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Apple tells Samsung its technology is nearly worthless

An analysis of Apple’s (AAPL) settlement offer to Samsung (005930) reveals just how much Apple thinks Samsung’s technology is worth. FOSS Patents patent expert Florian Mueller on Tuesday broke down a settlement proposal Apple recently offered Samsung. Among Apple’s demands are $2 billion in retribution for Samsung’s illegal use of Apple’s design patents, $500 million in lost profit and $25 million in royalty damages.

In terms of an ongoing arrangement, Apple is looking for royalties of $2.02 per device using its ‘318 patent (over-scroll bounce), $3.10 for its ‘915 patent (scrolling), $2.02 for the ‘163 patent (tap to zoom) and $24 per device for the use of any Apple design patent.

And what is Apple offering Samsung in return? $0.0049 per device for each infringed patent.

So, on the 30 million iPhones Apple is expected to have sold in the second quarter this year, Samsung would have made $147,000 in licensing fees per patent from Apple. On the other side of the table, Samsung would owe Apple millions in licensing fees and billions in lost profits and damages. Seems fair.


Zach Epstein

Zach Epstein has worked in and around ICT for more than 15 years, first in marketing and business development with two private telcos, then as a writer and editor covering business news, consumer electronics and telecommunications. Zach’s work has been quoted by countless top news publications in the US and around the world. He was also recently named one of the world's top-10 “power mobile influencers” by Forbes, as well as one of Inc. Magazine's top-30 Internet of Things experts.

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