Motorola Going After Apple, Seeks 2.25% Royalty on iPhone and iPad Sales

Motorola Mobility

So first Motorola Mobility wanted Apple to stop selling their products entirely (in Germany) but following allegations of FRAND violations, they have reconsidered. It seems that they will now be satisfied by a mere 2.25% of Apple’s sales in exchange for a patent license. Reports on what this would mean actually vary but this profit sharing plan would have put anywhere from USD $1 billion dollars to $2.1 billion dollars in Motorola Mobility’s pocket last year alone.

The oddity of the request is the vague nature that isn’t clear on whether they expect profits from the sales of the violating products alone or from all iPhone and iPad sales. Either way, Apple isn’t likely to hand over that kind of money without some kind of fight. Motorola itself has been quoted as saying they aren’t hopeful, but the rules of negotiation say to start high so you can settle somewhere more reasonable.

Not to be taken advantage of, Apple has filed suit to see the licensing arrangements that Motorola Mobility and Google have in place with other manufacturers such as Nokia and HTC. Chances are good that the contents of those agreements will dictate Apple’s next move, which may be revenge (these guys do not like to be bullied even less than they like to spend money frivolously) if they do end up having to fork over that kind of cash.

With so many patents changing hands in the last short while and with the profits being made on mobile devices increasing exponentially, companies are bound to become much more vigilant about protecting their own intellectual property. Maybe Google (who owns Motorola Mobility now, don’t forget) can use these funds to pay for the considerable number of patents they are now going to owe on from Apple and their group of fellow Nortel-patent-purchasers.

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