Court to hear interesting defence
Jobs's Mob had an interesting defence when it came to its US court case versus Samsung. In the case Apple claimed that while Samsung owed it billions for using its patents it did not owe Samsung money for using its patents.
Apple claimed Samsung wanted a higher patent royalty than Apple pays to other companies, at a rate the South Korean company has never sought from any other licensee. Samsung is demanding a 2.4 percent rate on the "entire selling price" of Apple's mobile products, Apple said in the court filing.
It said that Samsung's royalty demands were multiple times more than Apple has paid any other patentees for licenses to their declared-essential patent portfolios. Samsung said that its royalty demands were consistent with industry norms. Our guess is that Apple is so used to bullying other companies to charge it less it thinks that what it thinks is normal is the going rate.
However when Apple looks at what it thinks Samsung owes it for its patents the figure comes to most of the cost of making Samsung's gear. Samsung pointed out that Apple never made a counter offer to its original request. It just refused to pay at all.
So far Apple has not paid Samsung a dime for Apple's use of Samsung's standards-essential technology.
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Nick Farrell
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