Can Samsung, Apple compromise?

Choi Gee-sung, chief of Samsung Corporate Office

The interminable saga surrounding Samsung Electronics and Apple over smartphone design and technology patents feels more dragged out than the ending to “The Lord of the Rings” films.

So U.S. District Judge Lucy Koh was perhaps speaking for the rest of the world when she urged the two firms’ chief executives to meet again in hopes of settling the case. Samsung and Apple had previously met twice ahead of the trial to discuss settlements but the court-mandated talks didn’t lead anywhere.

Samsung executives in Seoul say they are willing to discuss a settlement with Apple, but insisted that the company isn’t ready to make big compromises just to let the talks go through.

Samsung and Apple have been technology’s oddest bedfellows, a foe in finished products like smartphones and touch-screen tablets, but a friend in parts, with Apple one of Samsung’s biggest customers for chips and flat screens.

Tim Cook Apple CEO

“Samsung will do its best to respect the order from the court. We can’t comment on whether the chance of a peace treaty is any better now than it was before,’’ said the Samsung executive over telephone. Apple’s Korean spokesman Steve Park didn’t provide anything colorful to write about other than the company’s official stance that it will try its best to protect its intellectual property.

As the trial entered its third week, Koh said that she would “appreciate it’’ if the CEOs of the two companies speak face-to-face, or even on the telephone, before the case goes into jury deliberation next week, according to reports from the court in San Jose, California.

Lawyers for both sides assured Koh that Samsung’s Choi Gee-sung and Apple’s Tim Cook would be able to consult again. Shin Jong-kyun, CEO of Samsung’s mobile devices division is currently in the U.S. for business meetings with clients, but it isn’t clear whether he will be meeting with Apple officials.

Samsung and Apple have been engaged in an increasingly ugly intellectual property dispute since early last year, when the American firm filed a lawsuit against its Korean rival, accusing it of “slavishly’’ copying the look and feel of iPhones and iPads in pushing its Galaxy series of mobile Internet devices.

Samsung has countered with claims that Apple has been infringing on its wireless patents and the number of lawsuits traded between the two across the globe is now in double digits.

Koh said that Apple and Samsung have already proved to the world that “there is (patents) in their devices’’ by adding, “Mission accomplished,’’ according to foreign news media. “I see risk here for both sides,’’ the judge was quoted as saying.

Samsung officials say Koh appears to be feeling huge pressure because any ruling would have a huge impact on both companies and the global technology industry as a whole.

According to market research firms, Samsung is widening the gap with the iPhone in terms of its market share for smartphones, although this could mean less once Apple releases its new device, which may or may not be named the iPhone 5.

“The axis of the smartphone market could be altered according to the ruling. This is a very tough and highly-sensitive issue,’’ said another Samsung source.

“Samsung has also been worrying about a deteriorating relationship with Apple, and wonder whether the bad blood is influencing the U.S. company to be more aggressive in diversifying parts procurement channels and buying more chips from Taiwanese and Japanese companies.”

Samsung has been saying that Apple must pay it 2.4 percent of the money taken for every Apple device sold as a royalty payment. Apple says this is too much and that it shouldn’t pay more than $1 per device, based on Samsung’s commitment to FRAND (fair, reasonable and non-discriminatory) principles.

“Samsung believes it’s more powerful in fourth-generation (4G) technology in terms of its patent portfolio. That means, the Korean company couldn’t be in a hurry to immediately accept a truce from Apple,’’ said a legal expert based in Seoul.

Officials from Samsung expect Apple to treat the company as a “constructive and sincere business partner,’’ not just as a major parts suppliers. <The Korea Times/Kim Yoo-chul>

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