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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