• Apple's $2.7 Billion Motorola Bond Request Could Potentially Earn $16.2 Billion

    In a recent hearing, Apple clarified that an estimate of a bond worth $2.7 billion per year will cover the losses suffered if Motorola prematurely enforces possible injunctions on iCloud that are later overturned. According to Florian Mueller of FOSS Patents, a lawyer on Motorola’s legal team mentioned that the case may last until 2018, potentially making the $2.7 billion yearly bond worth a total of $16.2 billion.

    The case is part of an ongoing dispute with Motorola alleging that Apple’s iCloud infringes on certain existing synchronization technology patents. In the case, it’s quite possible for Motorola to win at least one of the German suits, but Apple will still have the ability to set a bond to make up for the damages in the event of a win during the appeal process, which could take up to several years. If Motorola wins the initial court hearing, it can enforce the ruling prior to the appeal, however the company would still be liable if the injunction is found to have been improperly granted at the end of the process.

    Mueller explained that “the end of the process means that the ruling (or a subsequent appellate decision) can longer be appealed, or it is appealed but the next higher court isn’t willing to hear the appeal, or the party doesn’t exercise its right to appeal.” The insurance for an improperly handled injunction comes in the form of a bond, which Apple has set at $2.7 billion in November, which was later clarified that the figure was an annual pay estimate that would be applied to the number of years it would take to resolve the case. It is unclear whether the court will agree to the figure presented but if Apple can prove that the product can generate $2.7 billion per year in Germany, than the figure may be accepted.

    The hearing is set for February 3, 2012, which is when Mueller expects the court to reveal its decision as to how much Apple’s bond may be worth.

    Source: FOSS Patents
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