Apple tried to license iOS patents to Samsung back in 2010

Apple is famous for defending their product portfolio at all costs, even if it means going to 'thermonuclear war' against the competition. But believe it or not, that actually came close to changing back in 2010, when Apple offered to license its iOS patents to Samsung.

For a mere $30 per phone, or $40 per tablet, Samsung could've been churning out their own iPhone and iPad-like devices, according to AllThingsD. The revelation comes from the testimony of Apple executives in their high-profile legal battle with Samsung, whom Apple accuses, as you probably already know, of copying their iPhone and iPad devices.

“Apple would have preferred that Samsung request a license to do this in advance. Because Samsung is a strategic supplier to Apple, we are prepared to offer a royalty-bearing license for this category of device," Apple told Samsung back in 2010, after the unveiling of the Galaxy S. Rather than immediately going to thermonuclear war over the Galaxy's similarities with the iPhone, though, Apple tried to talk Samsung into entering a licensing agreement.

Apple was even willing to drop the price of the $30/$40 licensing scheme by 20% if Samsung would cross-license their patents to Apple. That would've brought Samsung's licensing costs for each Galaxy handset down to about $24. That's definitely nowhere near as much as Apple makes from an iPhone, but in the aggregate, it could've ended up representing a pretty decent amount to their bottom line in the aggregate. It would've also saved both sides from the endless litigation they're now facing.

There's one more really interesting thing about the revelation: it shatters perceptions that Steve Jobs was completely opposed to any sort of licensing agreements with Android handset makers. Since it's something that Tim Cook has admitted to being open to, this means that it probably can't be said that it never would've happened under Jobs' watch.

Source: AllThingsD

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25 Comments

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$30 per phone and $40 per tablet. Sounds liek the asking price was meant to be turned down. Mcrosoft has likely set a precedence in that Apple won't even get $15.

So let's see here. Apple told Samsung we want you to pay us all this money for a shape, a bezel and rounded corners that existed long before we started making them popular?

lol

Greedy? Ridiculously high fees? You people work in this area? You know how long it takes and how much R&D it costs to come up with new software inventions that make new devices groundbreaking and incredibly simple to use? Apple has been working on iOS functionality for years then they spent more years perfecting it.

Apple is hugely successful American company who are using the American system the way it was designed. Samsung come from Asia where copyright and patents have almost no meaning.

Hey, do you want 'genuine' Prada wallet made in Asia for 10.00?

derekaw said,
Greedy? Ridiculously high fees? You people work in this area? You know how long it takes and how much R&D it costs to come up with new software inventions that make new devices groundbreaking and incredibly simple to use? Apple has been working on iOS functionality for years then they spent more years perfecting it.

Apple is hugely successful American company who are using the American system the way it was designed. Samsung come from Asia where copyright and patents have almost no meaning.

Hey, do you want 'genuine' Prada wallet made in Asia for 10.00?

I'm sure a 4x4 icon display was years in the making <.<

derekaw said,
.

Hey, do you want 'genuine' Prada wallet made in Asia for 10.00?


A lot of Prada, Gucci, Ralph loren etc ARE made in Asia, like your Olympic uniforms, so you are actually buying the authentic article, they just took it off the 'line' and sold it privately. As for your great American company, why dont they make their components in the US then, and hide profits overseas to avoid paying taxes. Sounds like someone has the blinders on here....

Apple is an American success story playing by American rules and I am shocked how many of you want to hate. It is no wonder that the US is in decline when their people do not support successful American companies.

Lets say you owned a high tech company that made electronic stuff and you could get stuff made in the USA and it cost more or overseas in Asia and it cost less? What decision would you make?

Edited by derekaw, Aug 13 2012, 7:58am :

derekaw said,
Apple is an American success story playing by American rules and I am shocked how many of you want to hate. It is no wonder that the US is in decline when their people do not support successful American companies.

Lets say you owned a high tech company that made electronic stuff and you could get stuff made in the USA and it cost more or overseas in Asia and it cost less? What decision would you make?

