Samsung considers bid for InterDigital as Apple patent dispute heightens

Posted:
in General Discussion edited January 2014
South Korean electronics giant Samsung is said to be taking a look at InterDigital's patent portfolio and may consider bidding for the company as its legal battle with Apple escalates.



Two people with knowledge of the matter said Samsung has been approached to make a bid on Interdigital and is examining the company's patents, as noted by Bloomberg. The sources also corroborated reports that Apple and Google are potential bidders.



Apple and Google were reported as interested in InterDigital's intellectual property last month. Investors drove the Pennsylvania-based company's stock price up 50 percent on the rumor that the technology giants may bid.



InterDigital CEO William Merritt said in April that its patents, which include inventions related to high-speed mobile networks, are "deeper and stronger" than those of Nortel, which recently sold its 6,000 patents to Apple and a consortium of companies for $4.5 billion. Analysts have suggested that InterDigital could sell for more than $5 billion.







Major technology companies, especially those in the mobile industry, have expressed significant interest in intellectual property acquisitions as of late. After the recent bidding war between Apple and Google over the Nortel cache soared past analyst expectations, several companies, including Kodak, have considered selling their patents to capitalize on a so-called "patent arms race" that Google General Counsel Kent Walker has called an expensive path toward "mutually assured destruction."



Given the high-profile legal disagreement between Samsung and Apple, it's possible that the Korean electronics company is interested in InterDigital in order to gain the upper hand in the dispute while preventing Apple from adding to its arsenal. Apple first sued its rival in April, alleging that it had copied the look and feel of its iPhone and iPad. Samsung fired back with its own accusations of infringement.



On Monday, it was revealed that an Australian court had blocked sales of Samsung's Galaxy Tab 10.1 because of its ongoing patent infringement dispute with Apple. Samsung responded to the decision by claiming that, in spite of the ruling, the device will go on sale in the country in the "near future."
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Comments

  • Reply 1 of 25
    Gonna get interesting!
  • Reply 2 of 25
    iqatedoiqatedo Posts: 1,603member
    I propose that a new web site be established, Applelawsuit.com, so that AppleInsider can get back to what really matters - Apple innovation.



    Believe it or not Applelawsuit.com is actually a parked domain - amazing!



    All the best.
  • Reply 3 of 25
    Apple is in a much better position to acquire patents from other companies especially from distressed one because Apple has over $76B short/long term securities, cash equivalent, and cash.
  • Reply 4 of 25
    Apple should just buy Samsung and disolve the company.
  • Reply 5 of 25
    Quote:
    Originally Posted by iCupertinoMDN View Post


    Apple is in a much better position to acquire patents from other companies especially from distressed one because Apple has over $76B short/long term securities, cash equivalent, and cash.



    Apple appears to be rather stingy with its cash so the best option would be to regroup the Rockstar consortium and buy it as a group. I'm sure all the other members of the consortiuim want to blunt Android so that would be the wisest decision even if Apple pays the bulk of the cost. That'll also keep the Feds happier. As a shareholder, I see grabbing these patents as more important than immediate dividends. Call it a hedge for the future.
  • Reply 6 of 25
    Quote:
    Originally Posted by Constable Odo View Post


    Apple appears to be rather stingy with its cash so the best option would be to regroup the Rockstar consortium and buy it as a group. I'm sure all the other members of the consortiuim want to blunt Android so that would be the wisest decision even if Apple pays the bulk of the cost. That'll also keep the Feds happier. As a shareholder, I see grabbing these patents as more important than immediate dividends. Call it a hedge for the future.



    Just my thought. Would also be interesting if they hunted for Kodak maybe? One thing though - what's the agreement among the consortia members?



    Problem is that still it helps in the battle with Samsung and other tech companies. The problem with trolls persist.
  • Reply 7 of 25
    nairbnairb Posts: 253member
    Quote:
    Originally Posted by Constable Odo View Post


    Apple appears to be rather stingy with its cash so the best option would be to regroup the Rockstar consortium and buy it as a group. I'm sure all the other members of the consortiuim want to blunt Android so that would be the wisest decision even if Apple pays the bulk of the cost. That'll also keep the Feds happier. As a shareholder, I see grabbing these patents as more important than immediate dividends. Call it a hedge for the future.





    May help keep the Feds happier, but they could still stand in the way. They took a while to rule OK fo rapple to go arter Nortel, and if my understanding is correct, Apple bought a big chunk of the Nortel patents outright, probably with some will not use these against you clause for members of the consortium.



    My guess it the Feds will look more closely at an apple InterDigital bid than they did the Nortel bid.



    Would not rule out a Google, Samsung, HTC, Sony, LG consortium either.
  • Reply 8 of 25
    Quote:
    Originally Posted by FriedLobster View Post


    Apple should just buy Samsung and disolve the company.



