Apple Proposing Settlements in Android Device Patent Disputes, Would Reap $5-15 Per Android Device

Dow Jones Newswires reports that Apple has expressed a willingness to settle some of its patent disputes with manufacturers of Android-based handsets such as Samsung and Motorola, potentially seeking to reduce the burden of ongoing litigation.

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, [people familiar with the matter] 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.

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But Samsung and Motorola are not likely to be willing to agree to such settlements at face value, with Apple reportedly proposing that its competitors pay a $5-15 licensing fee to Apple for each Android handset sold.

Apple, of Cupertino, Calif., has asked for between $5 and $15 per handset for some of its patents in one negotiation, or roughly 1% to 2.5% of net sales per device, another person familiar with the matter said. Motorola, for its part, has been criticized for asking for 2.5% of net sales per device for its wireless patents from Apple.

The report notes that any settlements would appear to go against Steve Jobs' desires, as he expressed in his biography that he wished "destroy Android" even if it required "every penny" of Apple's cash hoard. Apple's cash position and domination of mobile phone industry revenues also mean that the company has less of a need to settle for royalty payments from its competitors.

Apple's competitors are of course pursuing their own actions against the company, which each side hoping to use leverage from their lawsuits to gain more favorable terms in any settlement talks.

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Top Rated Comments

Peace Avatar
160 months ago
This is just a tit for tat maneuver by Apple.

If Moto wants to charge 2.5% then Apple wants 2.5%

This is actually funny .
Score: 21 Votes (Like | Disagree)
Bradllez Avatar
160 months ago
Great. Another effort. Just settle these all, please.
I think we both know that these will never end.
Score: 15 Votes (Like | Disagree)
Stridder44 Avatar
160 months ago
Hah, they're just going back and forth. "You want this amount? Okay, we want an equal amount from you." Of course it'll be shot down (as it should), but still, this is pretty funny.


(I know, I know...down-vote me if it makes you feel big and special...it really hurts.)
I think people are more enticed to downvote you when you put crap like this at the bottom of all your posts.
Score: 14 Votes (Like | Disagree)
dwman Avatar
160 months ago
I know I'm going to get severely down ranked for this, but the Android battle seemed to be SJ's personal war. He lost to MS and didn't want to lose again in the mobile space and felt betrayed by Eric Schmidt. Fair enough.

But he's gone and it's time to move forward. Make a deal for $5/handset or whatever and get back to the business of innovating. Consumers are ultimately the ones that lose in these patent battles. Look at Google Maps...hasn't been updated on the iPhone since 2008.
I can certainly appreciate defending your work especially if you feel it's been pilfered by another company. I'm hopeful Tim Cook is a little more willing to talk to Google and settle this once and for all.
Score: 13 Votes (Like | Disagree)
ArcaneDevice Avatar
160 months ago
This is just a tit for tat maneuver by Apple.

If Moto wants to charge 2.5% then Apple wants 2.5%

This is actually funny .
And then Android will want something from Apple for use of the notification center and it will all work out that everyone will be owning parts of each others company and the technology world will coalesce into one giant mass which will unite under the Skynet banner and kill humanity.

Or lawyers will just get even richer. Whichever.
Score: 12 Votes (Like | Disagree)
BaldiMac Avatar
160 months ago
And then Android will want something from Apple for use of the notification center and it will all work out that everyone will be owning parts of each others company and the technology world will coalesce into one giant mass which will unite under the Skynet banner and kill humanity.

Or lawyers will just get even richer. Whichever.

That'll be the next lawsuit we'll see. Notification Center that is...not a Skynet lawsuit :p

I'd actually have to support Android from that front as its VERY obvious that Notification Center is a copy of the Android notification center.

(Note to fans: Seriously...look at the two instead of down voting for once and see it, its as plane as the nose on your face.)

Unless the iOS notification center violates a patent, what exactly would Google be suing over? Copying ideas isn't necessarily against the law.
Score: 11 Votes (Like | Disagree)