I've seen some hyperbolic statements on Google/Motorola/Samsung vs. Apple FRAND patent litigation recently, as if such tactics were unprecedented, and the amounts asked scandalous. I would suggest every person who is getting emotional in the Apple-Android dispute to have a look at this document on 4G FRAND patents:
It gives some context: Audiences can expect to see the same licensing challenges that first appeared in GSM (2G) and which re-appeared in UMTS (3G) starring again in LTE (4G). The plot is essentially the same: lots of essential patents and many different patent holders.
And an interesting quote from Motorola (undated, accessed in 2009):
Motorola expects that its essential patent royalty rate for LTE systems and equipment will be approximately 2.25 percent.
I'll leave to the courts to decide if this is an appopriate royalty rate for an iPhone. Note that there is a trend of declining rates: Qualcomm used to collect between 4% and 5% of the sales price for FRAND patent royalties[1]. This has since declined to about 3% [2]. As for court actions, Nokia settled with Apple in 2011[3] over FRAND patents[4] for €800m. Apple would also pay Nokia €8 per device, equivalent to 1.75% of the sales price.
That being said, I agree that injunctions should not be granted on FRAND patents. I can't imagine a case where it makes sense.
http://www.investorvillage.com/uploads/82827/files/LESI-Roya...
It gives some context: Audiences can expect to see the same licensing challenges that first appeared in GSM (2G) and which re-appeared in UMTS (3G) starring again in LTE (4G). The plot is essentially the same: lots of essential patents and many different patent holders.
And an interesting quote from Motorola (undated, accessed in 2009):
Motorola expects that its essential patent royalty rate for LTE systems and equipment will be approximately 2.25 percent.
I'll leave to the courts to decide if this is an appopriate royalty rate for an iPhone. Note that there is a trend of declining rates: Qualcomm used to collect between 4% and 5% of the sales price for FRAND patent royalties[1]. This has since declined to about 3% [2]. As for court actions, Nokia settled with Apple in 2011[3] over FRAND patents[4] for €800m. Apple would also pay Nokia €8 per device, equivalent to 1.75% of the sales price.
That being said, I agree that injunctions should not be granted on FRAND patents. I can't imagine a case where it makes sense.
[1] http://www.sramanamitra.com/2007/05/22/iphone-and-the-future...
[2] http://www.forbes.com/sites/greatspeculations/2011/01/21/qua...
[3] http://www.guardian.co.uk/technology/2011/jun/14/apple-nokia...
[4] http://www.scribd.com/doc/28285432/Nokia-s-Motion-to-Dismiss...