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[4]: Apples and oranges
by oskeladden on Tue 23rd Oct 2012 19:25 UTC in reply to "RE[3]: Apples and oranges"
oskeladden
Member since:
2009-08-05

Reasonable does not mean that the licensee gets to choose the price. Reasonable can be a billion USD and unreasonable can be 10 USD. It's not defined, as their FRAND commitments don't define what is reasonable.(Remember that Apple and Nokia had exactly the same issue)

Actually, 'reasonable' is a term with a very clear meaning in law - it's chief significance is that it imposes objective limits on what a licensor can charge (i.e., a licensor cannot charge what he subjectively decides he wants to charge). There's been quite a lot written on how it'd operate to restrict the scope of what a licensor can demand in relation to a patent subject to FRAND licensing requirements. The consensus among lawyers who work in the area is that it'd be much more restrictive than the 'Georgia-Pacific standard', (which is based on 15 factors, and used to assess damages for infringement in non-FRAND cases). This is because reasonableness must be judged in relation to the relative contribution and importance of the patent to the overall standard, not in the abstract, and because of the requirement that the royalty be non-discriminatory.

There isn't any FRAND-specific case law, because never before in the history of standard-setting has any organisation sought to use FRAND patents as a weapon against a competitor. But the legal principles are nevertheless very clear. I can recommend some articles in law journals if you're interested (and have access to a law library).

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