Originally Posted by TBell
I read the article and I didn't take it to mean what you suggest. It says Nokia had been paying a 3% royalty on WCDMA equipped handsets. But that doesn't say the 3% is on the retail price of the phone as opposed to the price of the Qualcomm chip in the phone. Based on the shear number of licensed patents in the product, I can guarantee it is on the price of the Qualcomm chip.
Based on what, your "gut feeling"? Wouldn't it be more reliable and appropriate to go by what Qualcomm themselves state very clearly in their Patent Licensing Statement:
"Consistent with the industry-accepted principles of FRAND described above and the
value of Qualcomm’s standards essential LTE and WiMax patent portfolios established
through bilateral, arms-length negotiations culminating in Qualcomm’s existing
LTE/WiMax license agreements, Qualcomm expects that it will charge royalties for a
license under its standards essential LTE patents and/or standards essential WiMax
patents for complete, end user subscriber devices that implement LTE and/or WiMax
standards, but do not implement any 3G CDMA standards, of approximately 3.25% of
the wholesale selling price of each such device, subject to reciprocity and other standard
terms and conditions"
I don't think anyone would consider a chipset to be a "complete, end-user subscriber device".
Now is it possible Motorola unfairly or even illegally singled out Apple as not license-able thru an agreement with Qualcomm, forcing them to negotiate with Moto directly? Yes it is. So far all we've seen is an Apple claim that might be what occurred. Once the case plays out then the facts will be more clear. That assumes the parties don't settle before then as the Nokia case did.
EDIT: I meant to mention that I thought Qualcomm's valuation of end-user devices is based on the complete Bill of Materials (BOM) rather than a wholesale selling price. So in Apple's case they might be paying $8 (3.25% of $245) on a 64GB iPhone 4S. If they're truly going by the wholesale price they might be getting $20 in royalties on that 4S. Motorola would only be asking for about $13 on the same basis, but Qualcomm would likely still want licensing fees for the remainder of the SEP package, making it probably much more expensive for Apple overall.
Edited by Gatorguy - 8/13/12 at 7:23pm