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[2]: Apples and oranges
by oskeladden on Mon 22nd Oct 2012 20:01 UTC in reply to "RE: Apples and oranges"
oskeladden
Member since:
2009-08-05

You are missing the point of Groklaw's complaint. It's all about the amount of $$$ to be paid for said patents. While FRAND definitely defines that no one can be excluded from being granted a license, it does not define the price that should be paid.


Of course FRAND affects the price that can be charged. The 'R' in FRAND stands for 'reasonable', and imposes a binding legal obligation upon to the patent holder to only charge a reasonable royalty. Or, to put it negatively, it precludes the patent holder from charging an unreasonable royalty.

Absent such an obligation, a patent holder is free to demand as unreasonable an amount as it likes. This is why Groklaw's point is fundamentally flawed - Motorola voluntarily gave up its freedom to charge anything other than a reasonable price for its standards-essential patents when it agreed to contribute them to the relevant standard. Apple hasn't done that, because the patents in question aren't part of a defined standard. The fact that it (and, I add once more, Microsoft) are demanding unreasonable royalties on their patents is therefore absolutely irrelevant to the question of whether or not they can demand that others not charge them unreasonable royalties.

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