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Samsung, unlike HTC, has no intention of reaching settlement with Apple

News by Andrew Kameka on Thursday November 15, 2012.

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Though HTC reached an agreement with Apple to settle their patent disputes, Samsung's head of mobile says the company has not yet begun to fight and has no intention of paying Apple to resolve their legal issues. JK Shin, head of Samsung Mobile Communications, told a group of reporters that his company has no desire to enter into settlement talks with Apple. While HTC reached an agreement that analysts speculate calls for the Taiwanese manufacturer to pay Apple $6 to $8 royalty fees per Android device sold, Samsung has no intention of negotiating a similar deal.

"It may be true that HTC may have agreed to pay 300 billion won (US$276 million) to Apple, but we don't intend to (negotiate) at all," Shin said, according to Yonhap News.

Samsung and Apple are involved in several lawsuits spread across multiple countries. The two sides have previously met to attempt to settle their many disputes outside of the courtroom, but those talks have failed to produce an agreement. Shin's comments show that the two sides are likely too far apart to continue holding settlement talks, so more lawsuits and complaints to intellectual property enforcement agencies are likely to appear in the future.

Samsung's decision to avoid settlement talks may be inspired by the high costs the company would have to pay Apple to avoid further litigation. Samsung is on track to sell more than 50 million units of its Galaxy S III and Galaxy Note II phones, so a $6 to $8 royalty rate could shave as much as $400 million from its annual profits. That's only a conservative estimate of how a potential deal would affect the company's two most popular phones, so any potential settlement would be pushed significantly higher if Apple demanded a higher royalty rate or pushed for the inclusion of all Samsung smartphone products. Under that scenario, Samsung may believe it's better to fight the $1.05 billion judgment against the company and hope to earn more wins in other lawsuits.

source: Yonhap

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Andrew Kameka
Andrew is based in Miami, Florida.

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