Name: Rosann G.

Cabante

Course & Section: Bachelor of Arts in Foreign Service (FS301)

Subject: International Negotiations (INNN17F)

Professor: Prof. Jumel Estrañero

Two Technology Giants: Patent Wars between Samsung vs. Apple and the Use of Business
Negotiations

Introduction:

The two technology giants Samsung v. Apple is a long running dispute. These two big
manufacture companies have been fighting with each other for years. But I will be focusing on
just one issue out of many, and that is whether Samsung’s infringement of the way Apple’s
phone look should be punished by forcing Samsung to surrender every single money they have
made on the sale of those devices or whether the damage should be much lower and reduced to
limit them only to the value of a particular design that Apple came up with. The companies have
been in a bitter war over a featured designs that can be found through their phones and tablets for
the past years. Way back in April 2011, Apple filed a case against Samsung for the reason of
accusing that Samsung copies their looks and features when they launch its Galaxy phones. Also,
Samsung did countersue the Apple Company for not paying any due to using its wireless
transmission technology. These two giant companies keep on accusing each other because of the
accusations of how they copy each other’s appearance and features of their phones and tablets.
Even today, from phones, tablets to watches we cannot deny that Samsung and Apple have
always create same looks and functions which gave consumer an option in buying gadgets stuffs.

Body:

Defining Patents

Generally, there are two types of Patents. First is the Utility Patent, it is one that is meant
to cover the way things work. It can prohibit other companies to sell their entire invention
without consent. Second is the Design Patent, which covers the way things look irrespective of
how they work. It is meant to cover these ornamental features that do not affect the utility of a
particular device.

The only issue here is not only those patents, but the concern is also that whether or not Apple
has reduced the price fairly small features. Having patents or not they can easily make a
bankruptcy to an entire line of Samsung product

Patent Battle Between Samsung and Apple Companies

The first Apple v. Samsung trial, which took place in 2012, enthralled Silicon Valley and
the computer sector because it revealed the inner workings of two traditionally private
businesses. It was only one of several examples around the world in which competitors sparred
in the marketplace as well as in the courtroom. Although the two firms completed their foreign
disputes in 2014, they are still fighting in US courts as of May. However, the devices at issue in
the case haven't been sold in years and predate Samsung's rapid climb in the smartphone market.
Another dispute involving newer smartphones, such as the Galaxy S3, was also pending between
Apple and Samsung. Apple was granted $1.05 billion in damages for Samsung's infringement in
the first trial, which took place in 2012. Samsung, however, filed an appeal, resulting in two
damages retrials and a Supreme Court hearing on how design patent damages should be
determined. Samsung contended that the elements it infringed on were only a minor part of the
phone, and that it should only be required to pay damages for what it infringed on, rather than the
complete product. Here's another way to think about it: If a corporation has a patent on only the
cup holder of a car, it shouldn't be allowed to profit from the entire vehicle. While Apple's three
design patents only cover cosmetic aspects of iPhones, the company claims that they are
essential to making the phones look nice and operate well. It said that they couldn't be isolated
from the gadget as a whole, and that its damages should include all of Samsung's earnings from
infringing phones. (Tibken, S. 2018).

Court’s Ruling Between the Samsung vs. Apple Case

In 2012 court’s trial, the US jury had ruled that Samsung company must pay to the Apple
for more that $1.5 Billion for the cause of copying its features in iPhone. Then it come up with
the retrial wherein the decision of the court was to reduced its penalty from $1.5 Billion to $600
million due to a jury’s error. However, the jury added that Samsung had to pay 290 million for
infringing the Apple’s patent. Both companies decided to settle things outside the US. Finally in
2016, the US supremely court’s ruling is the Samsung company should pay 100% of its of its
profits. However, the Supremes Court reject its ruling by saying “paying all profits is wrong, as
the infringed patents are only a small part of the devices and not the full devices”.

Analysis:

(Image above by Smith, C. 2012)

Given on the premises above, the companies let a California district court know they’d
reach the settlement, and a judge signed the order dismissing all suits with prejudice, it means
another case cannot be opened using the same issues and claim. It is said that both companies
will be legally required to remain silent on the details when asked for a comment about the case.

Business Negotiation as a Tool for a Successful Agreement

Both parties had expressed a desire to avoid a court war. Given that Samsung is one of
Apple's largest suppliers, the two businesses have a strong reason to put their differences aside
and continue working together. However, the CEOs' two-day mediated meetings in late May
ended in a deadlock, with both parties unwilling to back down from their positions. The case
proceeded to trial twice, with Apple winning more than $409 million in the end. Mediation as a
dispute resolution strategy between business negotiators is significantly less likely to succeed
when the parties are reluctant participants than when they are actively engaged in finding a
solution, as this example of business negotiation illustrates. When negotiators believe they have
engaged too much time and energy in a matter, they may feel compelled to quit. Furthermore, the
more time they spend fighting, the more acrimonious and uncooperative they will become. What
is the takeaway? When a business issue arises, you should always try to resolve it through
negotiation or mediation before going to court. (Staff, P. 2020).

