Florian Müller: Apple and Samsung should settle for $3 and $1 per unit

“Three years ago to the day, Apple filed its original California patent infringement complaint against Samsung,” Florian Müller writes for FOSS Patents.

“I’ve been watching this dispute for three years. I downloaded countless filings from electronic dockets in the U.S. and attended well over a dozen German Apple v. Samsung and Samsung v. Apple trials, plus an injunction hearing in France. And I can’t tell you how tired I am of this,” Müller writes. “After three years and dozens of filings in at least 10 countries, there is still no endgame in sight. Later today, these two companies will square off again in the San Jose court, where a jury will have to render a verdict that, no matter the outcome, won’t have the potential to resolve this global dispute.”

Müller writes, “At the current juncture (and the ongoing trial is unlikely to have a material effect on this assessment), these are the terms I would propose if I were a mediator:”

• Apple should pay $1 per cellular device to Samsung.
• Samsung should pay $3 per device to Apple.
• This is more favorable to Apple than it appears at first sight because Samsung’s volumes are higher.
• These terms should also apply retroactively to the last 36 months.
• Samsung should additionally make a one-time payment of $750 million to settle any past infringement issues relating to design patents (basically, the first California case). Design patents would not be licensed going forward.
• There should be an anti-cloning provision (something that most of the readers who gave my input stressed), but it would have to be very reasonable.
• This proposal is a “package deal”, so these two parties might very well make rather different demands in licensing negotiations with third parties.

Read more in the full article here.

18 Comments

  1. We’re all SO sorry Florian, that you are “tired of this”.

    I have some alternative ideas. As a solution, how about:
    – Tell Samcopy to piss off trying to extort Apple for SEP’s.
    – Hit Samcopy hard with a massive fine for their blatantly obvious copying of Apple’s products.
    – Stop Samcopy doing any more such thievery in the future.

    1. Florian Muller: Who asked you to police (or watch as you so put it) this cases?
      If nobody, why are you tired of it?
      Have you been paid to cross the floor?
      Is that why you are now so tired because you are conflicted by your own sensibilities?
      Are you looking for a face saving exit?
      Do you believe that the suggestions you make will carry any weight in the various courts around the world?
      Have your pay masters directed you to influence any outcome because they think that your blog is authoritative?
      Are you suffering from delusions of grandeur?
      Is there a mental institution nearby you can check into to help you recuperate from your exhaustion?
      Did you know that you don’t have to blog if you are too tired to do it?
      Get well soon Florian!!!

    2. I’ll recommend a deriviative of Sean’s one comment:

      >Tell Samcopy to piss off trying to extort Apple for SEP’s.

      Tell the FRAND folks that the rules of SEPs have to change:

      the license fee for a SEP **must** be published upfront during the SEP creation process – – and it must always be defined as nothing less than a specific cash value – – or else they don’t get SEP status.

      1. I agree. In fact, I’ve even mentioned this before on this site.

        License Fees for SEPs must be agreed to *before* the patent becomes part of the standard. The fees must be reasonable enough for any and all to license them. The fees must be large enough to compensate the inventing authority. The fees must be paid in currency (no cross licensing allowed except for cross licensing patents in the same iteration of the standard by patent holders of SEPs of the same standard). Severe and extreme penalties for refusing to pay the already negotiated licensing fees and going ahead and implementing it anyway (the fee rates agreed to in advance during the standards process). Any refusal to accept the negotiated SEP rates by the inventor automatically puts the patent into the public domain.

        Implement this and 99.99% of the issues with SEP fees and licensing will go away.

        1. Sorry for the delay in responding … agree 99% with the above.

          The 1% exception is to this:

          “Any refusal to accept the negotiated SEP rates by the inventor automatically puts the patent into the public domain.”

          I’d say, ‘Not Quite’.

          IMO, the better requirement is that any refusal doesn’t result in it going into public domain, but the property of the FRAND board. Doing this gives them incentive (& resources) to enforce this rule.

          Plus, by not going into Public Domain enables one more provision to the rules, which should be:

          “Furthermore, any IP that thus is surrendered becomes NOT AVAILABLE AT ANY PRICE to the prior IP owner for use in their own products.”

          In other words, the penalty to the rulebreaker is more than just a bit of lost revenue, but the complete loss of their ability to use that FRANDed IP as well.

          Yes, this explicitly means that if they’re caught breaking the rules, they know upfront that their punishment also includes that they will have to pull all of their product which uses that FRAND from the marketplace. If that doesn’t get their attention, nothing will.

  2. In other news thieves are going to return to their victims a pyrrhic percentage of what they robbed so nobody prosecutes them and they can continue doing it forever and ever.

  3. Alexander, I proposed as much to Florian several days ago. He does not seem to care about obeying the law just in its practice in court.

    Let people steal then charge them some small percentage of what ever the thief thinks its worth. Cause they will tell the truth, after all, they are thieves and not liers, Right?

    Florian used to make a lot of legal sense, not its like he is sold on stealing and playing the courts to stretch out any convictions until both parties are long dead.

  4. Let’s see now, the school bully beats you up every day and takes your lunch money so the principal decides to make you bring lunch for the bully every day and the bully can only spit on you each day. Great solution to ‘end’ the troubles, right?

    Only true justice (and not vengeance) will create peace.

  5. Yes must be so tiring doing what you claim to be your actual job. Perhaps if its so mentally sapping he should give it up and become a janitor after all he loves to tidy up and look after things for others, its probably more suited to his capabilities too since he sold out.

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