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Meanwhile Samsung seeks to make a deal with Apple in Australia

In what could be a small sign that a cross-licensing (and potentially damages) settlement agreement could be at hand in the legal war [1][2][3][4] [5][6][7] between Samsung Electronics Comp., Ltd. (SEO 005930) and Apple, Inc. (AAPL), Apple revealed that is former chief executive had sought out Samsung to discuss a deal, before he initiated the legal war by filing a civil suit against Samsung in Northern California District Court.

I. Did Steve Jobs Try to Cut a Deal with Samsung?

The revelation came, according to international news service Bloomberg, in testimony by Richard Lutton, a senior director at Apple and the company's patent attorney, during a hearing in Australian court.  Apple is seeking to ban sales of Samsung's popular Galaxy 10.1 tablet in Australia, until a final trial decision is handed down in its Australian federal lawsuit against Samsung.  

Samsung has agreed to temporarily delay the release of the tablet in Australia, allowing for the Australian judge to decide whether or not to agree to Apple's request of issuing a preliminary injunction banning Samsung's tablet sales.  The decision was supposed to occur this week.

In testimony, Mr. Lutton painted Apple as the victim, rather than the aggressor in the patent war.  He claims that Apple co-founder and chief executive Steven P. Jobs approached Samsung in July 2010 to try to negotiate with the company.  It is unclear what exactly Apple suggested.  One possibility is that it asked Samsung to stay out of the tablet market -- which would be very unfavorable for Samsung to agree to.  Alternatively, it could have wanted payment for a cross-licensing deal, similar to the deal Samsung recently inked with Microsoft Corp. (MSFT).

Steve Jobs cackling
Steven P. Jobs [Source: AP Photo]

Whatever Mr. Jobs' proposal was, Samsung decided it to be too adversive.  Negotiations between the firms, which Mr. Lutton says did not involve Mr. Jobs (who is facing a health crisis) fell apart shortly thereafter.  Samsung would go on to launch its first tablet -- the Galaxy Tab (7-inch) in September.  The rest, as they say, is history and Samsung and Apple reached their current state of suing each other in at least 23 federal courts or trade agencies in at least 10 countries.

Mr. Lutton did have some kind words for Samsung commenting, "Samsung is an important supplier with whom we have a deep relationship."

Bloomberg says its research data indicates that Samsung is Apple's second largest supplier and that Apple is Samsung's largest electronics component client.

II. Samsung Proposes a Truce

In related news, Samsung's legal chief David Catterns has reportedly proposed a cross-licensing agreement in Australia, which would put the companies' legal conflict behind them -- in one country at least.  The news was first reported by Bloomberg.

The news came shortly after Apple dropped two of patents from the case, patents that it initially planned to pursue infringement claims on.  During the initial filing of the case Apple had claimed Samsung infringed on ten of its patents, then in a later filing it broadened that to a whopping thirteen patents.  But in later court filings, its lead barrister Stephen Burley reduced the number Apple intended to enforce to five.  

In other words Apple may still contend Samsung violates those other patents, it's just not expending resources trying to sue to assert them in court.  This is probably because it thinks they're comprised of weaker claims, which risk being invalidated in court.

Now that number has been cut again.  Apple excluded for unknown reason its patent on touch screen unlocking via a swipe gesture (patent AU 2008100011).  And it also excluded its patent on a bouncing animation when zooming in on a document or icon (patent AU 2009208103, as Samsung agreed to remove this feature from its Australian tablets.

Now only three touch-related patents -- a patent on the manufacturing of a capacitive touch screen used in the iPad 2 and Galaxy Tab 10.1 (patent AU 2005246219), a patent covering selective rejection of inadvertent finger movements on a touch screen (patent AU 2008258177), and a heuristics patent used to correct a user's finger movements when scrolling vertically on a screen (patent AU 2007286532).

Galaxy Tab 10.1, in hand
Apple has reduced its claims against Samsung from 13 to 3. [Source: Android Community]

Apparently Samsung wants to cross-license those patents.  In exchange it will drop its claims agaisnt Apple regarding various wireless patents it owns, which it says Apple's i-devices violate.  The terms of the cross-licensing proposal have not been revealed, so it's unclear whether Samsung would be seeking any additional payments from Apple, or vice-versa as part of the arrangement.

Apple lawyer Steven Burley reportedly said in court that his company would consider the proposal.  Apple will have a bit of time to think it over.  The sides failed to conclude their arguments on time today so the Judge did not rule on whether a preliminary injunction would be issued.  The hearing is set to resume on Oct. 4, after a public holiday in New South Wales.

Federal Court Justice Annabelle Bennett commented, "I can't promise when I’ll make a decision.  I will try to get it out as soon as possible."

