Google Wants Huge Royalties Every Time Apple Sells An iPhone (GOOG, AAPL)

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As Google is set to acquire Motorola and the company’s 17,000 patents, it’s planning on asking for the same 2.25% maximum royalty per unit that Motorola is already demanding for every iPhone sold, reports Philip Elmer-DeWitt of CNN.

Apple obviously takes issue with this, and so does entrepreneur and lobbyist Florian Müller. He told CNN that “2.25% of the selling price of the product as a whole is absolutely out of step with the concept of [fair, reasonable, and non-discriminatory use] and with industry practice.”

A 2.25% maximum royalty might not sound so bad (we thought it was small), but Elmer-DeWitt points out that the European Telecommunications Standards Institute maintains 117,964 patents registered to 175 companies. If each company demanded the same 2.25% every time a company wanted to build a device that worked with another company’s technology, the industry would “grind to a halt.”

Things will get very interesting once Google’s acquisition of Motorola is officially complete.

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