Linked by Thom Holwerda on Mon 22nd Oct 2012 13:36 UTC
Legal "One of the exhibits Samsung has now made public tells an interesting tale. It's the slide presentation that Apple showed Samsung when it first tried (and failed) to get Samsung to license Apple's patents prior to the start of litigation. While some of the numbers were earlier reported on when the exhibit was used at trial, the slides themselves provide more data - specifically on the difference between what Apple wanted Samsung to pay for Windows phones and for Android phones. The slides punch huge holes in Apple's FRAND arguments. Apple and Microsoft complain to regulators about FRAND rates being excessive and oppressive at approximately $6 per unit, or 2.4%; but the Apple offer was not only at a much higher rate, it targeted Android in a way that seems deliberately designed to destroy its ability to compete in the marketplace." Eagerly awaiting the 45 paragraph comment explaining how this is completely fair and not hypocritical at all. Bonus points if it includes something about Eric Schmidt being on Apple's board, and, double bonus point if it mentions one of the QWERTY Android prototypes. Mega Epic Bonus if it somehow manages to draw a line from Edison, Tesla, to Jobs.
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RE: Apples patents are not FRAND
by Thom_Holwerda on Mon 22nd Oct 2012 15:03 UTC in reply to "Apples patents are not FRAND"
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The difference between FRAND and non-FRAND is one of the things that isn't particularly broken about the patent system.

It actually is a broken aspect - because it only works if the playing field is level.

So far, the mobile industry has worked on what is essentially a patent sharing scheme. The mobile phone companies would license each other patents - FRAND or not - to push the industry forward. If you had lots of valuable non-FRAND patents, you could get a discount on the FRAND patents from e.g. Nokia if you licensed those non-FRAND patents back to Nokia.

Up until Apple joined the industry, this worked fine. However, Apple had no interest in this reciprocal system, and instead, profited massively off FRAND patents - without signing license agreements, I might add, they just took them - while refusing to give back its own patents, while AT THE SAME TIME demanding the same treatment as other companies that DID share their patents.

This is CLEARLY not in the spirit of what the FRAND licensing system in the industry had been about up until that point. We now see the system budging and crumbling, because suddenly, crappy software and design patents are now infinitely more valuable than cold and hard FRAND hardware patents - patents for a standard that took massive amounts of time, investment and work to design, implement, and spread across the globe. The effort it took to get GSM, 3G, and associated technology working is of such an immense magnitude it's hard to fathom. Bouncy scrolling and rounded corners fall into more than insignificance here.

There would be no mobile phone - smart of not - without Motorola and Nokia. We'd still have phones - feature and smart - without Apple. Yet, it's Apple's patents that are worth the most. Do you see how unfair that is?

So no, the FRAND system is no longer working - because a new player decided to misbehave itself.

Edited 2012-10-22 15:05 UTC

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