Samsung, Google Inc (GOOG) Announce Patent License Deal

Samsung, Google Inc (GOOG) Announce Patent License Deal
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Samsung Electronics Co., Ltd. (LON:BC94) (KRX:005930) entered into a deal with Google Inc (NASDAQ:GOOG) Inc regarding technology patents, which further strengthens an existing alliance to wither away the stiff competition in the market from rivals such as Apple Inc (NASDAQ:AAPL).

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Deal to further strengthen Android platform

Samsung Electronics Co., Ltd. (LON:BC94) (KRX:005930) and Google are strong supporters of the Android mobile operating system. Both the companies did not reveal anything on the financial terms of the deal related to the existing patents as well as those filed in the next 10 years. However, the agreement does not transfer the ownership of a patent from one company to another, nor does it allow a company to use the other’s patent in litigation with other companies such as Apple Inc (NASDAQ:AAPL).

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Both the companies did not disclose if the deal was related to Android or will go beyond that. Android, at present, is the most dominating platform that powers four of every five smartphones sold worldwide. According to the companies, the agreement would prove to be beneficial for them in research and development of current and future products.

According to Allen Lo, Google’s deputy general counsel for patents, “companies can reduce the potential for litigation and focus on innovation.” Samsung and Google have struck the deal at a time when Apple and Samsung are deep into patent litigation.

Samsung / Apple patent fights

The iPhone maker filed a case against Samsung Electronics Co., Ltd. (LON:BC94) (KRX:005930) for copying the designs and look of its iPhone and iPads, which dates back to 2011. The California court ordered both companies to negotiate and try to settle the legal fight before the trial of the new case starts in March. The accusation from Apple covers the latest smartphones of the Korean firm like the Galaxy S3.

A year before, a federal jury in California gave its decision that Samsung has breached some of Apple’s patents and awarded the iPhone maker damages of approximately $1 billion.

Florian Mueller, an intellectual-property consultant in Germany who specializes in software patents, wrote on his blog, “Samsung and Google own a lot of patents, but they haven’t been able to gain much leverage from those patents against Apple, Microsoft and others.”

Samsung did not comment on the developments, and neither any word came from the Apple Inc (NASDAQ:AAPL) over the issue. Google and Samsung Electronics Co., Ltd. (LON:BC94) (KRX:005930), who are already working in close collaboration with each other over mobile devices, would most probably not get into legal brawls after this deal into intellectual property.

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Aman is MBA (Finance) with an experience on both Marketing and Finance side. He has worked as a Risk Analyst for AIR Worldwide, and is currently leading VeRa FinServ, a Financial Research firm. Favorite pastimes include watching science fiction movies, reviewing tech gadgets, playing PC games and cricket. - Email him at
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