Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Apple Inc. (AAPL) Offers $1 Per Unit License Fee to Motorola

Apple Inc. (NASDAQ:AAPL) has been working against Motorola Mobility in a patent lawsuit, in which Motorola has had the advantage, and has put Apple Inc. (AAPL) in a position to be forced to pay a licensing fee for use of the a patent that covers essential cellular and Wi-Fi standards – thus, a patent that could be legally “infringed” as an industry standard, but is subject to such a licensing fee.

Apple Inc. (AAPL)

Apple Inc. (NASDAQ:AAPL) just submitted documents in a court filing that said the company was willing to pay Motorola Mobility – which is now owned by Apple arch-rival Google Inc. (NASDAQ:GOOG) – a maximum of $1 per iPhone that contains this essential patent. Through the course of this litigation, which has gone one for two years, Apple Inc. (NASDAQ:AAPL) has been working from a position of strength in terms of being able to justify the current offered amount and no more.  Motorola Mobility had originally sought to claim a license fee of 2.25 percent of Apple Inc. (AAPL) revenues, which would have put the number into the billions of dollars per year, instead of a couple hundred million. Apple has a case, buoyed by the lack of evidence by Mobility to justify its own rate, much less anything more than $1 per phone, since its one primary “expert” witness, according to Apple’s brief, “cannot testify about a particular rate at trial” because the judge ruled that it “did not offer any opinion about what particular rate or range or rates would constitute a FRAND (fair, reasonable and non-discriminatory) royalty.”

This brief came in Wednesday upon a request by Motorola Mobility for clarification of Apple’s position. Looking over the brief, once could surmise that Apple Inc. (NASDAQ:AAPL) very effectively clarified its position, and will not budge. There is no timetable yet for when the judge in this case will consider the brief and rule upon it, but it does seem from court observers that Apple Inc. (NASDAQ:AAPL0 would definitely have the upper hand in this case, and this could set a standard for intellectual property going forward.  Apple Inc. (NASDAQ:AAPL) investors like billionaire fund manager Julian Robertson of Tiger Management were certainly aware of Motorola Mobility’s extensive patent portfolio, and thus may be ecstatic to see Apple Inc. (AAPL) come out of this tussle with a reasonable licensing fee.

Biotech Stock Alert - 20% Guaranteed Return in One Year

Hedge Funds and Insiders Are Piling Into

One of 2015's best hedge funds and two insiders snapped up shares of this medical device stock recently. We believe its transformative and disruptive device will storm the $3+ billion market and help it achieve 500%-1000% gains in 3 years.

Get your FREE REPORT and the details of our 20% return guarantee today.

Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.
Loading Comments...

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 102% in 3 years!! Wondering How?

Download a complete edition of our newsletter for free!