Google pushing for Motorola's iPhone royalties
9th Feb 2012 | 13:15
Buy-out to be finalised next week?
Google has no qualms over Motorola asking for 2.25% royalties from each iPhone sold as a result of a patent squabble.
A letter from the search giant to the Institute of Electrical and Electronics Engineers (IEEE) explains that its acquisition of Motorola should be completed next week, and as such it will stand by any and all patent licensing in place.
The letter explains that Google will honour Motorola's "maximum per-unit royalty of 2.25% of the net selling price for the relevant end product on a go-forward basis."
Apple has been in a spot of bother over some patents owned by Motorola that a court has ruled are used in most of its iPhone and iPad models, and Motorola has requested 2.25 per cent of each device sale in royalties.
It may sound like a small number but Apple isn't happy about it, claiming that other licensees aren't charged such a high rate.
The problem comes from Motorola's request for a percentage of the net selling price of an iPhone, rather than the value of the relevant hardware that infringes on the patent, something that patent expert Florian Mueller describes as "absolutely out of step with… industry practice".