The iPhone and Galaxy handset makers
issued nearly identical statements announcing the global ceasefire while
vowing to pursue ongoing litigation in United States, which analysts
say involves much bigger amounts of potential damages.
The
South Korean and US tech giants declined to disclose the terms of the
deal but said it did not involve any licensing arrangements and the
companies are continuing to pursue the existing cases in US courts.
The agreement ends patent disputes in Australia, France, Germany,
Italy, Japan, the Netherlands, South Korea, Spain and the United
Kingdom, countries where the smartphone market leaders had engaged
armies of lawyers for what analysts said were questionable gains.
"Their
fighting spirit has weakened and they now seek to focus on the key
battleground, US," said Young Park, a Hyundai Securities technology
analyst in Hong Kong.
"They now see little need to
wage a war around the world, which will only fatten the bills of
lawyers," he said, adding the deal raised the possibility of a final
license agreement settling how the companies use each other's patented
technologies.
Apple and Samsung together dominate
the global smartphone market with a combined market share of 37.1
percent in the second quarter of 2014, according to Strategy Analytics.
Their
legal battle began in the United States in 2011 when Apple first filed a
suit alleging Samsung ‘slavishly’ copied elements of its iPhones, the
device which launched the industry.
Days after the
initial Apple suit was launched in the United States, Samsung sued its
Cupertino, California-based rival in South Korea, Japan and Germany,
kicking off a series of tit-for-tat cases that spread around the world.
The
litigation raged even as business flourished between the two technology
companies, with Apple depending heavily on Samsung for components such
as chips and liquid crystal displays.
An industry
source familiar with the matter said “the companies decided that there
was no merit in dragging on these lawsuits". The source declined to be
identified due to the sensitivity of the matter.
Nicholas
Rodelli, an attorney and adviser to institutional investors for CFRA
Research in Maryland, said there had been a trend towards gradual
de-escalation of patent hostilities between Apple and Samsung. "It's not
yet clear whether this is signal or noise, in terms of prospects for
global settlement," he said.
In the United States, Samsung is appealing the result of a blockbuster 2012 trial, seeking to undo USD 930 million in damages.
While
Apple says those damages should stand, the iPhone maker last week
withdraw its request for a permanent sales ban against several older
Samsung phones, according to court filings.
Separately,
Apple went to trial against Samsung on a second batch of patents
earlier this year and won a USD 120 million verdict. Apple still has a
request pending for a sales ban against newer Samsung phones in that
proceeding.
On another front, Samsung is fighting
Microsoft Corp over allegations it refused to make a royalty payment
last year on patent licenses after US company announced plans to acquire
Nokia's handset business.
Meanwhile, Apple and
Google Inc's Motorola Mobility unit agreed in May to settle all patent
litigation between them over smartphones.
Apple
and companies that make phones using Google's Android software, such as
Samsung's top-selling Galaxy series, have filed dozens of such lawsuits
against one another around the world to protect their technology.
Samsung Electronics shares closed down 1.2 percent on Wednesday, compared with the wider market's 0.3 percent drop.
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