Apple v Google: US judge dismisses patent lawsuit

Apple and Samsung phones Apple is involved in patent disputes with various rivals across the globe

Related Stories

A US judge has dismissed Apple's case in which it alleged that Google's Motorola unit was seeking excessive royalty payments for patents.

Motorola has sought 2.25% of the price of Apple products that use some of its patents, which Apple said was too high.

Last week, Motorola asked the court to set a price but Apple said it would not pay more than $1 (£0.60) per device.

Firms that own industry-essential patents are expected to offer them under fair licensing terms.

Motorola said it was still open to negotiations with Apple and was interested in reaching an agreement.

"Motorola has long offered licensing to our extensive patent portfolio at a reasonable and non-discriminatory rate in line with industry standards," the firm said in its statement.

'Subjectivity and assumption'

Start Quote

It is very tough to determine what a fair price is of any patent held by a firm”

End Quote Andrew Milroy Frost & Sullivan

Google finalised its purchase of Motorola Mobility earlier this year for $12.5bn (£7.9bn).

The deal was Google's biggest acquisition ever and gave it access to more than 17,000 of Motorola's valuable patents.

While the firm is required to offer industry-essential patents at terms that are "fair, reasonable, and nondiscriminatory" or Frand for short, analysts said it was difficult to determine what a reasonable royalty was.

"It is very tough to determine what a fair price is of any patent held by a firm," Andrew Milroy of Frost & Sullivan told the BBC.

"There are complex financial models that are used to evaluate it - but there is a lot of subjectivity and assumption that goes into those.

"It can hardly be described as a science."

Meanwhile, some analysts said the dismissal of the case was a major setback for Apple as it was likely to give Motorola an upper hand in negotiations.

"This puts Apple back into the position it was before," said Lea Shaver, an intellectual property professor at Indiana University School of Law,

More on This Story

Related Stories

The BBC is not responsible for the content of external Internet sites

More Business stories

RSS

Features & Analysis

  • An ant and a humanAnts v humans

    Do all the world's ants really weigh as much as all the humans?


  • Tattooed person using tabletRogue ink

    People who lost their jobs because of their tattoos


  • Indian coupleSuspicious spouses

    Is your sweetheart playing away? Call Delhi's wedding detective


  • Civilians who had been hiding inside during gun battles manage to flee  from the Westgate Mall in Nairobi, Kenya Saturday, 21 September 2013Westgate's questions

    One year on, Kenyans await answers about the mall attack


Elsewhere on the BBC

  • GeoguessrWhere in the world...?

    Think you are a geography expert? Test your knowledge with BBC Travel’s interactive game

Programmes

  • StudentsClick Watch

    Could a new social network help tailor lessons to students’ needs and spot when they fall behind?

BBC © 2014 The BBC is not responsible for the content of external sites. Read more.

This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.