Sources: Apple asked Samsung to pay $30-$40 per device to settle patent dispute

July 25, 2013
Sources “directly involved with the matter” told Korean media that Apple requested substantial royalties from Samsung to settle their patent dispute.

    apple-vs-samsung

    The patent war between Apple and Samsung has entered a calmer phase, as the two largest smartphone makers in the world are reportedly trying to settle their lengthy patent dispute.

    According to the Korea Times, the negotiations have stalled recently, as both parties look forward to obtaining more bargaining chips following decisions of courts and regulators.

    Samsung, the world’s largest phone maker, is said to push for a comprehensive cross-licensing deal with Apple, that would resolve all the current disputes. Obviously, the Cupertino-based company demands favorable conditions for the deal, which the Koreans can’t stomach.

    Samsung thinks that Apple's royalty demand “doesn’t make any sense”

    Samsung is reportedly dissatisfied with the high royalties that Apple is demanding, which, according to sources cited by the Korean publication, amount to $30 for each phone and $40 for each tablet sold by Samsung. Some quick arithmetic tells us that at $30 per unit, the Korean conglomerate would have to pay Apple more than $600 million for the Galaxy S4 units it’s sold so far, plus other significant amounts for other devices. It’s not surprising therefore to learn that Samsung thinks the demand “doesn’t make any sense”, say the sources.

    Why does Apple ask so much money from Samsung? As the most profitable tech company in the world, Apple doesn’t need money, but it does need to slow down Samsung’s relentless growth. Tim Cook’s company wants an agreement that would bring it strategic benefits, hence the almost punitive royalties it asks from its Korean rival.

    Apple wants an anti-cloning provision to prevent Samsung from copying its products.

    Korea Times goes on to quote Florian Mueller of Foss Patents, who thinks Apple also wants an “anti-cloning” agreement, similar to the provision in the cross-licensing agreement it signed with HTC. In other words, Apple would be willing to license its patents, but it wants to prevent Samsung from “cloning” its products in the future.

    Both Apple and Samsung await upcoming decisions of the ITC and courts from around the world, hoping for a little extra leverage. Samsung obtained a ban on some older iPhone and iPad models, which President Obama is expected to approve come August. Apple is looking forward to another victory in courts in California, after it won more than $1 billion last August, an award that was later halved by the judge presiding over the case.

    The game played by the two giants of the smartphone world is even more complex when you factor in that Samsung is one of Apple’s key suppliers of electronic components. Apple has tried to break away from Samsung over the past couple of years, but, according to the latest rumors, the Korean conglomerate will still manufacture the crucial application processors inside iPhones and iPads for the following years.

    Comments

    • Bone

      … right.

    • George Av

      Apple quit holding in your farts, they travel up your spine and into your brain.

      • Fantastico

        Don’t you have homework to do?

        • jimbo

          Uh ok…don`t you have work to do?

        • Lisandro O Oocks

          Says Big Mac Fantastico

          • Fantastico

            That’s my name. :-)

        • George Av

          Shut the fuck up. Go back to shortening your lifespan with McDonalds.

          • Fantastico

            Awh, bless. Cursin’ and swearin’ like a big boy. You’re all grown up. :-)

    • Cao Meo

      shameless Apple

    • Jim

      Die in a deep dark hole apple

    • weed

      I dont know, I can’t get over how much of a shameless clone the galaxy S was, they even tried to copy the ux down to a certain level of detail, and they went as far as omitting the led flash to be more like iPhone. Some punishment is definitely deserved here.

      • Joedarkness

        Frak off appletard

      • Duh Koda

        You seem to be stuck in the past.

        Just like iOS.

      • Alex Lam

        Iphag had no led flash

      • blusasuke

        HOW may i ask was the Galaxy S a “Clone”? Rounded corners again?

        The international version MAY have had the corners and a Home Button. But many of the american versions did not. One was slightly more square than the rest and had Capacitive Keys instead of a physical home button. Another sported a slide out keyboard that i know the iPhone had. The also carried a GalaxyS logo on the back which i know iPhone also did.

        If an idiot got the two of them confused then i say they deserved it because none of the american variants even resembled the iPhone in anything but size.

        • hoggleboggle

          actually size wasn’t comparable either as the Galaxy S was considerably larger than the iphone 3

    • fresh_TD

      Apple is the only company when releasing a new phone its already behind the power curve..lol They suck, BAD.. and their new ios7 starting to look more like android to me

      • SamsaraGuru

        How to guarantee your operating system will not have fragmentation.

        Barely change it in any technologically substantive parameter – be it amount of memory used, processor – teesey weensey size of screen, etc., etc., etc. – from the first version to the latest – and then claim that your failing to keep up with the times, to offer alternatives to the “same ol same ol” is a virtue rather than the fault of egotistical, self-aggrandizement because you are a “legend in your own mind”.

