Did Samsung BLOW IT By Rejecting Apple DEAL?
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In a document titled “Samsung-Apple Licensing Discussion” dated October 5, 2010 and made public during the two companies’ ongoing patent infringement trial, Apple said Samsung had chosen to “embrace and imitate” the iPhone’s “archetype.” However, according to the iPhone maker, it chose to offer the Korean company a license for its patents because of Samsung’s status as a key strategic supplier.
The license would have extended to Samsung’s devices running Google’s (NASDAQ:GOOG) Android, Nokia’s (NYSE:NOK) Symbian, Bada, and Microsoft (NASDAQ:MSFT) Windows operating systems. Apple was also willing to offer a 20 percent discount if Samsung agreed to cross-license its technology to the former. Total payments under the proposal would have come to roughly $250 million, while without the discounts they would have amounted to $288 million. Apple added it was willing to consider another “level of discount” if Samsung agreed to stop using what the iPhone maker considered to be its most proprietary features, according to Wall Street Journal.
The negotiations, of course, never materialized into an agreement. In the current case, Apple has sued Samsung for $2.5 billion.
Apple patent licensing director Boris Teksler told the court during his testimony on Friday that late chief executive Steve Jobs and then chief operating officer Tim Cook had spoken to Samsung about the issue. “We didn’t understand how a trusted partner would build a copycat product like that,” Teksler said.
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