I still wouldn't be an American company that boasts about how American we are whilst stamping "Made in China" on the back of all my products.

Honda is more American than Apple...

derekaw said,
Apple is an American success story playing by American rules and I am shocked how many of you want to hate. It is no wonder that the US is in decline when their people do not support successful American companies.

Lets say you owned a high tech company that made electronic stuff and you could get stuff made in the USA and it cost more or overseas in Asia and it cost less? What decision would you make?

Lol...Lay off the kool-aid man.

Your money that you give to apple makes the Chinese rich. It also makes apples board and directors rich.

The shareholders you say? Its been many a year since apple paid dividends to its shareholders...

Apple is just like any other corporation out there. Exploit resources to make a profit. Nothing "different" about that.

Apple spent countless hours designing their touchscreen functionality then they went out and patented it. Now others come along and copy the work Apple has done. It is this work that made the iPhone so amazing and so special when it was released. The iPhone changed everything.

Remember internet explorer on a PDA? It was ****. Remember contacts on a PDA? Remember the stick/wand thing you needed to use with a PDA?

Now Samsung want to copy Apples work. Apple has every right to request whatever they think is a fair price for use of their patents in other devices. If you dont want to pay the price then dont steel other peoples ideas. If you dont pay the price then you have to come up with your own ideas to make your devices as good as the iPhone and iPad.

dude they pantented how it worked not the type of screens. apple didnt invent the touch screen, also a pda is very different to a tablet wtf **** are u smoking

DKAngel said,
dude they pantented how it worked not the type of screens. apple didnt invent the touch screen, also a pda is very different to a tablet wtf **** are u smoking

I am talking about how it worked and not the screen. My PDA reference is to show how far Apple took technology. Before Apple we had PDA's with a wand and it was a **** experience. Apples tech got us to here, Apple made the jump to where we are now with touch-screens. Im not smoking anything. Can you even read?

derekaw said,
Remember the stick/wand thing you needed to use with a PDA?
A stylus?

Please refrain from making comments from this point forward.

And I thought Microsoft's $5 per device was greedy, at those prices I'm not surprised they declined, and oh a 20% discount for Apple access to all of Samsung's patents, oh how generous of them...

thealexweb said,
And I thought Microsoft's $5 per device was greedy, at those prices I'm not surprised they declined, and oh a 20% discount for Apple access to all of Samsung's patents, oh how generous of them...

Well the $5 per device is not concrete. Somewhere between $5 and $15 per. But yes still a lot less than what Apple wants per device.

thealexweb said,
And I thought Microsoft's $5 per device was greedy, at those prices I'm not surprised they declined, and oh a 20% discount for Apple access to all of Samsung's patents, oh how generous of them...

Also this is what Apple's first offer was. This is business, there is no way that would have been the final amount as they would have bartered back and forth (if Samsung was interested in actually licensing the patents)

For a mere $30 per phone, or $40 per tablet, Samsung could've been churning out their own iPhones and iPads

Nothing in this article suggests that they were going to license the iOS software. They just wanted Samsung to pay for the use of the Apple's patents in their Android phones.

evacc44 said,

Nothing in this article suggests that they were going to license the iOS software. They just wanted Samsung to pay for the use of the Apple's patents in their Android phones.

Thanks for pointing that out

THolman said,

Thanks for pointing that out

I don't understand what you mean? The article basically says that Sansung would be creating iPads and iPhones, but that was never a possibility. It's just wrong.

evacc44 said,

I don't understand what you mean? The article basically says that Sansung would be creating iPads and iPhones, but that was never a possibility. It's just wrong.


He sincerely thanked you so he could correct the article. That's what he means.

evacc44 said,
For a mere $30 per phone, or $40 per tablet, Samsung could've been churning out their own iPhones and iPads

That's a ridiculously high fee, when Samsung could probably sell them brand new in the low $100 range, like they do with some of their android phones.

No wonder they told Apple what they could do with their fees.