Apple Overturns Motorola's German iPad and iPhone Sales Bans
SpuriousLogic sends this excerpt from a BBC article detailing the suspension of a sales ban on certain Apple products in Germany:
"Motorola Mobility had forced Apple to remove several iPad and iPhone models from its online store [yesterday] after enforcing a patent infringement court ruling delivered in December. An appeals court lifted the ban after Apple made a new license payment offer. However, Germany-based users may still face the loss of their push email iCloud service after a separate ruling. 'A suspension like this is available only against a bond, but Apple is almost drowning in cash and obviously won't have had a problem with obtaining and posting a bond.' ... A statement from Apple said: 'All iPad and iPhone models will be back on sale through Apple's online store in Germany shortly.'"
Reader DJRumpy points out that Motorola is seeking royalties of 2.25% for Apple's wireless devices in exchange for a license to use Motorola's patents.
You use something someone created, you pay them for it. Then why is it when the situation is reversed, Apple says: "F*ck you! I'm going to ban it.". Just makes them seem like hypocrites and frankly, douches.
Apple flings lawsuits like mad. Then it bites them in the butt. Can we all just agree that the patent system is idiotic and far too overbearing already?
2.25% is not a ton of money.....Why don't they just pay it. I wonder if they infringed them on purpose (with knowledge they are using Motorola's stuff) or was it just an accident....
This same patent expert insinuated that Google Motorola buy was a bad idea!
Now, we hear that push email may be gone from iDevices. This is to the expert... ...What you say...?
FRAND doesn't apply to payments that have been missed.
"It does not do to leave a live dragon out of your calculations, if you live near him." - Tolkien
Except that with the other manufacturers, it probably has been a patent cross licensing, something that Apple has refused to do from the start.
And Apple built his iUniverse around infringing products, as it refused to license the technologies (waiting for some court to come to help)... IANAL but there is clearly a damage to the other players as Apple may not have been able to enter the market like he did should he have paid for the licences from the start... At that time, it was far from "some little money out of a big warchest"...
FRAND doesn't apply to payments that have been missed.
FRAND applies to licensing costs. Apple claims to have a license for the patents in question through their suppliers, so if anything it then becomes an issue for the courts to decide liability and, potentially, damages, not for a company to retroactively license under terms that contradict their legal and contractual obligations to standards bodies and the EU government.
Source.
Frand-type patents involve technologies that are deemed to be part of an industry standard. In this case Motorola's innovation is deemed crucial to the GPRS data transmission standard used by GSM cellular networks across the world.
Companies must offer Frand-type patents for a reasonable fee to anyone willing to pay.
Apple had previously said it would be willing to pay the fee going forward, but the two firms dispute how much Apple should pay for failing to license the technology up until now. Missed payments are not covered by the "reasonable" rule, and Motorola is able to demand a more expensive price.
"It does not do to leave a live dragon out of your calculations, if you live near him." - Tolkien
Except that with the other manufacturers, it probably has been a patent cross licensing, something that Apple has refused to do from the start.
Apple does cross license their FRAND patents which are included in the standards. They don't cross license their other patents such as UI and proprietary hardware. That's the whole point, Motorola seems to be trying to use their FRAND patents (which were included in standards only because of their promises) to leverage against Apple to get licensing to patents that aren't part of any standard. It is exactly why there are rules in the first place about how you can use patents once you agree they are to be used in a standard.
2.25%? Yeah. That's Fair and Reasonable.
Not.
I'll take some number from my butt (definitions of my butt may vary, but in this context it is random site on internet).
1.186 billion mobile broadband subscribers.
Let's say that half of these are on a 3G chip that somehow requires the Motorola 3G license: 593 million.
If these devices sell for an average of $20 we would have 11,86 billion in sales for these devices.
If Motorola wants 2.25% of the sales of these devices that would mean $297 million, a very significant number considering it is a single patent of a large portfolio of 1729 patents (yes, one thousand seven hundred and twenty nine).
Imagine if each of these patents would warrant an average licensing cost of 0.1% rather than the 2.25% that Motorola wants, then we would look at a licensing cost of more than the sales price to license 3G technology for the device. 2.25% does not smell FRAND to me, but I am no patent lawyer, I only pretend I know stuff on the internet.
I failed at copying and pasting a link, the second link that I got the number 1729 is: http://final.dime-eu.org/files/Bekkers_Martinelli_D6.pdf
So, Motorola has a money-losing phone division and some patents, most of which can't be used in a patent war. They're worth something, but not $12 billion.
Apple's "payment" was in the form of worthless UI patents, not actual money. Motorola, rightfully, demanded something that wasn't worthless.
