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Motorola sought lucrative royalty on iPhone, iPad sales

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By Charles Starrett

Contributing Editor
Published: Tuesday, February 7, 2012
News Categories: iPad, iPhone

Motorola asked Apple to pay a potential royalty of 2.25 percent of sales for some iPhones and iPads last year, according to a new report. Citing a letter filed in a California court last month, the Wall Street Journal reports that Motorola had “demanded” the royalty for a license of its patents. According to the report, some consider the royalty—which would have accounted for more than $1 billion based on iPhone sales in 2011 alone—to be rather pricey, with IP consultant Florian Mueller saying that the high rate was likely offered only because Motorola is required to offer licenses on its industry-standard patents. “[Motorola] wants Apple to refuse it so they can pursue injunctions against Apple,” said Mueller. Notably, the letter does not specify which devices would be affected nor whether such an agreement would be retroactive.

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