Excellent point. At this stage Apple has a great deal of freedom of movement.
Of course LTD loves the "exit" strategy.
You realize that this won't let Apple of the hook for prior transgressions, right?
Excellent point. At this stage Apple has a great deal of freedom of movement.
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.
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.
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.
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.
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,
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.
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
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.
Explains pretty clearly why long rumored cell modems in MacBooks hasn't happened.
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.
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
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?
Explains pretty clearly why long rumored cell modems in MacBooks hasn't happened.
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
So what do you suppose that 2.25% represents ?
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.
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)
Shouldn't that be weighted by how big of a pool they are dealing with to use a particular standard?
My understanding is that Qualcomm holds a lot of CDMA patents, meaning their share is understandably bigger.
Moving forward, is LTE licensing just as complicated?
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.
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.
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.
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.
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?
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.2.5% of $30 dumb phone = $.75
2.5% of $650 iPhone = $16.25
$.75 not equal $16.25 thus not fair.