Apple Offering Samsung and Motorola an Olive Branch

Discussion in 'Android News' started by cereal killer, Mar 6, 2012.

  1. cereal killer
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    cereal killer DF Administrator Staff Member

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    We thought we were done with the patent lawsuits for today (silly us!) We can't say we promise this will be the last one today, but we sure are hoping this is the case. Apple is now offering an olive branch to settle some pending litigation in exchange for royalty payments to license its patents. It appears Samsung and Motorola Mobility are on the receiving end of the settlement. According to one person familiar with the matter, Apple is not seeking a royalty business, nor are they offering patent licenses to all its competitors. So there goes the notion that they are purely seeking financial gain. The Cupertino company has asked for between $5 and $15 per handset for some of its patents in one negotiation, a source close to negotiations has said. That equates to 1%-2.5% of net sales per device. Earlier, Motorola was criticized for asking for 2.5% of net sales per device for its wireless patents from Apple. Pot meet Kettle, we'd have to say on this one.

    No one could confirm if settlement talks are currently taking place, but they did say this is part of an ongoing process. We wonder if Steve Jobs is rolling over in his grave right now. He vowed to destroy Android, and this "settlement" certainly goes against his wishes. In case you forgot, Mr Jobs said "I’m going to destroy Android, because it’s a stolen product. I’m willing to go thermonuclear war on this."

    Perhaps they see this is as their way out of the sure mess that will ensue if they continue on this destructive and costly path of constant patent suits. Continuing to pursuit the shutting down and killing of Android is simply becoming impractical. This story is getting more interesting. Is it a sign of Apples weakening resolve, or is Apple leaving a way out for it's competitors?

    Source: nasdaq
  2. kodiak799
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    kodiak799 Silver Member

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    Might be more of a white flag than an olive branch. Apple is sweating bullets over a Google/Moto combination. Not to mention we've recently learned that Google has some major pending patents (such as drop-down notification). Apple is about to start tasting its own cooking and it seems they are already trying to "refund" their lunch before the first course arrives.
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  3. OneTenderRebel
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    OneTenderRebel Silver Member

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    Could be but also something to think about, android already pays Microsoft quite a bit per handset now if they have to pay Apple too that could be far more of a financial blow than any current set of lawsuits.

    To be or not to be........................wait what was the question? This signature has been Tapatalk approved.
  4. kodiak799
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    kodiak799 Silver Member

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    True. But MS doesn't really have much of a horse in the race at this point. Apple does and will pay its share of licensing fees, as well. Basically just money passed back-and-forth with the lawyers getting a cut as intermediary.

    I think the only explanation for the apparent sudden reversal is Apple sees Google/Moto putting bullets in their gun and realizes the other side is about to start shooting back. Attempting to cover their flank while also keeping Google/Moto in their sights. Me thinks Apple is realizing you don't want to be the Germans fighting on multiple fronts.
  5. bazar6
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    bazar6 Premium Member Theme Developer Premium Member

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    It's a pretty good move, I'm surprised they did it tho. It's instant gratification (drops the patent suits, and start making money) and long term gratification (they make that "obscene" amount of money on every handset they don't have to sell)... Could also be seen as weakness and a sign of lack of confidence in their case to sway the courts their way. Offering this gets them a guaranteed income, whereas waiting to see what the court says in a few years is no income and spending money on lawyers, and possibility of a complete and total loss.
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  6. chrom3
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    chrom3 New Member

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    They need it to pay lawyer fees at this point.

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