Apple Pushes for Clarification on Licensing of FRAND Patents

Dow Jones Newswires reports that Apple filed a letter with the European Telecommunications Standards Institute (ETSI) last November pushing for clarification on how standards-essential patents are intended to be licensed. These standards-essential patents are currently required to be licensed under fair, reasonable and non-discriminatory (FRAND) terms in order to promote competition in the marketplace, but Apple claims that there is too much confusion in the industry about how such licensing should be handled.

Apple said in its letter--which was dated Nov. 11, but not previously disclosed--that the lack of clarity on what is fair, reasonable and nondiscriminatory has led many companies to ask unusually high rates and sue one another claiming they infringed on one another's patents.

"It is apparent that our industry suffers from a lack of consistent adherence to Frand principles in the cellular standards arena," wrote Bruce Watrous, Apple's intellectual property head.

Apple has requested that the ETSI set "appropriate" royalty rates for FRAND patents in the wireless industry in order to help companies compete on a relatively even field with a clearer understanding of the costs involved in competing in the market. The company has also requested that FRAND patents not be used as the basis for requests for injunctions that would remove products from the market, given that those patents are intended to be licensed and that any negotiation roadblocks are related to the details of that licensing.

Apple certainly has a vested interest in seeing simplified FRAND patent licensing terms, given that it was a relatively late entrant into the mobile phone industry where the vast majority of patents covering the basic technologies are owned by other companies. While Apple has primarily relied on claims of design infringement and specific user interface functionalities in its efforts to block smartphone sales by its competitors, it has been the target of lawsuits based on more fundamental inventions.

apple motorola logos
In one example, Apple briefly pulled all of its 3G-capable iOS devices with the exception of the iPhone 4S from its German online store last week in the wake of a victory by Motorola Mobility in the ongoing patent dispute between the two companies.

That injunction was quickly suspended pending Apple's appeal of the ruling, with Apple arguing that the patents in question are subject to FRAND licensing requirements that are not being met by Motorola. Apple claims that Motorola has "demanded" a royalty rate of 2.5% to license the patent, a figure that would have resulted in Motorola receiving roughly $1 billion from Apple in 2011.

Popular Stories

iOS 26

15 New Things Your iPhone Can Do in iOS 26.2

Friday December 5, 2025 9:40 am PST by
Apple is about to release iOS 26.2, the second major point update for iPhones since iOS 26 was rolled out in September, and there are at least 15 notable changes and improvements worth checking out. We've rounded them up below. Apple is expected to roll out iOS 26.2 to compatible devices sometime between December 8 and December 16. When the update drops, you can check Apple's servers for the ...
ios 18 to ios 26 upgrade

Apple Pushes iPhone Users Still on iOS 18 to Upgrade to iOS 26

Tuesday December 2, 2025 11:09 am PST by
Apple is encouraging iPhone users who are still running iOS 18 to upgrade to iOS 26 by making the iOS 26 software upgrade option more prominent. Since iOS 26 launched in September, it has been displayed as an optional upgrade at the bottom of the Software Update interface in the Settings app. iOS 18 has been the default operating system option, and users running iOS 18 have seen iOS 18...
iOS 26

Apple Seeds iOS 26.2 and iPadOS 26.2 Release Candidates to Developers and Public Beta Testers

Wednesday December 3, 2025 10:33 am PST by
Apple today seeded the release candidate versions of upcoming iOS 26.2 and iPadOS 26.2 updates to developers and public beta testers, with the software coming two weeks after Apple seeded the third betas. The release candidates represent the final versions of iOS 26.2 and iPadOS 26.2 that will be provided to the public if no further bugs are found during this final week of testing....
Intel Inside iPhone Feature

Apple's Return to Intel Rumored to Extend to iPhone

Friday December 5, 2025 10:08 am PST by
Intel is expected to begin supplying some Mac and iPad chips in a few years, and the latest rumor claims the partnership might extend to the iPhone. In a research note with investment firm GF Securities this week, obtained by MacRumors, analyst Jeff Pu said he and his colleagues "now expect" Intel to reach a supply deal with Apple for at least some non-pro iPhone chips starting in 2028....
Photos App Icon Liquid Glass

John Gruber Shares Scathing Commentary About Apple's Departing Software Design Chief

Thursday December 4, 2025 9:30 am PST by
In a statement shared with Bloomberg on Wednesday, Apple confirmed that its software design chief Alan Dye will be leaving. Apple said Dye will be succeeded by Stephen Lemay, who has been a software designer at the company since 1999. Meta CEO Mark Zuckerberg announced that Dye will lead a new creative studio within the company's AR/VR division Reality Labs. On his blog Daring Fireball,...
iOS 26

When Will Apple Release iOS 26.2?

Monday December 1, 2025 4:37 pm PST by
We're getting closer to the launch of the final major iOS update of the year, with Apple set to release iOS 26.2 in December. We've had three betas so far and are expecting a fourth beta or a release candidate this week, so a launch could follow as soon as next week. Past Launch Dates Apple's past iOS x.2 updates from the last few years have all happened right around the middle of the...
maxresdefault

iPhone Fold: Launch, Pricing, and What to Expect From Apple's Foldable

Monday December 1, 2025 3:00 am PST by
Apple is expected to launch a new foldable iPhone next year, based on multiple rumors and credible sources. The long-awaited device has been rumored for years now, but signs increasingly suggest that 2026 could indeed be the year that Apple releases its first foldable device. Subscribe to the MacRumors YouTube channel for more videos. Below, we've collated an updated set of key details that ...
ive and altman