    Great idea! We all want the iPad 3 to cost $500,000!

    http://en.wikipedia.org/wiki/Samsung
  • Reply 9 of 25
    shompashompa Posts: 343member
    Counsel Kent Walker has called an expensive path toward "mutually assured destruction".



    Dear Google: No one sues you as long as you invent instead of copying others stuff. No one has sued you for your great search engine because you invented it. Android in other hand, you bought and cloned iPhones GUI. Google is a great company with talented people.



    If Palm can create a great OS like WebOS, Google can also create something them self.
  • Reply 10 of 25
    shompashompa Posts: 343member
    Quote:
    Originally Posted by FriedLobster View Post


    Apple should just buy Samsung and disolve the company.



    It is easier for Apple to stop using Samsung as a component supplier.



    Apple orders a component. Often even paying for building factories to build the specific part Apple need (2005 Apple gave 1 billion to Samsung to build their NAND flash factories).



    Samsung is a bad company since they produce components for Apple and six month later same components ends up in Samsung clones.



    If Apple was Evil:

    Buy ARM and revoke the licenses for all ARM developers. Apple would have the only working smartphone/tablet until Intel can (if they ever can) produce a low power SoC.
  • Reply 11 of 25
    gatorguygatorguy Posts: 20,618member
    Quote:
    Originally Posted by shompa View Post


    Counsel Kent Walker has called an expensive path toward "mutually assured destruction".



    Dear Google: No one sues you as long as you invent instead of copying others stuff.



    So why is Apple sued so often?
  • Reply 12 of 25
    galbigalbi Posts: 968member
    Quote:
    Originally Posted by FriedLobster View Post


    Apple should just buy Samsung and disolve the company.



    You dont know anything about consolidation.
  • Reply 13 of 25
    Quote:
    Originally Posted by shompa View Post


    It is easier for Apple to stop using Samsung as a component supplier.



    Apple orders a component. Often even paying for building factories to build the specific part Apple need (2005 Apple gave 1 billion to Samsung to build their NAND flash factories).



    Samsung is a bad company since they produce components for Apple and six month later same components ends up in Samsung clones.



    If Apple was Evil:

    Buy ARM and revoke the licenses for all ARM developers. Apple would have the only working smartphone/tablet until Intel can (if they ever can) produce a low power SoC.



    All the components (except A5, which Samsung doesn't use anyway) are designed by Samsung. Why shouldn't Samsung use them in their "clones"?
  • Reply 14 of 25
    blastdoorblastdoor Posts: 1,922member
    Quote:
    Originally Posted by IQatEdo View Post


    I propose that a new web site be established, Applelawsuit.com, so that AppleInsider can get back to what really matters - Apple innovation.



    Believe it or not Applelawsuit.com is actually a parked domain - amazing!



    All the best.



    I agree!
  • Reply 15 of 25
    blastdoorblastdoor Posts: 1,922member
    If interdigital's patents are as valuable as they say they are (big if), then apple can and will outbid everyone to get them. Why? Because apple makes more money from selling phones than any other company in the world, so these patents are worth more to apple than any other company in the world.
  • Reply 16 of 25
    If the gov is already up Apple's butt because of the Nortel purchase then just imagine what will happen if Apple buys InterDigital.



    Bad spot for Apple to be in at the moment concerning patent purchasing.



    jmho
  • Reply 17 of 25
    galbigalbi Posts: 968member
    Quote:
    Originally Posted by Blastdoor View Post


    If interdigital's patents are as valuable as they say they are (big if), then apple can and will outbid everyone to get them. Why? Because apple makes more money from selling phones than any other company in the world, so these patents are worth more to apple than any other company in the world.



    Because every last one of the 8,800 patents are phone related.
  • Reply 18 of 25
    newbeenewbee Posts: 2,055member
    Quote:
    Originally Posted by Gatorguy View Post


    So why is Apple sued so often?



    Follow the money!
  • Reply 19 of 25
    orlandoorlando Posts: 601member
    Quote:
    Originally Posted by iCupertinoMDN View Post


    Apple is in a much better position to acquire patents from other companies especially from distressed one because Apple has over $76B short/long term securities, cash equivalent, and cash.



    Just because Apple can afford to overpay for these patents doesn't mean overpaying is a good idea. The Nortel patents went for much more than anyone would have guessed. InterDigital stock price has gone up by 50%. Is there really nothing better Apple could do with $5 billion?
  • Reply 20 of 25
    mhiklmhikl Posts: 471member
    Apple should at least bid to maximise these copycats' costs to purchase the patents. I could see an Apple, M$, RIM etc agreement - Google and Android are the enemy and must be brought to their knees, their noses in the sewer, their privates torn off, their offspring sold as cat food, . . .
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