        I’ll take an ecosystem that albeit has fragmentation – that frankly except in regard to the earliest and simplest versions of Android only a geek can spot or gives a hoot about – that offers me a smorgasbord of choices to feast upon that allows me to pick and choose a phone that meets MY needs, MY preferences, MY life’s circumstances – rather than one that is craftily, deliberately, calculatedly fixed in “one size must fit all, take it or leave it” stone by Apple.

        • DgerzeeBoy

          I’ll take a brilliantly designed and executed, innovative and revolutionary product that’s changed the personal communication world forever, containing useful, practical real-world application by a company that has had a commitment to excellence for years, rather than a derivative, bloated-with-useless-gimmicks, cheaply made, encased in plastic, knock-off basically made for high school kids, by a company that needs to pay web reviewers to post fake, positive feedback about their product while bashing the competition. A product that the even the resale market doesn’t value as much as they do the original.

    • Joedarkness

      I have a few apple products (2 x iPad,4s and Macbook air) but I haven’t bought anything for 2 years because of this, Apples business practice of suing anything that moves with crappy US patents really boils my piss

      Look at the Notification bar oh sorry center.. ripped from android

      I’m not a big fan of US software patents but I’m going to enjoy Apple getting reaming about that

      • Frank Bales

        I have disliked (putting it mildly) Apple since the mid-70s for the very same reason. They’ve always demonstrated their excessive greed to the max in everything they do. I’ve never owned an Apple product because of it, and I know there are many people out there just like me.

        I’m not in love with Samsung either, but hating Apple is a tradition for me. :)

        • SamsaraGuru

          You are right Frank – about Apple’s greed quotient.

          Back at the dawn of computer history – before Windows whooped Apple’s ass – Apple, being Apple and too pleased with itself, thought they could get away trying to sell their expensive equipment and OS to business.

          What they didn’t realize – or if they did didn’t give a damn about – is that the people buying business equipment – the C. E. O., the office managers, etc – were not concerned about whether the computers were terribly easy to use – THEY were not using them – the worker bees were. So, what did these business decision makes choose – a more cost effective system that actually took into account their real and pressing concerns – staying in business, making money – substance over image and flash in the pan features they could not justify spending money on as a money making rather than “artistic” types.

    • Piyush

      the source “korea times”.

      hahahaha

    • Aston Martin

      Apple needs to understand they will always be behind Android

    • Piyath Alawatte

      shit shit shit Apple..

    • Ivan Yglesia

      In the end Apple never wins anything just like the 1 billion lawsuit that people claim they won Samsung has never pay that and if Samsung doesn’t finish Apple Google and Sony will definitely finish the job. Apple is holding on iPhone and iPad sales but when a new product launches they are fucked because Steve Job is dead he created everything there.

    • APai

      so, why does apple copy from others ? what an absurd claim.

    • number29

      Looks like both companies are being as stubborn as ever. I presume that even when they do settle it’s unlikely that the terms of settlement will be made public.

    • faloc

      meh…..they should really lay off of each other -.- its getting pathetic… Samsung, just ignore the little child (Apple)

      • vikings football

        its more like apple should be laying off of samsung…considering sumsung supplies apple with alot of componants for their mobile devices.

        and apple wants 40 to 50.00 per device royalty? when infact apple wanted to pay (i dont remember who it was) like 1.00 royalty fee?

        recent latest news involving apple lately only proves the evil doings off Apple and its greed!!! from e-book pricing, russian carriers discontinue selling iphones/ipads, etc…the list goes on!!!

        and now ios looks more like android than it does ios…WTF?

        • myneoncity

          “and now ios looks more like android than it does ios” I have to stop you right there. I love stock Android, but in no way do I think iOS 7 looks like Android. I know I’m in the minority on this, but I don’t change my opinions based on what other people say.

    • kascollet

      A/ Thank you Apple for giving us iMac, iPod, iPhone, MacBook, iPad. Thank you for the daring innovation since the early 2000s. Today’s digital world is great thanks to you, we get it.

      B/ Get over it and stop suing that way. Find ways to deal with other companies. Find ways to make them benefit from your tech and your from theirs.

    • Luka Mlinar

      30$ for phone and 40$ for tablets? Why more for the cheaper thing? O.o

      • Xennex1170

        Maybe because they’re starting to lose market share in that arena and would like to slow Samsung down? :P

        • Luka Mlinar

          That makes sense. Still it was a bull request anyway.

    • nicholas vanni

      apple is a bunch of moron and blind as hell

    • Lisandro O Oocks

      With all the inflation, by the time Samsung pays a penny $40 will be worth just that.

    • rabidhunter

      Samsung should tag on an extra $80 – $120 to any displays and/or processors it makes for Apple.

    • rabidhunter

      Unwise to bite the hand that feeds you. Apple isn’t innovative enough to make their own displays and chips, fine. It would be a petty and underhanded thing to do, but, Samsung could play the, oops defective components. Or even better, place a hidden bug in the chips that updates iPhones to Tizen.

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