Apple's Motorola bond actually up to $16 billion
updated 06:25 pm EST, Fri December 2, 2011
$2.7 billion clarified as annual amount
Several weeks after reports pointed out that Apple was calling for a $2.7 billion bond from Motorola in an ongoing patent dispute, fresh information suggests the figure was actually an annual estimate. Apple is said to have clarified the request at a hearing today, while Motorola's legal team put 2018 as a theoretical maximum for an extended battle in the court system, according to patent blogger Florian Mueller. If the court allows both estimates to be used as the basis for a bond, Motorola would have to secure approximately $16.2 billion.
In German courts, such bonds serve as collateral to guarantee compensation if a company seeks injunctions on products or services before the appeal process has been completed. In the Motorola case, Apple claims it will lose $2.7 billion in annual revenues if Motorola wins the case, which involves patents related to e-mail syncing, however the company has yet to fully detail the justification for such a seemingly high number.
The court has yet to make a final decision regarding Apple's bond demands, though the judge overseeing the case initially suggested $2.7 billion might not reflect the true "commercial value" of the case at hand, considering there are "alternative ways to provide the same services."
