One of the highest profile tech feuds in history appears to have ended today as Apple Inc. (NASDAQ:AAPL) and South Korean competitor Samsung agreed to abandon their patent suits against each other around the globe. As Bloomberg reports, lawsuits are being dropped by both firms in eight countries, including Japan and South Korea in Asia, England, France, Italy, Germany, and the Netherlands in Europe, and Australia in the Pacific region.
The struggle has had a somewhat peculiar character from the beginning, since Apple (AAPL) has simultaneously excoriated Samsung as little more than a glorified copycat and pirate, while using the Korean company as one of the chief manufacturers of iPhone processors. The Cupertino company has been suing Samsung with one hand while awarding it lucrative contracts with the other.
In effect, Apple has been enabling the very actions it has likewise been suing Samsung for. The secrets of iPhone architecture have been constantly revealed to the Korean firm, enabling easy copying if Samsung is, indeed, stealing Apple’s thunder. The large amounts of money paid out to Samsung from Apple’s coffers have likewise enabled robust counter-litigation and helped fund a steady stream of Galaxy smartphones to compete with the Cupertino giant’s own products.
The student of history is reminded of the 17th century Dutch, who, during their revolt against Spanish rule, sold Spain tens of thousands of muskets and other weapons, which were immediately used against their armies.
Several lawsuits are continuing within the United States itself, but these are minor compared to the massive litigation of the recent past. Apple likely sensed that its legal efforts against Samsung were becoming a losing game when it recently sought more than $2 billion in damages from the Korean firm and was awarded $120 million instead. Most courts and jurors probably feel that the fray has continued to the point of absurdity, and Apple has decided that the benefits of major lawsuits are now outweighed by their costs.
Furthermore, Apple will apparently need Samsung for 2015’s A9 processor. TSMC, the current substitute manufacturer, can only offer 16 nanometer core architecture, while Samsung can supply cutting-edge 14 nanometer semiconductors that will win a competitive edge for the Cupertino company. Given the sinking potential for large court awards and the need for further collaboration, Apple (AAPL) appears to be ready to finally let bygones be bygones – or at least most of them.
