MMI Said to Want 2.25% of Apple Sales for Patents
That price, depending on MMI’s other terms, could easily translate into a billion-dollar payment
By: Maureen O'Gara
Feb. 9, 2012 07:30 AM
Mobile phone inventor and proposed Google acquisition Motorola Mobility apparently wants Apple to pay a royalty of 2.25% of sales to cover a FRAND license to its fundamental standards-essential patents according to an October 17 letter between the companies' outside German lawyers unearthed over the weekend by patent sleuth Florian Mueller.
That price, depending on MMI's other terms, like how far back it's talking and exactly what devices it means, could easily translate into a billion-dollar payment and give other essential patents owners similar delusions of grandeur imperiling Apple's cost structure.
Florian assumes MMI means 2.25% of sales and that the number would cover all MMI standards-essential patents although in the known context it relates only to a GPRS patent MMI used last Friday to force Apple to remove certain products from its online store in Germany for a few hours before Apple got the injunction raised.
Even if it does relate to all MMI standards-essential patents, Florian thinks the amount, usually a big secret, is "excessive."
Apple is currently seeking to establish what MMI charges other companies for any of its patents, essential or otherwise, so it can charge discrimination.
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