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Company defends its actions, pointing to Microsoft and Apple's strategy: buy other companies' IP; sue with it

Today Samsung Electronics Comp., Ltd.'s (KSC:005930) smartphones are threatened with bans thanks to Apple, Inc.'s (AAPL) ambiguous patents from a decade ago.  And Samsung pays an estimated $15 USD per handset to Microsoft Corp. (MSFT) for its war chest of patents.  In other words, the world's best-selling smartphone maker has received a cold hard crash course on the twisted state of the U.S. intellectual property system.

Now it's looking to apply those hard-earned lessons and do some patent harassment of its own.

Samsung Electronics' sister-firm Samsung Display announced this week that in March it spent $25M USD to buy up patents on LCD, LED, and OLED display technologies from Japan's struggling Seiko Epson Corp. (TYO:6724) and launch a shell company, Intellectual Keystone Technology (IKT).

Based out of Washington, D.C., the new firm isn't exactly bashful about its objectiveness, which are the same as those of most shell companies: find corporate targets, demand they license, and sue if they don't comply.

Samsung TV
Samsung Display is looking to play the patent litigation game.  [Image Source: Flickr]
 
An unnamed Samsung spokesperson told The Korea Times, "Companies should be paying licensing fees for patents. We are paying to platform providers such as Microsoft in return for using their patents. IKT will be tasked to find out which patents are helpful and valued for Samsung."

Samsung Display was the world's largest LCD TV shipper in Q1 2013 according to Display Search.

The patents from Epson include a number of patents on organic light-emitting diodes (OLEDs), a new form of display technology that's expected to dominate the television and mobile device display industry over the next few years.  The patents also cover ultra-high definition display technologies, such as the "4K" display format that debuted commercially this year.

In other words, the Samsung Group -- having played the victim in the U.S. -- appears to be embracing the patent industry's dark side, with lots of juicy targets to sue.

Source: The Korea Times



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RE: One Big Ugly Mess... Patent Wars
By Fleeb on 5/27/2013 3:45:04 PM , Rating: 2
So basically you are not refuting the described behavior of companies such as Apple?


RE: One Big Ugly Mess... Patent Wars
By Tony Swash on 5/27/13, Rating: -1
By Cheesew1z69 on 5/27/2013 7:24:00 PM , Rating: 3
quote:
I was pointing out that ssnova703 was talking bollocks
How ironic...


RE: One Big Ugly Mess... Patent Wars
By insurgent on 5/27/2013 8:39:42 PM , Rating: 2
It's not really a negotiation if one side insists on dictating the outcome is it? You're such a tool.


RE: One Big Ugly Mess... Patent Wars
By Boze on 5/27/2013 11:56:46 PM , Rating: 5
You know why I f**kin' hate you and wish you'd get hit by a bus, Tony?

Its not because you like Apple. I know a lot of people who like Apple. My older brother has an iMac, an iPad, an Apple TV, and an iPhone.

Its because you try to excuse away all their bulls**t behavior. They're scumbags. Period. I still wish I had invested in their company in the 80s though. I don't care that they're scumbag patent trolls. They deserve to be scumbag patent trolls because the laws allow them to be.

I bought a substantial portion of Starbucks shares in 1995. The stock's split several times since then. The past couple of years is been paying out some great dividends. But what I don't do, is go around telling everyone how f**kin' amazing Starbucks coffee is. It isn't. I can and do make better coffee at home with my Breville machines.

But its a good investment.

I wish you could pull your head out of your rectum and realize this sort of thing.


By retrospooty on 5/28/2013 6:16:59 AM , Rating: 1
"You know why I f**kin' hate you and wish you'd get hit by a bus, Tony? Its not because you like Apple. I know a lot of people who like Apple. My older brother has an iMac, an iPad, an Apple TV, and an iPhone. Its because you try to excuse away all their bulls**t behavior."

LOL +1 ... Yup. Apple can do no wrong. There is nothing more pathetic that someone that gets on the internet on behalf of a company, to promote every product they make and every crappy move they take. What am I missing? I just don't get it. I like Android, and I use it, but I would drop it the second something better comes along. I don't give 2 shits about Google, Samsung, or any other company that makes any product I buy, bought, or intend to buy. WTF is the motivation here?


