Apple offered Samsung a cross-licensing deal prior to trial

By , Oct 4, 2012

As the wave of injunction motions and appeals requests continue in the aftermath of this summer’s high-profile Apple vs. Samsung trial, another interesting tidbit has been brought to light.

According to recently-filed court documents, it looks like Apple tried to offer Samsung a cross-licensing deal involving 3G/UMTS patents back in April, hoping to avoid at least some litigation…

AppleInsider reports:

“A recently unredacted letter from Apple’s property licensing director Boris Teksler to his counterpart at Samsung, Seongwoo Kim, described a reciprocal deal in which each company would pay royalty rates for the other’s 3G/UMTS wireless patents under the same FRAND principles. The letter, which was included in a flurry of post-trial filings, was dated April 30, 2012, just three months before the Apple v. Samsung jury trial began.”

For those unfamiliar with FRAND (fair, reasonable, and non-discriminatory) terms, it’s a set of licensing obligations that are enforced by standard-setting organizations. These rules say that if you own patents that cover industry-essential inventions, you must license them out at a fair price.

The site has the entire letter from Teksler, but here is one of the more interesting excerpts:

“Apple is willing to license its declared-essential UMTS patents to Samsung on license terms that rely on the price of baseband chips as the FRAND royalty base, and a rate that reflects Apple’s share of the total declared UMTS-essential patents (and all patents required for standards for which UMTS is backward-compatible, such as GSM)–provided that Samsung reciprocally agrees to this same, common royalty base, and same methodological approach to royalty rate, in licensing its declared-essential patents to Apple.”

Apple estimates that the deal would result in a $.33 per unit royalty for its patents, and vice versa. This is much lower than Samsung’s original request of 2.4% of the average selling price per unit, but Apple says it has yet to see evidence that any company has ever paid that much for a FRAND royalty.

Either way, the negotiations obviously didn’t make it very far, as Samsung still tried to assert its 3G-related patents against Apple in the trial. The jury, however, would find it not guilty of infringement.

But this isn’t the first time we’ve heard of the two sides talking over wireless patent licensing, and it probably won’t be the last. Samsung just filed a lawsuit against Apple over the 4G tech it used in the iPhone 5. And thanks to the Nortel auction, Apple has a slew of 4G-related patents to fire back with.

  • Share:
  • Follow:
  • Tr1pTr0p a Fag

    Apple sucks so much, need to beg for licensing deals retarded like faggots…

    • http://twitter.com/zicario25 gabriel espinosa

      you faggots

    • http://www.facebook.com/edmkec Edmond Koh

      There is no need for profanity. Now, you sound more like a retard to me.

      • ghettocowboy

        are you related to the judge?

    • Lordthree

      Someone ban this twerp

      • Kurt

        he was banned already…he is “Liu Zhenyu” or should i say was, since his account was banned apparently. he then used my name for a few weeks but i didn’t care and haven’t engaged him so now he is trying to get me and triptrop against one another. but we already don’t like one another so its pointless haha

      • Tr1pTr0p

        Lol, funny how you joke around here, first of all, my name is Mark, and i have been reading this blog for a month now, I have heard of the guy “Liu Zhenyu” with the apple stuck to his tongue, i didnt mind because he i am also an apple fanboy. I love arguments at the comments section but i did not comment much as this was not my official blog. Then once i saw him making all those gay comments and homosexual responses, it was weird like fuck. And yes, I wanted you guys to fight because it was fun with your arguments once. Who cares if you suspect every guy to be Zhenyu, (I checked your profile) like “The Real Kurt”. Even if you suspect me i give no fuck, I am Markus Jordan dumbass.

  • Tr1pTr0p

    You are so childish Tr1pTr0p, time to see how you like it when you copy people’s names and arguing here, greetings from Kurt.

    • Tr1pTr0p

      Funny how so many people know that Tr1pTr0p is the joker who uses other people’s names, glad many see the truth. -Kurt

      • http://twitter.com/nAcolz Acolz

        Funny how you are Mark as you said earlier – “Lol, funny how you joke around here, first of all, my name is Mark, and i
        have been reading this blog for a month now, I have heard of the guy
        “Liu Zhenyu” with the apple stuck to his tongue, i didnt mind because he
        i am also an apple fanboy. I love arguments at the comments section but
        i did not comment much as this was not my official blog… … I am Markus Jordan.”

    • Kurt

      greetings from kurt? trying again dork

  • http://twitter.com/Jack_maredit Jackson Grong

    CEO of Samsung is like… Vomit.