Apple demanding $180M extra cash in settlement from Samsung

by: Matthew BensonDecember 27, 2015
2.2K

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In America, trials are rarely cut-and-dry events: even after a decision is reached the losing party can often demand a retrial, and the escalation process then begins, possibly even reaching the U.S. Supreme Court. In Apple v. Samsung, a rather unusual turn of events has just taken place. Despite Samsung having finally agreed to pay the (reduced) damages it owed Apple, the latter company is now demanding even more money. How much? $180,000,000 to be exact.

Those who have followed the trial since it began in 2011 may recall that Apple sued Samsung for allegedly making illegal use of patents and designs related to the iPhone. The trial originally ended with a verdict favorable to Apple and requiring Samsung to pay $1.04 billion in damages. Years later the total stood at a reduced $548 million, which Samsung paid on December 14th. In doing so however, Samsung also stipulated that if the ongoing disputes related to that first trial ultimately end in the Korean OEM’s favor, Apple must give back the money. Apple, in turn, argued no such reimbursement would take place.

The new damages, filed on Wednesday, argue that Samsung must pay around $180 million “in supplemental damages and interests…These further damages relate to five Samsung devices that infringed Apple’s patents and were sold after a 2012 jury verdict finding Samsung liable in the dispute” according to Reuters.

While a new trial will begin next year related to the damages from this original trial, Samsung meanwhile has asked the U.S. Supreme Court to hear the case, arguing that Apple’s compensation was far too much given the patents involved. Before a hearing can be scheduled, the Supreme Court Justices would first need to agree to review the case, something it could just as easily refuse.

Suddenly, Samsung?

Some have questioned what made Samsung “suddenly” decide to pay off the existing damages to begin with, especially given the company’s demand for potential reimbursement. While it is impossible to say what was ultimately decided upon, several theories are possible:

  1. Samsung’s executives became concerned with the liability-factor relating to the outstanding figure. The company has made a number of bold statements in recent weeks that underscore the difficult times currently facing the OEM. Having the Apple settlement effectively “off” the balance sheet would allow it to be taken as a loss now while the company is still in relatively good fiscal condition, rather than in the future when it might be facing a more difficult situation.
  2. Samsung could have used it as bargaining leverage with Apple. It is widely known that the South Korean OEM supplies numerous components for Apple’s products, and it has even been suggested that Apple may seek to purchase AMOLED panels from Samsung in the future for use with iPhone models. Samsung’s payment could be seen as a sign of good will, or even a way of trying to gain an upper-hand as if to say “we have fulfilled our requirement, so now we expect you to take us seriously.”
  3. Apple may have required Samsung to pay the damages before any deal regarding AMOLED production (or other new technology) could be considered. Given that LG also produces AMOLED panels, it is conceivable that Apple might have used the outstanding payout as “encouraging” board members and executives to lean towards LG for the new components.
  4. Samsung’s legal team may have suggested that a Supreme Court hearing is unlikely to happen and that it is better to just pay the damages now as opposed to further prolonging it.
  5. Samsung may be under the impression that Apple will indeed return the money should the patents related to the trial ultimately be invalidated.

It is possible one of these points has hit the nail on the head. It is also possible that the true nature may be a combination of many, or perhaps none of them at all. The politics and business decisions behind major movements like this are the stuff of speculative legend, though it is likely no one but those directly involved will ever know what happened.

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At the very least, the fact that Apple is asking for even more money now stands as a rather contentious issue in and of itself: on the one hand the company seemingly has a legitimate reason to demanding damages related to such a protracted payout (the interest alone is worth a fortune) and inevitably Apple’s own stakeholders have been most displeased with the missing money not exchanging “hands”.

At the same time, for Samsung, this new filing inevitably comes across as a slap in the face. After finally paying the restitution, the company is now hit with additional fees serving to ensure the “you owe me” situation perpetuates for some time to come.

Wrap Up

While some have referred to the ongoing legal battle as the “The Patent Trial of the Century“, the title seemingly becomes more and more apropos given the continuing and prolonging twists and turns in the matter. Clearly Apple is not happy even after it has received it’s money, yet perhaps it shouldn’t be given how much time has taken to facilitate such. Samsung, meanwhile, wants Apple’s patents invalidated so as to absolve it of any legal problems.

We want to hear what you think. Is Apple in the right here? Should it have filed new charges? Please leave your comments below and let us know!

