Last week Apple had agreed to license patents from Motorola, but would not pay more than a dollar for each iPhone sold. Apple then filed a patent licensing lawsuit complaining that Google-owned Motorola Mobility was demanding excessive royalties for the patent licensing. The court case has now been dismissed by a judge in a U.S. court, creating another setback for Apple.
According to the BBC, Motorola was looking for 2.25 percent of the price of Apple products that use some of its patents, which is higher than the one dollar Apple was willing to pay. When companies own standard-essential patents they have to be licensed under FRAND terms (fair and non-discriminatory), but deciding on a price can be a struggle.
Then, late last week, federal court judge Barbara Crabb in Madison, Wisconsin, questioned whether she had the legal authority to hear Apple’s claims, which ultimately led to the dismissal of the case yesterday with prejudice. Apple has already filed a legal brief, arguing that she does have the authority to hear its claims, hoping the judge would reconsider the ruling.
In a court filing last week, Apple said it would “not consider itself bound by Crabb’s rate if it exceeded $1 per Apple phone” and given the company’s position on this, Crabb questioned whether or not she had the power to offer an advisory opinion. She wrote, “It has become clear that Apple’s interest in a license is qualified.”
Despite the case being dismissed, Google-owned Motorola has stated it is still open to negotiations with Apple and said, “We remain interested in reaching an agreement with Apple.”
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