Replies to post #354019 on InterDigital Inc (IDCC)

[olddog967]

BandG: Apple's comments are mostly a rehash of ideas that had previously been put out regarding FRAND. Over the years there have been many company proposals and academic studies about what FRAND should be. However there has never been a general consensus. "Expert" commentaries have been both pro and con as to specific proposals.

ETSI has somewhat distanced itself from coming out with anything more specific, and there is always the problem of a possible anti trust violation if one specific type of proposal is agreed upon.


In regard to the proposal to use the selling price of a basic mobile phone when computing royalties, instead of the actual selling price for a smartphone, IDCC's license with Sony/Ericcsson basically did that. Note the following definitions from the licenses, in regard to what was called a "Combi-Unit".



"Combi-Units" means a Subscriber Unit that has substantial functionality unrelated to voice and data communications such as: (a) a computer, or a fully featured PDA, or (b) a handset-like device, but with one or more of the following integrated functionalities: (i) an enhanced display (more than 4,000
colors), (ii) some meaningful PIM (personal information management) functionality, (iii) enhanced multimedia capability which may include a camera and/or an ability to do video and audio streaming (real player), and/or the ability to play music, (iv) memory stick or similar high function memory transfer device and/or (v) enhanced wireless non-infrared connectivity (such as
802.11, ILink, fire wire/IEEE1394). For example, the Sony Ericsson P-800 would be a Combi-Unit but a T68i would not since the T68i has an external camera, sold separately.


"Deemed Price," with respect to:

(a) any Covered Terminal Unit, (other than a Combi-Unit or Module) shall mean the Net Selling Price (as defined below) of such Covered Terminal Unit.

(b) a Combi-Unit, shall mean the lesser of(i) the Net Selling Price of the Combi-Unit or (ii) the average Net Selling Price of Covered Terminal Units (excluding Combi-Units and Modules) using the same technological standard as the Combi-Unit at issue (for example, GSM, GSM/GPRS, GSM/GPRS/EDGE).