A U.K trial set to start on Wednesday and run for three weeks will see Samsung try to prove that Apple’s (NASDAQ:AAPL) iPhone violates key patents related to sending and receiving data through 3G wireless networks, Bloomberg said.
Why is Samsung Suing Apple?
While Apple has not denied using the technology, it argues Samsung’s patents aren’t valid, and that the Korean company is regardless required to license the technology under fair, reasonable, and non-discriminatory terms. Apple has added that Intel (NASDAQ:INTC), which makes its computer processors, has been licensed to use the Samsung patents.
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Samsung says Apple has not shown any interest in buying a license to use the technology. “We have at all times met our obligations to the fair and reasonable licensing of our standards patents,” Samsung told Bloomberg. “However, Apple has refused to negotiate in good faith, and continues to use our patented technologies without any license. We will continue to take all appropriate measures to put an end to Apple’s free-riding.”
This particular trial will only deal with the validity of Samsung’s patents and Apple’s possible infringement, while the question of damages and royalties will be kept for later.
What Does it Mean for Apple’s Stock?
Apple and Samsung, the two global smartphone leaders, have been engaged in several intellectual property battles over the last few months. Samsung received a big setback when a California court jury ruled in August that it had to pay $1.05 billion for infringing on Apple’s design and other patents. The result of that case, and additional questions related to the ban of U.S. sales of Samsung products, will be up for hearing in the coming week in California, making this an important month for the two rivals. The ups and downs during the hearings across the two continents are sure to have a short-term impact on shares.