By Kim Yoo-chul
Samsung Electronics isn't prepared to end its ongoing patent disputes with Apple because Samsung needs a deal that will make an impact on its market share, said an influential patent expert.
Florian Mueller of FossPatents insisted that Samsung holds a lead over rivals in the global smartphone market and that pride is the primary reason why it's difficult for the disputes to be settled.
"For Apple, a deal in which only a few dollars per device change hands wouldn't make strategic sense. It needs a deal that has an impact on market share and that's what Samsung is apparently not prepared to accept, which I understand," Mueller said in a written interview with The Korea Times, Thursday.
The patent expert said the primary obstacle to reaching a settlement is the losing party's refusal to recognize the inevitability of its defeat.
"In the Samsung-Apple case, the outcome is going to affect not only the relative competitiveness of the two largest mobile device makers in the world but also their dealings with numerous other industry players. The stakes are high," stated the German-based expert.
Mueller was recently included in the global list of 50 prominent people in intellectual property (IP) by Managing Intellectual Property, a monthly magazine published in English that specializes in IP.
The remarks came a few days after top Samsung sources said that settlement talks with Apple were being stalled, though they are now involved in negotiations for an agreement.
The sources, who are directly involved with the matter, have said the Cupertino-based Apple is "still asking too much." The iPhone maker was asking Samsung to pay $30 per phone and $40 per tablet as royalty, which Samsung said "doesn't make any sense."
Mueller said the stiff request made by Apple was because it needs a deal that will make an impact on the competitive landscape.
"It's not just about money. In a deal between Apple and HTC of Taiwan, a lot of emphasis was placed on an ‘anti-cloning provision' that would still allow Apple to sue HTC if it ‘clones' its features," he said.
According to his observation, Samsung Electronics and Apple might enter a comprehensive cross-licensing deal but "at some point." He expects that chances are low that Apple will ask Samsung to put in place what it referred to as an ‘anti-cloning' provision.
"It's unlikely that Apple wouldn't insist on the kind of ‘anti cloning' provision it got HTC to accept. Samsung may be reluctant to accept such a clause, for strategic reasons and as a matter of pride," he said in the interview.
"The impact of all that these parties have won against each other so far is rather limited. Samsung's bet on standard-essential patents may now look more promising in light of the recent ITC ruling," he added.
Muller said that Apple is being hesitant after its previous request to the U.S. International Trade Commission (USITC) to delay an actual sales ban on some of its products on its home soil was denied. After a 60-day presidential review, U.S. President Barack Obama will decide and the order will come on Aug. 4.
"Obama should simply let Samsung's import ban take effect instead of using presidential powers to overturn the USITC decision. It hasn't happened in several decades," he answered.
"There's one thing that I believe Apple wants to have resolved in court before any deal — its entitlement to injunctions in U.S. federal court," according to the expert.
He stressed that the ongoing appeal, which will be heard by the Federal Circuit in a couple of weeks, should be a "huge strategic battle," as this is not because of the patents at issue in the first Apple-Samsung case but because of the wider ramifications of whether or not Apple can win a U.S., sales bans.
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| Florian Mueller |
Florian Mueller of FossPatents insisted that Samsung holds a lead over rivals in the global smartphone market and that pride is the primary reason why it's difficult for the disputes to be settled.
"For Apple, a deal in which only a few dollars per device change hands wouldn't make strategic sense. It needs a deal that has an impact on market share and that's what Samsung is apparently not prepared to accept, which I understand," Mueller said in a written interview with The Korea Times, Thursday.
The patent expert said the primary obstacle to reaching a settlement is the losing party's refusal to recognize the inevitability of its defeat.
"In the Samsung-Apple case, the outcome is going to affect not only the relative competitiveness of the two largest mobile device makers in the world but also their dealings with numerous other industry players. The stakes are high," stated the German-based expert.
Mueller was recently included in the global list of 50 prominent people in intellectual property (IP) by Managing Intellectual Property, a monthly magazine published in English that specializes in IP.
The remarks came a few days after top Samsung sources said that settlement talks with Apple were being stalled, though they are now involved in negotiations for an agreement.
The sources, who are directly involved with the matter, have said the Cupertino-based Apple is "still asking too much." The iPhone maker was asking Samsung to pay $30 per phone and $40 per tablet as royalty, which Samsung said "doesn't make any sense."
Mueller said the stiff request made by Apple was because it needs a deal that will make an impact on the competitive landscape.
"It's not just about money. In a deal between Apple and HTC of Taiwan, a lot of emphasis was placed on an ‘anti-cloning provision' that would still allow Apple to sue HTC if it ‘clones' its features," he said.
According to his observation, Samsung Electronics and Apple might enter a comprehensive cross-licensing deal but "at some point." He expects that chances are low that Apple will ask Samsung to put in place what it referred to as an ‘anti-cloning' provision.
"It's unlikely that Apple wouldn't insist on the kind of ‘anti cloning' provision it got HTC to accept. Samsung may be reluctant to accept such a clause, for strategic reasons and as a matter of pride," he said in the interview.
"The impact of all that these parties have won against each other so far is rather limited. Samsung's bet on standard-essential patents may now look more promising in light of the recent ITC ruling," he added.
Muller said that Apple is being hesitant after its previous request to the U.S. International Trade Commission (USITC) to delay an actual sales ban on some of its products on its home soil was denied. After a 60-day presidential review, U.S. President Barack Obama will decide and the order will come on Aug. 4.
"Obama should simply let Samsung's import ban take effect instead of using presidential powers to overturn the USITC decision. It hasn't happened in several decades," he answered.
"There's one thing that I believe Apple wants to have resolved in court before any deal — its entitlement to injunctions in U.S. federal court," according to the expert.
He stressed that the ongoing appeal, which will be heard by the Federal Circuit in a couple of weeks, should be a "huge strategic battle," as this is not because of the patents at issue in the first Apple-Samsung case but because of the wider ramifications of whether or not Apple can win a U.S., sales bans.
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