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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.

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Zach Epstein

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.