Apple Offers Patent Licensing Deal to Samsung And Motorola For $5-$15 Per Android Device

Android vs iPhone

According to Dow Jones Newswire, Apple has indicated the willingness to settle the on-going patent lawsuits with Android based smartphone manufacturers such as Samsung and Motorola.

Dow Jones Newswire reports:

 The consumer-electronics company has put forth proposals to Motorola Mobility Holdings Inc. (MMI) and Samsung Electronics Co. (005930.SE, SSNHY) to settle some pending litigation in exchange for royalty payments to license its patents, among other terms, these people said.

This is not a new tactic; Apple had some discussions with companies such as Samsung before initiating litigation, according to statements made to a court in at least one suit.

Apple isn’t attempting to offer patent licenses to all its competitors or create a royalty business, one person familiar with the matter said.

According to Dow Jones Newswire, Apple has asked Samsung and Motorola to pay between $5 and $15 per handset for some of its patents. Interestingly, that works out to 1% to 2.5% of the new sales per device running Android.

However, as Dow Jones Newswire points out, Apple’s attempt to license patent would go against Steve Jobs’ wishes, who had vowed to “spend every penny” of Apple’s cash bank to “destroy Android, because it’s a stolen product”.

Apple, moreover, has more cash than its competitors and little need to seek revenue from them. The company would seem to have more incentive to hold out for court orders that could block sales of competitors’ products, or force them to modify their designs to remove features found to infringe Apple patents.

Motorola and Samsung have also filed lawsuits against Apple. In fact, Motorola has been demanding 2.25% of Apple’s iPhone sales revenue till date for its standard-essential wireless patents.

Unfortunately, we doubt these patent wars are going to end in the foreseeable future.

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  • SAiNT

    That’s how Apple will get more valueable…

  • Melvarius

    this whole thing is gettting stupid.
    could someone please just bang these money grabbing s.o.b.’s heads together.

    there is enough revenue in the mobile industry for all of them to enjoy a healthy profit margin. the whole lot of them are just being greedy fekkas.

    apple has a cheek. “it’s not fair for you to charge us 2.25% but we’ll happily charge you 2.5%.”

    I’m surprised they haven’t tried sueing lynx or windoze for using icons on a desktop screen that can be clicked on to launch a program or open a folder.
    or is that next weeks thrilling installment?

  • fas

    Put all those effort into making better trouble free devices. iPhone and Mac are having issues, the iPhone 4S does have network issues in some countries while the latest 10.7.3 update causes the Mac to crash when installing and moving files.

  • Pete

    Job’s wishes. So what! He is dead.
    Now it looks like Cook is using some commonsense.
    Paying royalties to each other for their patents is the sensible way for device manufacturers to minimize disputes and put an end to the expensive legal cases.

  • kmanvan

    lol There is so much bias and propaganda articles toward android in iphonehacks it’s ridiculous. This site only reports news about android when it’s portrayed in a negative light.

    For example; the site only reports apple vs android litigation news ONLY when it shows apple DEFENDING themselves or when they have LOST something. They won’t report a WIN unless it doesn’t show them as being EVIL. Case in point, Apple has recently won a case against Motorola/Google where the judge has ordered Google to turn over the entire android source code to Apple for reviewing. Or how about that time last year when Apple sued Samsung specifically for using “rounded corners” in their phones and tablets?

    I really hope you apple supporters out there don’t believe everything you read on this site. iphonehacks likes to pick and choose what they post about Apple. They never post “everything”.

    source 1:
    source 2:

  • Pearlzt

    Its no good if this matter carry on like this ,

    In bussines , it must have a sportif competition.

    Now from the article ,its look like apple was affraid of samsung surpassed their technology in the product ,,

    i have that feeling that some day samsung will be no.1

  • Looks to me like a first step in a probable patent-swap arrangement.

    Given Apple’s current and probable continued overwhelming dominance in the tablet market, and Microsoft’s unhappy history of litigation in many countries back when they had a similar stranglehold on the desktop OS, Apple likely sees the upside in playing nice with the phone handset patents now.