Apple Looking to Enter Patent Licensing Deals with Android Manufacturers
By on March 7th, 2012

Even though Steve Jobs expressly mentioned that he would destroy Android by waging a thermonuclear war with them if he had to, it seems that Apple’s stance has softened under the reign of Tim Cook, or at least become more rational, according to a new report.

Apple is currently suing Samsung and Motorola, two of the largest Android device manufacturers, in a bid to get injunctions on the sale of their devices in multiple countries.

However, it seems that Apple is now offering to end some pending litigation in exchange for royalty payments to license its patents. Apple is asking for around $5 to $15 per Android handset sold by these two giants, which adds up to 1% to 2.5% of their selling price.

If such a deal does go through, it could mean a significant revenue stream for Apple, generating billions of dollars in the coming years, adding to Apple’s already massive cash reserves.

Microsoft already receives a licensing fee of the same order from more than 70% of Android manufacturers.

Combining the fees for both Apple and Microsoft, the “free” Android OS could end up costing around $10 to $30, much higher than Windows Phone 7, which stands to benefit the most if manufacturers drop Android as it is currently the best alternative.

What’s ironic and hilarious is that Google may have to foot the bill for Motorola’s patent troubles, when its primary intention behind acquiring Motorola was to alleviate its own.

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Author: Pathik Google Profile for Pathik
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Pathik has written and can be contacted at pathik@techie-buzz.com.

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