RE: One Big Ugly Mess... Patent Wars
By Tony Swash on 5/28/13, Rating: -1
RE: One Big Ugly Mess... Patent Wars
By Cheesew1z69 on 5/28/2013 9:20:57 AM , Rating: 2
So because it's the oldest and most successful, that means we should not feel that way towards them? LOL

Who gives a fuck how old or successful they are, besides idiots like you.

You really are stretching in your support for them.

quote:
Generally I feel a lot of the more extreme hostility towards Apple is simple based on their success.
And of course, you would bee wrong, as usual.

quote:
Go outside and have some fun :)
Follow your own advice and quit sucking the Apple teet...

You are a loser, plain and simple.


RE: One Big Ugly Mess... Patent Wars
By BRB29 on 5/28/2013 9:39:06 AM , Rating: 2
You can hate on a product and it doesn't matter but why hate on the company itself.

I never understood why people wish doom on Apple as a business because their product didn't offer an open platform and features. They definitely stirred up the entire industry and consumers are rewarded with better products because of it.

You don't have to buy their products and people are starting to to do it. You still want apple to be around because it's another strong competitor.

It's clear that their business strategy is not to be a monopoly. They just want the high end market of any product they sell. They used the same ruthless lawsuit tactics every other business have done for decades. Apple just have deeper pockets and went further.

I haven't bought apple products for years but I still want them around so I can have phones like HTC One or tablets like Transformer Prime Infinity/Nexus 10 or 7.


By Cheesew1z69 on 5/28/2013 10:18:13 AM , Rating: 2
quote:
It's clear that their business strategy is not to be a monopoly.
Yes, it's TOTALLY clear by trying to BAN the competition they don't want to be a monopoly. Are you retarded?


RE: One Big Ugly Mess... Patent Wars
By bug77 on 5/28/2013 11:23:20 AM , Rating: 2
quote:
They used the same ruthless lawsuit tactics every other business have done for decades. Apple just have deeper pockets and went further.


I just used the same greeting as others have done for years (I shook your hand). I just have a lot more muscles and tore your arm off.


By Bound_4_Valhalla on 5/28/2013 12:02:31 PM , Rating: 2
My first post on this site...I stood up and had to clap over your response bug77; very poignant.


By ssnova703 on 5/29/2013 1:04:55 PM , Rating: 2
quote:
I never understood why people wish doom on Apple as a business because their product didn't offer an open platform and features. They definitely stirred up the entire industry and consumers are rewarded with better products because of it.


It's the abuse they put on their consumers(sure Apple has that "right" to do so, but as a business tactic it pisses me off), let me explain.

Proprietary standards forced upon us...ok, done! Jk..

I can appreciate some of the industrial design Apple has come out with on their products, but conceptually they were meant to be reliant on Apple(upgrades, repairs, etc.), by design/business tactic, essentially Apple products have a shorter life cycle(as good quality and as well as they may hold their value).

Take for example, the regular MBP, Apple came out with a proprietary screw hole so as to make the consumer go to Apple for upgrades/repairs(with outrageous prices at that).

Their intents were made more obvious with the rMBP, gluing(smothering it with a silicone epoxy like mess) and soldering components, forcing the user to pay higher prices for factory upgrades.

In addition...and yes, one could argue it's Apple's right... but as a someone who wants to develop for iOS due to market demand from the sheeple.. Apple forces a developer to buy a Mac to develop... I hear ignorant sheeple all day long raving, "that's because pc's are inferior or can't handle it"... but it's not that at all(PC's have superior hardware when configured, not to mention they are both x86), it's solely a business tactic... I'm forced to buy a mac if I want to develop for iOS(yes I know about OSX86, however you have to sign the apps and they register your machine...bottomline it's not legit).

All the while, everyone's drooling over Apple products like an accessory item that's "cute" or "purty".

Product life cycle as well... it's all planned and designed(not saying they don't have a right to do so, but it's nasty tactic on the consumer)... for example, even if the hardware could handle the progression of newer updates, they plan a lifecycle cut off so you have to buy the "newest thing". I would go as far to say that almost every Apple product released is purposely hampered/lacking in order to force the user to upgrade to a newer model...this is by their design/business plan This can be foreseen with the ipad mini,intently hampered on release with the older processor and lower resolution... people buy into the buzz(not saying it's a bad product, just it was designed to be axed).. new ipad mini2 comes out... retina screen, A6(maybe x) proc, new camera, BUT... they will probably intently hamper one aspect(my guess is RAM)... and then comes the cut off point ipad mini3 with 2gb ram(all the rest of the specs) for say ios 8, etc. etc. rinse/repeat... they play the same pattern and it's easy to see, which is why I'm annoyed by them, yes it's smart, yes they have the right to do so, yes they have the muscle to force the users/followers to do so.. but with that, I don't like being played... and the sad thing is.... it seems like MS is copying this tactic too to an extent but they haven't gotten their *bleep* together yet.