A Loss for Samsung Creates Major Impact on Androids

A loss by Samsung might be disastrous for smartphone innovation, particularly in terms

of design. In the future, a Supreme Court decision will create legal precedent for smartphone
manufacturers. If Apple prevails, any corporation might file a patent infringement lawsuit in a
lower court. The opposing corporation would have no choice but to pay the full amount of the
lawsuit's award. Every year, manufacturers make small tweaks to the design of their flagship
models. The most effective of these are included in the next generation of gadgets. They aren't
plagiarized or, as Apple would put it, "stolen." However, they are used by every firm to improve
all phones. This invention sharing is beneficial to everyone in the process of developing better
devices. Manufacturers fight for our business, and device prices fall. A Samsung victory is the
best outcome if we want to keep getting cheaper, better-designed gadgets that are built on
technological innovation. (Schmidt, C. 2016)
 For the android fans they see nothing similar between Samsung and iPhone except for
their features. During 80s Samsung electronics division was focused primarily on the
semiconductor business. And their CEO named Lee Byung-Chull spoke with Steve Jobs on
several Negotiations. In fact, these two have already met in person at Samsung’s offices in Seol.
Their friendship was over when Steve accused Samsung and called them the “copycat” for over
Samsung took the idea of Apple for which their Samsung Galaxy operating by Google’s
Android. And that moment, from the Apple’s number one ally became their number one enemy.

Conclusion:

The long history of battles between Samsung and Apple started in 2011, it is a proof that
Steve was very prepared in protecting its intellectual property at any cost. The seven year of
patent war between these two giants company begins on how Samsung’s smartphones and tablets
were infringing on Apple’s Patent. In fact, before any lawsuits happened, Apple approached
Samsung and told the case. And because these two have a history of friendship and cooperation,
Apple is willing to out on deals with Negotiations. They proposed an agreement where it states
that Samsung should pay Apple at least $30 for every phone sold to the market and another $40
for every tablet sold. But Samsung declined into the agreement because they believe that they
didn’t that their products infringed on any Apple’s patent. Until the following years, Apple
issued a lawsuit to Samsung by the accusations of stealing features that Apple had patented.

Recommendation:

Consumers will always look for tech features rather than patents. Samsung took the
chances where they see what the consumer wants while Apple stays on how they features will
looks like for a long term. Sometimes we normally patent our innovations in some unexpected
ways. The following are the recommendations.

1.) Protect your idea by understanding what your claim is as “new” and which is not. Once
you know what are the agendas that hinders you in achieving your patent rights, it is easy for you
to do research on the piece of the work of others and how it differs from your invention.

2.) Always apply for patent rather than hiding your inventions. There are several reasons
why you should patent your product, one of them is that if your invention is protected by patent,
you can have the freedom to negotiate it with triple to its price from the bigger companies that is
interested in buying your invention.

3.) In the case of Samsung vs. Apple, it is important to file more than one design patent in
every invention that you have created for the protection of your invention. It is very important to
have background research first before you introduce your new inventions to prevent the risks of
infringing a patent. Because sometimes, when we claim our own inventions, we don’t really
know if it is already existed or not.
References:

Dolin, G. 2016 Samsung vs. Apple. Smartphone Patent Wars.

Retrieved from: https://youtu.be/14tpQmM79rw

Santoshi, K. (n.d) Apple V. Samsung. Case Summary

Retrieved from: https://indianlegalsolution.com/apple-v-samsung-case-summary/

Schmidt, C. (2016). How the Samsung vs. Apple Supreme Court Battle Affects Android

Retrieved from: https://www.nextpit.com/samsung-vs-apple-supreme-court

Smith, C. (2012). Why Apple vs. Samsung $1 Billion Verdict is Correct and Should Stand.

Retrieved from: https://www.androidauthority.com/why-apple-vs-samsung-1-billion-verdict-

correct-should-stand-113657/

Staff, P. (2020). Negotiation in Business. Apple and Samsung's Dispute Case Study.

Retrieved from: https://www.pon.harvard.edu/daily/business-negotiations/apple-v-samsung-an-

example-of-negotiation-in-business-gone-bad/

Tibken, S. (2018). Apple and Samsung Finally Settle Their Patent Dispute

Retrieved from: https://www.cnet.com/tech/mobile/apple-and-samsung-finally-settle-their-

patent-dispute/
Dear Prof. Estrañero,

Before this semester ends I would like to say thank you for your teachings and wisdom you have
given on us. You were so sincere and patience on us since day one. We appreciate your kindness
and understanding every time we need help. You have shown us that in our studies, there will be
no pressure but at the same time we are learning. I really enjoyed the class because of your
positive learning environment. Words can't explain how grateful I am to you. Thank you again
sir for the exciting semester, and still hoping that we will be able to see each other again next
sem. Have a wonderful day ahead and keep safe to you and your family sir.