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Apple wants $2.5B in damages from Samsung, complains Samsung’s patent demands are crazy

Updated 4 years ago
Published Jul 25th, 2012 2:50PM EDT

Apple (AAPL) and Samsung (005930) are tangled in patent battles across the globe that seem like they might never end. This week, the tiresome tussles took an interesting turn when the details of settlement offers presented by each side were made public. Apple’s camp had some pretty stiff demands — the Cupertino, California-based company is seeking just over $2.5 billion in damages in addition to ongoing royalties ranging from $2.02 to $24 per licensed patent per device — and Samsung came back with an offer of its own… as well as some strong words.

Apple spoke with Reuters on Wednesday and complained that Samsung’s demands were unfair. The particular demand Apple takes issue with, according to the report, is a 2.4% royalty fee on devices that make use of Samsung’s protected IP. That would make Samsung’s average royalty on the iPhone, for example, $14.98 per device sold — certainly a lofty fee but well below the tax Apple is currently looking to impose on sales of Samsung phones that make use of Apple patents.

A Samsung spokesperson told Reuters that the proposed rate “is consistent with the royalty rates other companies charge,” and that Apple never made a counter offer. “Instead, it simply rejected Samsung’s opening offer, refused to negotiate further and to this day has not paid Samsung a dime for Apple‘s use of Samsung’s standards-essential technology,” a Samsung spokesperson said.


Zach Epstein
Zach Epstein Executive Editor

Zach Epstein has been the Executive Editor at BGR for more than 10 years. He manages BGR’s editorial team and ensures that best practices are adhered to. He also oversees the Ecommerce team and directs the daily flow of all content.

Zach first joined BGR in 2007 as a Staff Writer covering business, technology, and entertainment. His work has been quoted by countless top news organizations, and he was recently named one of the world's top 10 “power mobile influencers” by Forbes. Prior to BGR, Zach worked as an executive in marketing and business development with two private telcos.