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Samsung denies executives talking with Apple to resolve patent dispute

post #1 of 11
Thread Starter 
In an intriguing twist to the legal battle between Apple and Samsung, the Korean electronics giant has denied a claim made by an Apple attorney at a hearing last week that high-level executives from both companies have met to resolve their dispute.

"We are unaware of any meetings or discussions between the two sides over this matter," Samsung said in a statement to V3.co.uk. Given that the statement directly contradicts information provided by Apple's legal team to a judge last Friday, it is unclear why Samsung is denying the meetings took place while Apple claims they have.

U.S. District Judge Lucy Koh asked the two companies to "all just get along" last week, offering to send a "box of chocolates" to hasten an out-of-court settlement. Apple attorney Harold McElhinny replied that the case had drawn the attention of executives at the "highest levels" of the two corporations.

"Can we get them together?" Koh asked. "They are in fact meeting and talking," McElhinny said, according to Reuters.

The legal disagreement between Apple and Samsung has been steadily heating up. Apple sued Samsung in April. "Rather than innovate and develop its own technology and a unique Samsung style for its smart phone products and computer tablets, Samsung chose to copy Apple's technology, user interface and innovative style in these infringing products," Apple stated in the complaint.



Samsung shot back with its own lawsuits in Korea, Japan, Germany and the U.S. "Samsung is responding actively to the legal action taken against us in order to protect our intellectual property and to ensure our continued innovation and growth in the mobile communications business," the company said in a statement.


After a request by Apple to see prototypes of unreleased Samsung tablets and smartphones was granted by the court, Samsung issued its own request asking to see finalized versions of the so-called iPhone 5 and iPad 3. Apple responded by characterizing the request as "attempts to harass."

Last week, Apple strengthened the language of its accusations, alleging that Samsung was "even bolder" than other competitors in "slavishly" imitating the iPhone and iPad. The company also added a dozen of Samsung's devices, including the Galaxy Tab 10.1 and the Galaxy S II, to its complaint.

The relationship between Samsung and Apple is made even more complicated by the fact that Apple was the company's second-largest client last year with close to $5.7 billion in orders. Apple has said that Samsung remains a valuable component partner in spite of the suit.

"We felt the mobile communication division of Samsung had crossed the line, and after trying for some time to work out the issue, we decided we needed to rely on the courts," COO Tim Cook said.
post #2 of 11
This whole thing is getting weirder and weirder.
post #3 of 11
Quote:
Originally Posted by AppleInsider View Post

In an intriguing twist to the legal battle between Apple and Samsung, the Korean electronics giant has denied a claim made by an Apple attorney at a hearing last week that high-level executives from both companies.

That is not a complete sentence. "... at a hearing last week that high-level executives from both companies." That they what?
post #4 of 11
I'm sorry you did not receive the memo.

Journalism died in the early Nineties. This site is a blog.
post #5 of 11
Quote:
Originally Posted by stereoscott View Post

That is not a complete sentence. "... at a hearing last week that high-level executives from both companies." That they what?

I guess this is what you get writing article in under three minutes.

Close to $5.7 billion, eh? If Apple found a good alternative they would leave Samsung in no time. I know I would. All the money and still their phone division is clueless with making their own. To call them lazy is being kind.
post #6 of 11
The best settlement term is to force Samsung to deliver components such as NAND flash, custom Ax processor...etc to Apple for the next 15 years at no cost!!
post #7 of 11
Now it's "I'll show you mine if you show me yours, but it must stay between us!"
I've accomplished my childhood's dream: My job consists mainly of playing with toys all day long.
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I've accomplished my childhood's dream: My job consists mainly of playing with toys all day long.
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post #8 of 11
Quote:
Originally Posted by AppleInsider View Post

"They are in fact meeting and talking," McElhinny said, according to Reuters.

Considering how big a customer Apple is to Samsung, you bet they do meet and talk...
post #9 of 11
Quote:
Originally Posted by Joseph L View Post

Seriously.

Does anybody think that Apple could just suddenly get parts elsewhere? The boys better learn to get along, because one owns the bat and the other owns the ball.

It would take a long time for Apple to replace Samsung. They would have to get a competitor to build several factories first.

Actually yes, and it would only take a year or two if the contracts were unravelled without Apple losing too much of the upfront investment. As far as taking capacity expansion elsewhere, Apple started that hedge months ago, with existing Fabs, so no new factory needed, just capacity which only requires some months to generate if the Fab can produce quality parts in the testing phase.
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post #10 of 11
I can understand why Samsung wouldn't want word getting out about any meetings. Settlements don't mean that any side is right or wrong. They are generally more like paying for a ticket 'no contest'. Samsung wants the court to make an official 'Apple did a bad thing' because it would strengthen any suits against other companies. Remember Psystar and Apple continuing to go to court. Similar game. Apple wanted the wrongness in the books.

As for the whole parts issue, I could see Apple pulling out. But they likely wouldn't all at once because they have contracts with possible penalties. Rather they would look for companies to supplement Samsung's supply, perhaps investigate alternative's to various parts that are made by other companies etc. And then when the time comes to renew the contracts, Apple wouldn't. Or they would cut things down greatly.

A non tech's thoughts on Apple stuff 

(She's family so I'm a little biased)

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A non tech's thoughts on Apple stuff 

(She's family so I'm a little biased)

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post #11 of 11
Quote:
Originally Posted by charlituna View Post

As for the whole parts issue, I could see Apple pulling out. But they likely wouldn't all at once because they have contracts with possible penalties. Rather they would look for companies to supplement Samsung's supply, perhaps investigate alternative's to various parts that are made by other companies etc. And then when the time comes to renew the contracts, Apple wouldn't. Or they would cut things down greatly.

There's a reason to why Apple signed contracts with Samsung in the first place.
The result of picking alternatives are:
- higher prices (having more companies to produce the same amount a single company does usually results in this, and there currently is no one who can meet Samsung's capacities)
- lower capacity, resulting in higher prices and/or costumers looking elsewhere, because Apple cannot meet the demand. (the i9100 is nice, even if it's a copy. Handing your market shares to one of your prime supplier - because you decided you can go look elsewhere - isn't exactly what I'd call a wise move)

Quote:
Originally Posted by Hiro View Post

with existing Fabs, so no new factory needed, just capacity which only requires some months to generate if the Fab can produce quality parts in the testing phase.

Yeah, IF they can produce quality parts. (Well, at least TSMC managed to get their 40nm process working right away - the TSMC Apple may have producing their A5/A6 whatever ...)
Also: +2-2 does not equal 4 in general. (read: they didn't hedge, they actually started looking for suppliers, so they can meet the demand)
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