable to a special master appointed by the court to pay royalties due. This would establish once and for all they are more than willing to pay reasonable royalties, but are targeted for litigation being the largest pot of cash.

Such a check and letter would not only get their immediate attention, it would make the point with no confusion.
 
FRAND doesn't mean anything other than fair, and frankly, fair is quite subjective. As long as the deal Apple gets is similar to other manufacturers, it doesn't have to be identical at all.

A faily common misconception around these parts.

2.5% of $30 dumb phone = $.75
2.5% of $650 iPhone = $16.25

$.75 not equal $16.25 thus not fair. In fact it's not the fact that they are not equal it's the fact that the technology used in both handsets is exactly the same and doesn't cost a penny more to implement. How can Motorola justify charging 21x more to allow Apple to implement a technology on an iPhone versus any other dumb phone?
 
2.5% of $30 dumb phone = $.75
2.5% of $650 iPhone = $16.25

$.75 not equal $16.25 thus not fair. In fact it's not the fact that they are not equal it's the fact that the technology used in both handsets is exactly the same and doesn't cost a penny more to implement. How can Motorola justify charging 21x more to allow Apple to implement a technology on an iPhone versus any other dumb phone?

I don't think the f in frand stands for goody two shoes type fairness.
 
It's called a community design; also designs are patentable. A number of companies do it and not just Apple.

Moreover, that design is a very big argument and an accurate form factor in the present era that was nowhere to be seen in the 90's or the early 2000's.

It's not a rectangle. Maybe you should learn how to read a community design/patent. Moreover understand that rectangle is a 2D figure whereas the design in the patent is 3D concept.

Rage on, sir.

There are criteria to design patents. You can't just patent a rectangle, although a number of people on here have claimed Apple attempted to do so (I haven't seen the patent, so I don't know how close that is to the truth).


This would establish once and for all they are more than willing to pay reasonable royalties, but are targeted for litigation being the largest pot of cash.

They've tried to avoid paying in the past. Wasn't FRAND offered on this matter in the past as well?

2.5% of $30 dumb phone = $.75
2.5% of $650 iPhone = $16.25

$.75 not equal $16.25 thus not fair. In fact it's not the fact that they are not equal it's the fact that the technology used in both handsets is exactly the same and doesn't cost a penny more to implement. How can Motorola justify charging 21x more to allow Apple to implement a technology on an iPhone versus any other dumb phone?

What phone costs $30? Any that I've seen that low are heavily subsidized. I've never seen pay as you go type phones for such a small amount.
 
2.5% of $30 dumb phone = $.75
2.5% of $650 iPhone = $16.25

$.75 not equal $16.25 thus not fair.
Therefore it should be based on the parts costs so the value added of the manufacturer's network or ecosystem is not penalized. Also that is not caused by the patents at issue.

Re: my $10m check suggestion, the target audience for that tactic is regulators who are interested in intent, not plaintiffs who only care about squeezing blood from a rich turnip using lawyers, so mainly only lawyers win.

Rocketman
 
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