Apple has told a Wisconsin court that it is willing to pay Google’s Motorola Mobility division to license standard-essential wireless patents, but it will only pay up to $1 per iPhone sold.
The admission by Apple marks the first time the company has indicated it would license standard-essential patents from Motorola, according to Florian Mueller of FOSS Patents. Apple said that if the court sets a FRAND rate at or below $1, the company will take a license and start paying Motorola immediately.
However, if the court sets a higher royalty rate, Apple has indicated that it will appeal the decision and make it more difficult for Motorola to collect the royalties.
The Apple filing reads:
“Motorola cannot offer evidence at this trial that the rate should be higher than $1 per phone, but to the extent the Court sets the rate higher than $1 per unit, Apple reserves the right to exhaust all appeals, and needs also to reserve the right available to any party offered a license: the right to refuse and proceed to further infringement litigation. Make no mistake, that is not an outcome Apple desires.”
The detail emerge five days before the start of the FRAND contract trial in the Western District of Wisconsin. Apple says it intends to employ expert testimony and “copious real-world evidence” to establish a ceiling for the FRAND rate Motorola should charge for the portfolio.
Motorola is seeking 2.25% of Apple’s sales, a significantly higher amount than Apple says it is willing to pay.