A cross-licensing agreement could be a signal of the beginning of an international peacemaking process between Samsung and Apple.  That could allow Apple to retain Samsung as its primary supplier of low-cost, high-quality NAND flash storage.  In recent reports Apple was rumored to be considering a switch to other suppliers, but was expected to take a price, and possibly quality, hit if it did so.

Sources: Bloomberg ("Steve Jobs Started Talks With Samsung ..."), Bloomberg ("Samsung Electronics Gives Apple Proposal...")

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RE: Something seems amiss here...
By Tony Swash on 10/1/2011 6:44:40 PM , Rating: -1
What a lot of hot air and puffed up indignation - to argue what? That most company's, except evil Apple of course, don't sue other companies because of some higher principle. What utter nonsense and piffle. All large companies that thinks their patents, designs, trademarks, copyrights or IP have been infringed in a way that will stand up in court will sue. All of them. The key phrase there is 'stand up in court'. If Apple's claims are not justified I think that due legal process and argument in open court is the way to resolve it, just like any other such dispute. The main difference in Apple's position is that it is not content with swapping licences and it doesn't want to extract a licence fee, Apple wants to stop other company's from copying their stuff. Period.

Can anybody here honestly argue that Samsun have not tried to copy Apple's designs in a blatant way? What really offends Apple phobes about about Apple's legal actions is that Apple will probably win quite a lot of the. It's Apple winning that freaks you out.

By the way I loved your 'A pricier phone with less powerful hardware' comment - man you techie conservatives really don't get it do you? You actually think that consumer make choices about what devices to buy because of hardware specs? Hardware specs mattered in the the PC wars but the PC wars are over and, surprise, surprise, the PC lost. What matters to consumer is the total value and experience of a device. Irrespective of the hardware are iPhones experienced as actually performing worse than Android handset - no - quite the opposite. Do iPhones offer less value than Android phones - of course not because Apple's value stack is best of class. Ask an average consumer what the processor is on an iPad, or how much memory it has, of what the graphic chip it contains - only 1 in a 100 could answer those questions because they don't matter, it's not a useful criteria with which to make a buying decision. Specs only matters to a few weird hobbyists.

RE: Something seems amiss here...
By Onimuto on 10/3/2011 10:18:12 AM , Rating: 1
Hardware matters alot. If it didn't then why does apple change the hardware in the phone dam near every year. Could it be because other manufactures do and apple doesn't want to look like complete shit with their offering? And pc lost since when pc lost are you High on LSD ecstasy and hash combined ? And don't give me the whole market moving to moblie shit even idots who buy tablets still own notebook pcs (this includes Mac idot ,you do understand apple computers knowen as Mac book pros are personal computers right?). Pcs aren't going anywhere . youll come up with some twisted shit to claim other wise. You spout wired hobby for hardware, nice to know you are one of the idot consumers. People who don't do research before buying are idots. Just like those who buy for Looks over function.
IOS feature rich huh. Really it is since when ?
My first $700 iPhone what the calling it now the 2g lol
Featureless untill I jailbroken it and to save time typin on this iPhone 4 I now own. iOS 1-4 useless as tits on a boar hog untill it was jailbroken. And what you'll say only tech people care about that. wRong I can't even keep track how many times some brainless person who bought an iPhone because thier friend had on becomes so jelly over the shit I can do on my phone which leads to me jailbreaking thief phone. Prime examples
Mms , video camra , copy paste, download videos, download music, custom icons start up screens ECt , modified picture folders , the list goes on from ios1-4
Note Tony these were the tyipcal brain dead consumer apple thrives on. Not a techy which I guess
I would be considered. Apple
Thrives of the jailbreaking
Community just like it does with dolphin and Linux. In which apple
Copies everything but hey it's apple so it's ok the double standard say no one else can says the lord Steve jobs. Apple
Gave bullshit about
Mms even tried to scapegoat AT&T for it. Took a 19Year old kid less then a week to get it functioning. Apple claimed it was complex to bring
Mms really it was ?
Copy paste high tech shut another colledge kid gives us this
Through jail breaking. I could continue all day long
On this alone. I already have iOS5. Guess what still need to jailbreak it and 23 programs to get the thing to function feature "rich". And all the features I use those drain dead consumers love. Don't have to be a tech to want what's good. Even the brain dead consumers want features apple still withholds in ios5. Spring board settings, quick camera, quick mms (that doesn't take you out the program you are using to respond to your mms/SMS) list goes on. Ya ya grammar nazi me becuase I said brain dead consumer so much.
Post on my jailbroken iPhone 4 32 gig black.

"And boy have we patented it!" -- Steve Jobs, Macworld 2007

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