Apple Inc. (AAPL) and Samsung Reduce Lawsuits Against Each-other

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Apple Inc. (AAPL) and Samsung Reduce Lawsuits Against Each-other

Apple Inc. (NASDAQ:AAPL)’s lawsuit against Samsung Electronics Co., which increases the number of Samsung devices that Apple argues infringe its products, has again come into question.  On Tuesday, May 8, Apple Apple was confronted with opposition.

Although the two companies remain strongly at odds, both Apple and Samsung have decided to reduce the number of patent infringement claims against each other.

After Apple received complaints from the International Trade Commission (ITC) that the number of complaints against Samsung, which ITC judge E. James Gildea referred to as “unacceptable,”  it was suggested that Apple should consider revising the length of its statement.

ITC ordered Apple to combine all relevant information into a one page table by close of business Tuesday, May 8.  After Apple cut its infringement claims by nearly half, Samsung ceded in droping five of its 12 asserted patents.

“The patents Apple is willing to drop cover technologies ranging from a status bar and touchscreen shielding to the iPhone’s body style.”   Samsung has agreed to drop five claims against Apple, which have reportedly been linked to “patents for technologies related to mobile networks and world time displaying.”

Litigation put aside, company sales and profits would show that both companies are still holding their own.  WSJ reported on Friday 4/27 that “Samsung sold more smartphones in the first three months of the year than Apple Inc. and raked in more than 70 percent of its operating profit from mobile businesses”.

Moreover, “shares of Samsung Electronics Co. shot up nearly 3 percent.  Net profit nearly doubled from a year earlier to a record 5.05 trillion won ($4.46 billion) for the fiscal quarter ended March 31.  Operating profit also logged a record high: 5.85 trillion won, which was in line with the company’s guidance provided earlier this month. Sales rose 22 percent from a year earlier to 45.3 trillion won.”

Comparatively, “Apple’s iPhone and iPad business remains more lucrative. The Cupertino, California-based company earned $11.6 billion in the January-March quarter, more than twice as much as Samsung, even though its revenue was about 10 percent less.”

As the patent infringement debate continues between these two parties, only minor progress has been made in terms of full resolution.


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