Apple Proposing Settlements in Android Device Patent Disputes, Would Reap &

[+Frank B. Subscriber²]

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.

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 pursing 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.

Source: Mac Rumors

[Boz]

It's more PR than anything. They are batsh** crazy if they think anyone will be paying them $5-$15 per Android device. For what? Rounded corners and slide to unlock? LOL..

If anything they should be paying Google for ripping off most of the new features in iOS.

[Rudy]

It's more PR than anything. They are batsh** crazy if they think anyone will be paying them $5-$15 per Android device. For what? Rounded corners and slide to unlock? LOL..

If anything they should be paying Google for ripping off most of the new features in iOS.

You do realise that most Android phone makers already pay MS around $15-20/phone right?

[Boz]

You do realise that most Android phone makers already pay MS around $15-20/phone right?

No they don't pay as much.. I believe it's $6-$10 per handset and HTC might be paying $15 but they get a bunch of other patents from MS as well, not to mention that Android manufacturers have deals with Microsoft for Windows Phone 7 so it kind of equalizes so they end up paying pretty much nothing. And MS patents are actually somewhat valid and the arrangement was made from the beginning and even this was not because of Android, but because of HTC and some others using specific MS patents that are on top of Android.

Apple on the other hand has zero case. Don't know who's gonna be nuts to pay them anything. As I said, they should be paying others not the other way around.

[BoredBozirini]

I hope they get it, only more cash for the stocks.

[Raa]

I hope they refuse. Let the Android manufacturers sue the pants off Apple. If Apple are trying to come to the table now, they're worried. VERY worried.