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Top Negotiation Case Studies in Business: Apple
and Dispute Resolution in the Courts
Negotiation strategies drawn from a negotiation case study involving
two of business' largest companies
BY PON STAFF — ON MAY 14TH, 2019 / BUSINESS NEGOTIATIONS

One signi cant negotiation to observe

happened in August 2012. A California jury
ruled that Samsung would have to pay Apple
more than $1 billion in damages for patent
violations of Apple products, particularly its
iPhone. The judge eventually reduced the
payout to $600 million. In November 2013,
another jury ruled that Samsung would have to
pay Apple $290 million of the amount overruled by the judge in the 2012 case.

Con ict Between Apple and Samsung: The Argument

In negotiation, Apple argued that it had lost signi cant pro ts in the smartphone market
to its most signi cant competitor, Samsung, due to blatantly copied features. But
Samsung contended that consumers had purchased its phones for other reasons, such
as Samsung’s bigger screens and cheaper price, according to the New York Times.

Negotiations to Resolve Business Disputes

Given that Samsung is one of Apple’s biggest suppliers, the companies have a strong
incentive to move beyond their dispute and build on their ongoing partnership. Yet
court-ordered mediation between the CEOs of the two companies in 2012 ended in an
impasse. And the disputants continue to ght in courts worldwide, with the advantage
going to Apple in the United States.

Sunk Costs in Negotiations

When negotiators feel they have spent signi cant time and energy in a case, they may
feel they have invested too much to quit. Moreover, the longer they spend ghting each
other, the more contentious and uncooperative they are likely to become. All the more
reason, then, to work hard at negotiation and mediation in an attempt to stay out of
court.

What are your thoughts on the negotiations between large corporations like Apple
and Samsung?

Related Business Negotiations Article: Integrative Negotiations and a Win-Win

Solution: A Place in Business Negotiations? Does a value-creating, win-win negotiation
style have a place in modern business? In integrative negotiations strategies, a
negotiator seeks to maximize his or her value claim while also creating more value for
herself and her opponent. It is a cooperative style that lends itself to forging long-term
agreements based on trust and mutual goodwill. How to integrate these strategies into
your approach to the negotiation table is a different task entirely – how does a
negotiator effectively secure her interests, expand the pie, and forge a relationship with
her counterpart? This article drawn from negotiation research explores ways to build
relationships with your counterpart in business negotiations.