Apple Wanted $30-$40 Per Samsung Device Sold To Avoid The Courtroom
The Samsung vs. Apple patent trial is leading to some seriously juicy findings. Findings that no doubt would have never, ever been made public if this had not come down to a jury. In fact, it's crazy to us that both Samsung and Apple let it get this far. Why not settle outside of the courtroom instead of having secrets spilled to the public that can never be erased from our memories? Did both Samsung and Apple feel so intently that they would win, that neither could see the real truth? At this point, it's pretty clear that things are tilted in Apple's favor, for better or worse, but in wrapping up week two of the trial, something really impressive surfaced: actual financial details regarding a potential licensing deal.
All this time, it seems that Apple was actively trying to avoid the court system by having Samsung pay a supremely hefty licensing fee per device for Samsung's gratuitous use of Apple trade dress on its products. How much? According to new evidence shown in court, Apple was willing to not sue Samsung if it would pay $30 per smartphone sold and $40 per tablet sold to Apple. That means billions upon billions in new revenue for Apple, and billions in lowered revenue for Samsung. It's now becoming very clear what was at stake for both companies.
But it gets crazier. Apple also offered a 20% discount if Samsung would agree to cross-license some of its patents back to Apple; think of it as a hand-shake offer instead of a punch. Apparently, Apple wanted to be able to legally use some of Samsung's patents as well. Also, Apple longed for royalties on Samsung's Windows-based phones, in addition to Android-based phones. All told, Apple figured that Samsung would have owed it one-quarter of a billion dollars in 2010. Yikes!
Of course, none of this matters now; the court is in session and fits are flying. But you'll no doubt have to look at the eventual outcome and then back at this, only to find if Samsung would've been better off just taking the deal.
All this time, it seems that Apple was actively trying to avoid the court system by having Samsung pay a supremely hefty licensing fee per device for Samsung's gratuitous use of Apple trade dress on its products. How much? According to new evidence shown in court, Apple was willing to not sue Samsung if it would pay $30 per smartphone sold and $40 per tablet sold to Apple. That means billions upon billions in new revenue for Apple, and billions in lowered revenue for Samsung. It's now becoming very clear what was at stake for both companies.
But it gets crazier. Apple also offered a 20% discount if Samsung would agree to cross-license some of its patents back to Apple; think of it as a hand-shake offer instead of a punch. Apparently, Apple wanted to be able to legally use some of Samsung's patents as well. Also, Apple longed for royalties on Samsung's Windows-based phones, in addition to Android-based phones. All told, Apple figured that Samsung would have owed it one-quarter of a billion dollars in 2010. Yikes!
Of course, none of this matters now; the court is in session and fits are flying. But you'll no doubt have to look at the eventual outcome and then back at this, only to find if Samsung would've been better off just taking the deal.