Jony Ive's OpenAI Device Barred From Using 'io' Name

Friday December 5, 2025 6:22 am PST by
A U.S. appeals court has upheld a temporary restraining order that prevents OpenAI and Jony Ive's new hardware venture from using the name "io" for products similar to those planned by AI audio startup iyO, Bloomberg Law reports. iyO sued OpenAI earlier this year after the latter announced its partnership with Ive's new firm, arguing that OpenAI's planned "io" branding was too close to its...
iphone air camera

iPhone Air's Resale Value Has Dropped Dramatically, Data Shows

Thursday December 4, 2025 5:27 am PST by
The iPhone Air has recorded the steepest early resale value drop of any iPhone model in years, with new data showing that several configurations have lost almost 50% of their value within ten weeks of launch. According to a ten-week analysis published by SellCell, Apple's latest lineup is showing a pronounced split in resale performance between the iPhone 17 models and the iPhone Air....
iPhone 17 Pro Cosmic Orange

iPhone 17 Pro Lost a Camera Feature Pro Models Have Had Since 2020

Thursday December 4, 2025 5:18 am PST by
iPhone 17 Pro models, it turns out, can't take photos in Night mode when Portrait mode is selected in the Camera app – a capability that's been available on Apple's Pro devices since the iPhone 12 Pro in 2020. If you're an iPhone 17 Pro or iPhone 17 Pro Max owner, try it for yourself: Open the Camera app with Photo selected in the carousel, then cover the rear lenses with your hand to...

Top Rated Comments

Torrijos Avatar
180 months ago
One thing I don't understand is how the licensing fees aren't part of the chips built to use the standards (Qualcomm chips right).

How come the percentage is calculated on the total sum of the device?

Say Apple build its phones in gold and sapphire, the percentage due to the FRAND licenses owners shouldn't benefit from others design choices...

It should be like a constant fee, that why it would seem more logical for it to be part of the price of the components created to employ the standard.
Score: 17 Votes (Like | Disagree)
vrDrew Avatar
180 months ago
Why is still people using that absurd analogy?

Why is that absurd?

The iPhone has all sorts of functionality built into it beyond its ability to access wireless networks. You can build a 3G-enabled dumb phone for less than $30 in costs, whereas the iPhone has a BOM cost of more than $300 - most of which has to do with things like the touchscreen; camera; case; and battery. Why does Motorola take a whack at those costs?

The important thing about FRAND is that it implies the royalties be a) reasonable and b) non-discriminatory. Motorola basing their demands on the cost of the entire device essentially discriminates against manufacturers who put extra functionality into their products. Thats what stifles innovation.
Score: 16 Votes (Like | Disagree)
nagromme Avatar
180 months ago
This isn’t the latest info, but as of about a year ago, Apple was the most-sued tech company—and that wave of attacks on Apple began with the iPhone in 2008:

http://www.tomshardware.com/news/lawyers-lawsuit-legal-steve-jobs,11721.html

So Apple’s the bully?

Of course, the number of suits isn’t important, it’s the merits. Hard to judge for armchair lawyers (who exactly was sued for nothing more specific than a “rectangle”?) but:

1. Are others abusing FRAND to attack Apple? If so, that’s wrong.

2. Did others re-use designs (and more importantly, underlying tehcnologies—it’s not just about cloning looks) that were never seen on Earth before Apple? Is that somehow mere coincidence or is it others profiting from Apple’s work?

3. If Apple’s designs are the “only way” to make a tablet/phone/touch OS/whatever, then why were they never seen before the iPhone/iPad?

4. Everyone copies/borrows, and that’s often a good thing. But is any amount of copying always OK, or is there a limit to what Apple should accept, if they have legal grounds?

5. Did Apple in fact invent some useful things with the iPhone? Would Android devices truly exist in anything like their current form without Apple to copy? (Android started as a BlackBerry clone, a heritage still seen in sluggish graphical performance.)

6. Did Apple really create the current business reality (which is nothing new) where companies use IP against each other? Could they choose not to play the game and just sit back and let themselves be sued, or do they have to play the game the same as their competitors?

And most importantly:

7. Wouldn’t we love to see the innovations and choice that would happen if more companies innovated, and fewer copied Apple? What if Samsung, for instance, was like Microsoft/Metro? Instead of parroting Apple right down to the packaging, the charging brick, and the me-too addition of white faceplates, we’d have something more unique/new in the market! Isn’t THAT a better kind of competition?
Score: 15 Votes (Like | Disagree)
gnasher729 Avatar
180 months ago
That guy is making a tablet and it's a rectangle! SUE THIS GUY TO OBLIVION.

Nobody has ever been sued for making a tablet that is a rectangle. There are plenty of people making that ridiculous claim, but that doesn't make it true.
Score: 15 Votes (Like | Disagree)
Kaibelf Avatar
180 months ago
Why is still people using that absurd analogy?

People "is" making a sound analogy there. Motorola isn't entitled to a certain percentage of a finished product, they are entitled to a flat fee like everyone else, especially with FRAND.
Score: 14 Votes (Like | Disagree)
vrDrew Avatar
180 months ago
One of the most important arguments raised in Apple's letter is the call for a common royalty base.

Motorola (and Samsung) are basing their demands for royalties on the cost of the entire device, not just the part that utilizes their communications functionality. This is absurd. Are they going to ask for 2.25% of the cost of a $60,000 automobile that has an on-board navigation and computer system?

People make all sorts of claims that Apple is guilty of "stifling innovation." If anyone is guilty of such behavior it is the Samsungs and Motorolas of the world.
Score: 12 Votes (Like | Disagree)