Apple 2.0

Covering the business that Steve Jobs built

Apple to Samsung: Your patents are worth half a penny per unit

July 24, 2012: 9:55 AM ET

And by the way, you owe us $2.5 billion in sales, damages and lost profits for ours

Separated at birth? Samsung Galaxy S and Apple iPhone

FORTUNE -- On Monday, Reuters reported that Apple (AAPL) and Samsung were far apart in their second round of court-ordered settlement talks, but we had no idea how far apart.

According to FOSS Patents' Florian Mueller, who has reviewed documents filed Tuesday morning, Apple is demanding

  • $500 million in lost profits
  • $25 million in royalty damages
  • $2 billion for the profits Samsung "unjustly received" using Apple's intellectual property

Meanwhile, for the 2.4% royalties on Apple's sales that Samsung was reportely demanding for use of its wireless technology patents, Apple has offered $0.0049 -- or half a penny per device.

For the patents Apple alleges that Samsung infringed with its Google (GOOG) Android devices, Apple is demanding royalties according to the following schedule:

  • $2.02 for the "overscroll bounce" (or "rubber-banding") '318 patent
  • $3.10 for the "scrolling API" '915 patent
  • $2.02 for the "tap to zoom and navigate" '163 patent
  • $24 for use of any of Apple's design patents or trade dress rights

We haven't seen Samsung's side of the ledger, but it's fair to assume it's considerably different.

Nobody -- not even Apple -- gets everything they ask for in such negotiations. But given the distance between the two sides, it seems unlikely that a settlement can be reached before the trial is scheduled to begin next Monday, July 30.

For a good backgrounder, see Apple v. Samsung: The Patent Trial of the Century in Monday's Wall Street Journal.

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About This Author
Philip Elmer-Dewitt
Philip Elmer-DeWitt
Editor, Apple 2.0, Fortune

Philip Elmer-DeWitt has been following Apple since 1982, first for Time Magazine, and now on the Web for Fortune.com.

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