Samsung Receives Major Blow in Litigation with Apple

In the ongoing legal spat between California-based Apple and Korean electronics maker Samsung, the company behind the revolutionary iPhone and iPad has presented court evidence that shows Apple’s willingness to license patented technology to Samsung.

Why is this disclosure crucial to the conclusion of the lawsuit? Simple. Samsung’s refusal to agree to the licensing terms put forward by Apple in 2010 is basically the reason why the two giant electronics vendors are battling it out in court today.

As revealed by All Things D, Apple offered to license its portfolio of patents to Samsung in 2010. Under the terms of the deal, the Korean company would be required to pay $30 per smartphone and $40 per tablet to Apple.

The high price reflects the fact that the Cupertino, California-based Apple Inc. had no doubts about Samsung’s wrongdoing − copying the design and functionality of Apple’s portables.

Apple told the Korean company in a 2010 presentation, “Samsung chose to embrace and imitate Apple’s iPhone archetype. Apple would have preferred that Samsung request a license to do this in advance. Because Samsung is a strategic supplier to Apple, we are prepared to offer a royalty-bearing license for this category of device.”

In an August 2010 presentation, the company then-run by Steve Jobs noted, “Apple has identified dozens of examples where Android is using or encouraging others to use Apple patented technology.” The paper was headlined “Samsung copying iPhone.”

“Many more Apple patents are relevant to the Android platform,” Apple said. “Apple has not authorized the use of any of these patents.”

It gets better. The same WSJ-owned blog also reports that Apple was also willing to give Samsung a 20 percent discount, should the Korean electronics vendor cross-license its portfolio back to Apple.

Ina Fried blogging for WSJ specifically notes that “Apple also sought royalties on Samsung’s non-Android smartphones, including those running the Symbian and Bada operating systems.”

Apple had also done the math for Samsung, showing the South Korean multinational conglomerate company that it would end up paying $250 million to Apple, which was actually far less than Apple was spending on component sourcing.

Needless to point out, this will not bode well for the Samsung camp in the ongoing litigation between the two giant electronics makers.