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.

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
Leaker Jon Prosser today shared ostensibly accurate renders of the iPhone 14 Pro, providing the most accurate look yet at what the device could look like when it launches later this year.
In the latest video on YouTube channel Front Page Tech, Prosser revealed renders of the iPhone 14 Pro made by Apple concept graphic designer Ian Zelbo, highlighting a range of specific design changes...
Amazon is marking down a wide variety of 11-inch and 12.9-inch iPad Pro models this week, with prices starting as low as $749.00 for the 11-inch tablet. You'll find the full list of sales below, all of which can be found on Amazon.
Note: MacRumors is an affiliate partner with some of these vendors. When you click a link and make a purchase, we may receive a small payment, which helps us keep...
Apple appears to have recently updated the Wallet app to allow users to add an Apple Account Card, which displays the Apple credit balance associated with an Apple ID.
If you receive an App Store or Apple Store gift card, for example, it is added to an Apple Account that was previously visible in the App Store and Apple Store apps. As of today, the Apple Account balance can also be added to...
The iPhone 14 Max is currently behind schedule by around three weeks, according to Haitong International Securities analyst Jeff Pu.
Yesterday, Nikkei Asia reported that at least one iPhone 14 model was three weeks behind schedule due to the impact of lockdowns on Apple's supply chains in China, but it was not clear which iPhone 14 model this related to. Now, Pu has clarified that the model...
Last year's iPhone 13 Pro models were the first of Apple's smartphones to come with 120Hz ProMotion displays, and while the two iPhone 14 Pro models will continue to feature the technology, their screens could well boast expanded refresh rate variability this time round.
To bring ProMotion displays to the iPhone 13 Pro models, Apple adopted LTPO panel technology with variable refresh...
Apple in February unveiled a new "Tap to Pay on iPhone" feature that will allow compatible iPhones to accept payments via Apple Pay, contactless credit and debit cards, and other digital wallets, with no additional hardware required.
Apple began testing the feature at its Apple Park Visitor Center earlier this month, and now Bloomberg's Mark Gurman has tweeted that the feature will begin...
Apple today released tvOS 15.5.1, a minor update to the tvOS operating system that first launched in September 2021. tvOS 15.5.1 comes about 10 days after the launch of tvOS 15.5. tvOS 15.5.1 can be downloaded over the air on the Apple TV through the Settings app by going to System > Software Update. Apple TV owners who have automatic software updates...
Top Rated Comments
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.
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.
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?
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.
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.
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.