  • HotelQuebec

    Weren’t several of those patents invalidated by USPTO?

  • thereasoner

    First, it should be noted that Samsung only agreed to pay before all appeals and future cases are heard on the condition that they can get the money back should the amount continue to be reduced.

    Second, Apple has lost this case over and over again in courts all over the world for good reason. In fact it took a rather corrupt court in Apples backyard of Cupertino for them to see a victory of any significance at all. Now even that so called win is falling apart at the seams through appeals.

    That said, Apple and others copy as well and of course its a no brainer that Samsung copied and they should pay for instances where legitimate IP was used. So far Samsung has been proven to be right regarding Apples ridiculous IP claims 90% of the time as most of Apples patents have been tossed out of court. If not for Samsung and their deep pockets taking Apples IP claims and seeing if they could hold up in court the entire mobile industry would still be getting bullied by Apple with these lies about IP. Not to mention that consumers would be worse off had Apple succeeded in using a broken patent system and the courts to prevent realistic competition!

    • mobilemann

      citations for any of that, i mean i know it’s AA, and you’re preaching to a choir, but you don’t have to lie.

      • thereasoner

        What do you mean? The lack of significant wins for Apple or the fact that Samsung stipulated that they get the money back?

        Both are widely reported and well known, what are you talking about?

        • mobilemann

          apple’s made more win’s than had losses. but you wouldn’t think that from your guys lips. It’s just boring as you’re consistently just lying.

          look at apple litigation page on wiki kid.

          • thereasoner

            Apple’s “wins” have been insignificant and many of them overturned. Why do you comment on stuff you know nothing about. Instead of throwing around accusations like a childish fanboy why don’t you quote all these billion + dollar wins that I know never happened?

          • mobilemann

            no need to make stuff up, or get emotional (that’s why i hate this site, kids like you that care on an emotional level on this stuff, like google or apple or MS give a crap:D

            https://en.wikipedia dot org/wiki/Apple_Inc._litigation

            i don’t lie (knowingly) but don’t know everything either. (obviously) But yeah, lots have not been overturned, and you know what? Some against them were overturned.

            I know they run android, but you do know Sammy has been convicted of bribery and extortion, while apple has made actual movement in positive ways with supply chain and rights for minority employee’s.

            but yeah, who cares about that right? It’s what you have in your pocket. We won’t even get into how much more you think you can do compared to other (lol) based on OS preference. It’s just such a joke, like your name, the reasoner. lol.

            can your shield control your nest? As my ATV can control my house automation, which is way more than just climate.

          • thereasoner

            Ah, deflection… The classic move of those losing an argument.

            You are coming across as a 12 year old, hardly worth my time. For what its worth I personally don’t think Samsung or any company for that matter are angels, its just that next to Apple they all look like one :-)

            It’s no wonder that you hide your comments like a coward, I’d be afraid and embarrassed to show them too if I was you!

          • Apple lost two big cases this year on patent infringements, funny how the media isn’t all over it, but we’re still beating this dead horse from 2012

          • mobilemann

            very true

  • techsupport

    STFU APPLE, YOUR A PIECE OF SHIT!

    • moew

      YOU’RE

      • Derpy Dimentio

        lol no one gives a shit

  • Werner Gerber

    Apple’s litigation over innovation strategy is opening the door for other OEMs to gain traction in the market. Two dogs fighting over a bone, a third will surely arrive on the scene to take it from both.

    • mobilemann

      this is not about innovation? this is about a notebook that had every detail of apple’s x and y experiences. You people on this forum, like to make villians, and that’s cool, but reality is much more interesting kids.

  • Person Dude

    A sterling example of why I will never own a Crapple product. Suing over petty stuff like this is what makes it a d-bag company.

  • mimranyameen

    Good guy apple.

  • Modman

    Apple has nothing to offer. They are copycat crooks. Hey siri is a copy of OK Google. I watch is a copy of Gwatch. If they had anything to offer they’d stop patent trolling and compete. Their followers are blind zombies. Samsung overcharges for things also, but no one else has the money to defend competition like Samsung.

  • Javid Nazim Mammadov

    I like Apple, but this is just stupid.

    • mobilemann

      nah, sammy using actual apple logos in stores made by samsung themselves was way to far. They deserve to get punched in the gut. (and i like both sammy and apple, none of this will stop me buying anything:D)

  • turco320

    Good Apple

  • mobilemann

    to be fair, they do actually deserve it.