Technology giants Apple Inc. (NASDAQ:AAPL) and Google Inc (NASDAQ:GOOG) mobile subsidiary, Motorola Mobility Holdings Inc (NYSE:MMI) are discussing the possibility of resolving some of their patent disputes related to smartphone technology through arbitration, according to the report from Bloomberg.
Based on Apple’s court filing, the company is exchanging proposals with Google to reach a licensing agreement over Motorola’s standard-essential wireless patents using a binding arbitration.
According to Apple Inc. (NASDAQ:AAPL), an agreement on the standard-essential patents might lead to a global settlement on all of its patent disputes with Google. In a court filing, the Cupertino-based iPhone and iPad maker wrote, “Apple is also interested in resolving its dispute with Motorola completely and agrees that arbitration may be the best vehicle to resolve the parties’ dispute.”
Earlier this month, Motorola Mobility Holdings Inc (NYSE:MMI) stated that it remains open in resolving its patent dispute with Apple after presiding Justice Barbara Crabb, of the Western District Court of Wisconsin dismissed the breach-of-contract case filed by Apple against its rival. Apple accused Motorola of taking advantage of its standard-essential patents to demand unreasonable royalties.
Google’s spokesperson previously said, “We’re pleased that the court has dismissed Apple Inc. (NASDAQ:AAPL)'s lawsuit with prejudice. Motorola has long offered licensing to our extensive patent portfolio at a reasonable and nondiscriminatory rate, in line with industry standards. We remain interested in reaching an agreement with Apple.”
Motorola Mobility submitted a motion for guidance asking the court to determine the terms of the license agreement and demanded Apple to accept it. Apple Inc. (NASDAQ:AAPL) responded to the motion with a condition that it would only accept the license agreement if the royalty for the standard-essential patents will not exceed $1.00. Apple’s response prompted the judge to dismiss the case citing “the case cannot proceed on remaining issue.”
Last November 13, Google Inc (NASDAQ:GOOG)'s general counsel Kent Walker sent a letter to Apple, which reads, “We have long sought a path to resolving patent issues and we welcome the chance to build on the constructive dialogue between our companies. While we prefer to seek a framework for a global (rather than piecemeal) resolution that addresses all of our patent disputes, we are committed to reaching agreement on a license for our respective standard-essential patents.”
Prior to Walker’s letter, Bruce Sewell, general counsel for Apple Inc. (NASDAQ:AAPL) emphasized its objective with Google Inc (NASDAQ:GOOG) in a letter date November 8. He wrote, “Apple’s goal has always been to find a mutual and transparent process to resolve this dispute on terms that are fair, reasonable and non-discriminatory without the threat or taint of exclusionary remedies.
Judge Crabb emphasized in her opinion during a pretrial on the dismissed case that Apple Inc. (NASDAQ:AAPL) is “entitled to a license of Motorola’s patents on fair, reasonable, and nondiscriminatory terms.”