I always thought it was amusing that the German court system would ban the sale of iPads after much of the Bundestag (the German parliament) bought them for themselves and claimed them as a work expense. They're ubiquitous now in the Bundestag... you see them in photos, one member had to pause during the speech he was reading from his iPad when it crashed, they have officially approved the device for use in reading speeches, and they made the Polish parliament (Sejm) so jealous they followed suit! They're Apple's best advertising agency in Europe.
I know, I know... classic case of left hand doing one thing and the right hand doing another... that's part of what makes it so funny.
apple didn't want a biolerplate frand agreement. They wanted their own agreement (which covered previous unlicensed use), and thats what allowed Motorola to dictate whatever terms they want. There is big money involved because if Motorola is correct apple has been infringing on their patent for multiple product generations. The money isn't just licensing for next year, but licensing/damages for the patent being used unlicensed for years and producing big profit.
apple didn't want a biolerplate frand agreement. They wanted their own agreement (which covered previous unlicensed use), and thats what allowed Motorola to dictate whatever terms they want. There is big money involved because if Motorola is correct apple has been infringing on their patent for multiple product generations. The money isn't just licensing for next year, but licensing/damages for the patent being used unlicensed for years and producing big profit.
The other way round, actually. What Apple wanted is a license under FRAND terms: You give me the license, I pay you cash. Now many companies in that business don't want these terms, they prefer: You give me a license to your patents, I'll give you a license to mine, because it is cheaper. And that's the kind of license that Motorola wanted to offer and that Apple didn't want.
And there can't be damages for any time where Motorola didn't offer a license under FRAND terms, otherwise the requirement for FRAND terms would be a joke. If I have a patent that I'm required to license to you for X dollars, I could just ask for 10 X dollars, delay an agreement for as long as possible, and then ask for X dollars in license fees and 3X dollars in damages for the time of the delay. (Obviously asking for X dollars for that time is fine).
I'm setting the over/under on the year Apple launches a military strike on a sovereign nation at 2018.
I had set it at 2019, but so much money came in on the under that I had to move the line.
I'm giving 20 to 1 that the strike is a HAARP-style weather modification attack, 12 to 1 that it's a death ray fired from a satellite and 5 to 1 that it's via an airborne flu virus modified to make the male population of the target country gay.
A straightforward predator attack with very shiny drones carved out of single pieces of aluminum is going off at even money. If you call the Pope Ratzo All-Winners Guaranteed Absolutely Free In The Money Hotline right now you can get my 100% FREE money-back guaranteed lock of the century and I'll throw in the 2003 Irish Sweepstakes Winning Numbers - IT'S GUARANTEED!!. I'm 24 and 2 against the spread and the Vegas pros call me "Mr Perfect"! Don't leave money on the table! CALL TODAY! (Not available in Virginia, Wisconsin or Rhode Island. You must be over 18. Have a gambling problem? Call 1-888-IMA-LOSR. )
You are welcome on my lawn.
How do you like them apples..
"If any question why we died, Tell them because our fathers lied."
Damn, I was really hoping Germany was going to let all parties prevail in all the lawsuits - by banning all Apple, Samsung and Motorola products at once. That would have been great.
.: Semper Absurda
... where software patents are bad, evil, etc. unless they're being used against apple.
I run: Windows, OS X, Linux, FreeBSD. Just because you have a hammer, doesn't mean everything is a nail.
Seems to be a one-way thing. When Apple files law suits against Apple competitors, other companies are not allowed to sell products that compete with Apple. There is no option to post a bond, or whatever.
But when other companies sue Apple. Apple still gets to sell Apple products.
Apple gets special treatment, that Apple competitors do not get. That is hardly a case of Apple being bit in the butt.
Yes, the patent system is broken. But Apple chose to file those bogus law suits, the broken patent system did not force Apple to file the bogus suits.
Ha. Nice try.
Apple *wishes* they could just pay cash. This would have been settled a *loooooong* time ago.
Also, you forgot to log in.
Here is my question on this: the infringement to the patent in question, from what has been reported, only applies to iPhones up to the 4, do not include the 4S because it uses a Qualcom chip instead of the previous brand Apple used. Qualcom is making chips that cellphone makers use to make phones. Since Qualcom licenses these patents from Motorola, the phone becomes immune.
This tells me that the issue should not be Apple, but the chip manufacturer. It is that chip maker that failed at licensing the patents, and then used them to make chips it then sold to Apple. Should this case not be directed at that chip manufacturer instead? It's very likely that manufacturer has other clients that are also using this unlicensed chips, so Apple cant be the only target without Motorola suddenly setting themselves up for unfair practices.
Why is the word "overturn" used in the subject?
It gives me (and a lot of people) the impression that they're "turning over or upsetting" the ban. They're not. They're only paying money to COMPLY with the court order, just like how Motorola wanted and how patents SHOULD work.
It makes it sound like the patents were invalidated; they're not.
Now, the question is: will Apple, Samsung and Motorla fight long enough to allow for a comeback of Nokia on the smartphone market?