Apple offered to license its patents to Samsung for $30 per smartphone and $40 per tablet

Sat, Aug 11, 2012

Legal, News

The treasure trove of documents from the ongoing Apple-Samsung dispute continue to flow on. The latest startling revelation touches on Apple and Samsung’s licensing discussions pre-litigation.

Now it’s already been revealed that Apple first approached Samsung about its concerns regarding various Android devices in late 2010. Indeed, we also were aware that Apple and Samsung engaged in licensing negotiations over the patents currently at issue in trial. But thanks to court filings that have recently been made public for the first time, we know now specifics as to what terms Apple was attempting to extract from Samsung.

Apple’s licensing overtures towards Samsung transpired in October 2010, about 6 months before Apple said “enough is enough” and initiated its lawsuit against Samsung. As part of its October 2010 licensing offer, Apple wanted Samsung to pay $30 per Android smartphone and $40 per Android tablet for the right to use Apple’s patents. What’s more, Apple also wanted Samsung to pay royalty fees for its other smartphones running other OS’s like Windows Mobile. Apple also indicated that it would wipe 20% off of its royalty asking price if Samsung was willing to cross license its own patents with Apple. Had Samsung agreed to do so, that would have yielded $24 to Apple for each Android smartphone sold and $32 for each Android tablet sold.

In its October, 2010 presentation to Samsung, Apple noted in part:

Samsung chose to embrace and imitate Apple’s iPhone archetype. Apple would have preferred that Samsung request a license to do this in advance. Because Samsung is a strategic supplier to Apple, we are prepared to offer a royalty-bearing license for this category of device.

Apple’s presentation also indicates that they were willing to give Samsung an even bigger discount if they began “migrating its industrial design away from the iPhone/iPad.”

Now admittedly Apple’s terms seem quite high. Indeed, you might recall that Microsoft is reportedly only seeking $10 per Android smartphone and $15 per Android tablet as part of its ongoing effort to secure licensing deals for its patented technologies used in Android-based devices. That said, perhaps Apple was feeling rather confident in its position given that the bulk of Samsung’s patents, or so Apple claims in its presentation, are for standards-based patents that Samsung is consequently obligated to license out on fair, reasonable, and non-discriminatory terms.

Also of note is that recently released excerpts from Scott Forstall’s deposition reveal that Steve Jobs himself approached Samsung about its allegedly infringing products. And speaking on the stand this past Friday, Apple patent licensing director Boris Tesksler added that Apple was shocked and taken aback by Samsung’s products which so closely mimicked Apple’s.

“We didn’t understand how a trusted partner would build a copycat product like that,” Teksler explained.

You can check out Apple’s full October 2010 licensing presentation/offer made to Samsung below.

Samsung Apple Oct 5 2010 Licensing

via All Things D


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