Samsung on the other hand seems to be catching on to this slightly as well... releasing slightly "hampered" down products in anticipation for the next(Galaxy Note 2, had just enough to make consumers buy it, but with some dissappointment, G Note 3 will not only attract new users, but maybe people upgrading from the Note 2... this is a page from Apple's book, which I despise, but it's not nearly as bad as what Apple is doing.. and with their shiny new releases many don't care)... but not nearly as bad as apple, hence I don't mind them as much. Plus they aren't using proprietary plugs(well, let's face it, if they had the "muscle" to push something, they would, like any company... why? to make money... why? it's a corporation's duty to increase stock value, among other things....but that's a whole different discussion..)


RE: One Big Ugly Mess... Patent Wars
By bug77 on 5/28/2013 10:51:30 AM , Rating: 3
quote:
That seems an awful of intense negative energy to feel about one of the oldest and most successful companies to ever come out of the original Silicon Valley...


Compared to IBM, it not that old and is not that successful either. Building your arguments on trivia, just as always.
Fwiw I don't hate Apple because of their success, I hate them because I'd hate to live in a world where all companies were conducting business the way Apple does.


RE: One Big Ugly Mess... Patent Wars
By evo slevven on 5/29/2013 1:18:11 AM , Rating: 1
There is a saying that goes sometimes asking nicely doesn't help anything unless you have the power to enforce. However if success is the factor to which then, logically speaking, shouldn't you correct your statement to reflect the manner that while Apple is the current dominant tech firm in the smartphone industry it is equally failing to show the growth as well .

IF we were to be rather "vulcan" about it (to take a Trekkie term rather) about the situation and take the emotion away from the argument then based on the failure to achieve expected growth, its current revenue forecast, sales that are typically indicative of the growth and ability of a company to expand then it'd be logical to say that Apple is closer to where Microsoft was in its prime and that the outlook for Apple looks rather bleak.

Even to this emotionless and rather logical argument we could also include all quantitative data regarding the higher adoption rates, usage, activation of Android~based phones as well as further subdivide the quantity of them as Samsung phones.

If you had to really be honest and "enjoy" the argument, then it seems Apple is in a decline and that the usage of patents to leverage towards competitors is nothing more than a ploy to either limit the actual scenario of loosing the sector dominance to Samsung eventually as well as a reflection of the inability to continually innovate in a field? OF course this part is a hypothetical but strictly looking at the data, one thing is for certain and that is Apple isn't achieving the same momentum it used to nor is it growing by the same standard and rate as Samsung. This part is quantitatively factual.

I thought though I'd correct some of the stuff for you in a wall~o~text for the sake of correctness and facts. Feel free to also check Apples earning reports regarding its first ever year-over-year revenue decline since 2003. Not a doomsday scenario but indeed not a positive sign.

Corrections courtesy of my Samsung Chromebook tethered to my samsung s2 because obviously Chromebooks get far fewer viruses than any Apple OS :D


By Cerin218 on 5/31/2013 5:15:12 PM , Rating: 1
Because in reality, Apple only exists because it got lucky. It made an MP3 player that people liked which kept the company alive long enough to create the iPhone. If it weren't for those two products Apple would have been RIM and they MIGHT exist today as a graphic design niche. Schools stopped using Mac because there was no purpose to teaching children on a computer that the business world didn't use. I lost my love for them during PowerPC simply because I could get a better PC compatible cheaper, and with all of the third party vendors I could get parts WAY cheaper.


By ven1ger on 5/31/2013 5:11:34 PM , Rating: 2
I wouldn't hate someone like him, just pity him. People like Tony are a bit extreme about their choices and will do anything to defend it. But, at least he isn't advocating violence.

People like Tony are the tech version of the crazy nuts that hang out on public streets by public transportation that goes off on anything, at least that's the way I view him. But like the crazy person on the street, best not to engage them, but ignore them, unless they get violent then you put them away or put them down.


"My sex life is pretty good" -- Steve Jobs' random musings during the 2010 D8 conference














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