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Apple told a German court that it would suffer losses amounting to $2.7 billion if it loses a patent case against Motorola, Bloomberg reports.Motorola is suing Apple over an emailing syncing patent.
How would losing the case cost Apple $2.7 billion? It’s unclear. Apple seems to have plucked that number out of nowhere.
But, that number comes up because Apple told the German court it should require Motorola to post $2.7 billion in collateral if Motorola wins the case.
Why is Motorola expected to post collateral? Bloomberg explains why:
German courts often require the winning side in a case to post collateral if it wants to enforce a ruling while the other side is appealing. The amount reflects the losses the party is facing when forced to comply with the ruling. If it wins the appeals, it can seek damages and can make use of the collateral held for that.
The German judge hearing the case thinks Apple is nuts. He said, “I am not yet entirely sure that amount adequately mirrors the commercial value of this dispute … The technology isn’t a standard and there are alternative ways to provide the same services.”