Apple to Samsung: We own a ‘thicket of patents’ and will license only ‘lower level patents’

“On Friday, the decision of the Federal Court of Australia to grant Apple a preliminary injunction against the Galaxy Tab 10.1 was published, with a very few passages redacted out. It’s a long document,” Florian Mueller reports for FOSS Patents. “I pasted the content of that HTML page into a word processor, and it filled 65 pages. But it’s definitely one of the most interesting court orders I have read in connection with mobile devices.”

“I have always assumed — based on what Steve Jobs said last year when Apple sued HTC and on Apple’s litigation tactics — that Apple didn’t start all of this Android-related litigation just to walk away with a $5-per-unit kind of license deal,” Mueller reports. “Apple optimizes for product differentiation. Apple isn’t Microsoft, which concluded a license deal with Samsung as well as eight other Android device makers. Those two companies have different business models in general and with respect to patents in particular.”

Mueller reports, “A few months ago I wrote in another post (on the BRIC countries possibly becoming a safe haven for Android) that ‘a deal under which Apple would let Android off the hook’ would come with conditions including that ‘some patents would probably still be kept exclusively.’ And thanks to the Australian court ruling, I can now say with certainty that this is what Apple communicated to Samsung.”

Read more in the full article here.

11 Comments

    1. Actually, this is an example of how Apple is “Thinking Differently” than Microsoft (and probably also most other US Corporations): MS is willing to take $5/copy for infringements … which is a “Profits Today” paradigm.

      Apple is saying “No” which means less money this fiscal quarter, but with a lot more real value-added revenue in the long run, because they’ll retain product differentiation.

      -hh

  1. Unfortunately, the courts in the U.S. didn’t even grant any temporary injunction against the Galaxy Tab. Apple is going to have a difficult time trying to keep those Android tablets off the market. I wondered why Microsoft was able to get money from Android and Apple wasn’t. Maybe Apple is trying to push this issue too far and might get nothing out of it if the courts let Android win if Apple isn’t able to come up with enough proof. Same with Oracle. Oracle should have been able to put Android to sleep by now if they even had the slightest chance of winning.

    Google will probably continue to bitch and moan that Apple is trying to become some sort of monopoly and the U.S. courts don’t want Apple to become an easy majority winner in the tablet market. I’m certain the U.S. courts will side with Google saying that the consumer should be able to have an open platform choice and not be chained to Apple’s high prices. Apple might be better off taking the $5-per-unit or whatever rather than getting nothing. Apple’s economies of scale should easily give Apple enough to win any price battles with rivals. It might be better if Apple actually could break Android in court, but I wouldn’t depend on U.S. courts in favoring Apple.

    1. Apple is based in America. Samsung is Korean. All else being equal, American companies always win American trade disputes.

      In this case, everything else isn’t equal. Apple is the damaged party and Samsung clearly is the thief.

      It’s just a matter of time before the Korean products are banned.

    2. @ Apple Turnover
      Very silly. Consumers have a wide open choice for NUMEROUS phones and tablets. Nobody is chained to anything about Apple. If many people freely choose to buy a particular product rather than competitors that is TOTALLY fine.
      Also, as many point out at various times — HAVING a monopoly is not illegal — whether because there aren’t any competitors or because purchasers choose your products. ABUSING the monopoly is what is illegal, e.g. by blocking competition.

  2. Nailed it. Apple is unique, their products is unique. You can’t have the elements that make Apple products stand above the rest for a monthly fee. So Samsung, go screw yourself.

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