Feeds

Apple's German win was really our victory, honest, says Motorola

'Years of fruitless negotiation' ending?

The Power of One Infographic

Motorola Mobility (MMI) says it has been 'vindicated' in Monday's ruling by a German appeals court, which permitted Apple to continue selling the iPhone and iPad in that country during Cupertino's appeal of a December legal victory in an Apple-MMI patent tussle.

"We believe that inventors should be paid for their innovations, and the Appellate Court in Karlsruhe, Germany has agreed," reads a statement provided to The Reg by an MMI spokeswoman.

As might be expected, MMI casts itself as the wronged party in the patent dispute, which centers on royalties due from Apple for patented wireless technology so central to the operation of 2G, 3G and Wi-Fi communication that the patents involved have been given the legal definition of "standard essential patents", meaning that MMI must make them available under FRAND (Fair, Reasonable and Non-Discriminatory) licensing or face antitrust charges.

"After years of fruitless negotiation with Apple," MMI wrote to The Reg, "Motorola Mobility was compelled to bring patent infringement proceedings and enforce a resulting injunction because Apple refused to negotiate a license agreement." MMI has been seeking FRAND royalties from Apple for over four years, we were told.

While yesterday's ruling has been regarded by some observers as a big win for Apple, Motorola Mobility sees the silver lining. "MMI's determination to collect fair compensation for Apple's use of MMI's patented technology has now been vindicated by the Appellate Court's decision," they write, "which clarified and confirmed that Apple's licensing offer to MMI in January is a contractually binding commitment to pay royalties to MMI on all of Apple's cellular devices."

MMI informs us that Apple has escrowed royalties of 2.5 per cent of German sales of its iPhones and iPads, and has offered to pay what MMI characterizes as a "reasonable royalty rate" for those devices, including the iPhone 4S, which became available in Germany and other countries on October 14 of last year.

The Karlsruhe court, MMI says, ruled that MMI is entitled to "a portion" of the royalties immediately, and if Apple and MMI remain unable to agree upon a final royalty rate, that the escrowing would continue until the courts settle the matter. We were unable to independently verify this claim.

A royalty deal will likely be forthcoming, and with it an agreement – approved by the court – that if Apple challenges the validity of any of the patents involved, MMI can cancel the deal, at which point the whole cycle can start up again.

MMI also reminded us – and we, you – that the Karlsruhe decision in no way affects the other MMI-Apple patent dust-up, which has led to Apple being forced to shut down iCloud and MobileMe push email in Germany. ®

The Power of One Brief: Top reasons to choose HP BladeSystem

More from The Register

next story
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
Sit back down, Julian Assange™, you're not going anywhere just yet
Swedish court refuses to withdraw arrest warrant
UK Parliament rubber-stamps EMERGENCY data grab 'n' keep bill
Just 49 MPs oppose Drip's rushed timetable
MPs wave through Blighty's 'EMERGENCY' surveillance laws
Only 49 politcos voted against DRIP bill
EU's top data cops to meet Google, Microsoft et al over 'right to be forgotten'
Plan to hammer out 'coherent' guidelines. Good luck chaps!
US judge: YES, cops or feds so can slurp an ENTIRE Gmail account
Crooks don't have folders labelled 'drug records', opines NY beak
Delaware pair nabbed for getting saucy atop Mexican eatery
Burrito meets soft taco in alleged rooftop romp outrage
LightSquared backer sues FCC over spectrum shindy
Why, we might as well have been buying AIR
prev story

Whitepapers

Top three mobile application threats
Prevent sensitive data leakage over insecure channels or stolen mobile devices.
The Essential Guide to IT Transformation
ServiceNow discusses three IT transformations that can help CIO's automate IT services to transform IT and the enterprise.
Mobile application security vulnerability report
The alarming realities regarding the sheer number of applications vulnerable to attack, and the most common and easily addressable vulnerability errors.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Consolidation: the foundation for IT and business transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.