Google Admits Offering To Back Samsung In Apple Case

Apple lawyers on Tuesday presented evidence revealing that Google offered to cover some of Samsung‘s legal costs in its epic court battle against Apple over smartphone patents, in a glimpse into how the two companies have aligned themselves in the multi-billion pound dispute over mobile intellectual property.

The iPhone maker disclosed emails and letters in which Google executives agreed to pay Samsung’s legal costs related to two of the five patents asserted by Apple in the case, as well as damages relating to these patents in the event of an Apple victory.

Secret Google deal

Apple also introduced a videotaped deposition by James Maccoun, a Google lawyer, verifying the emails, which date from 2012. “This is an offer that Google made. I have no reason to believe that has changed,” Maccoun said of the agreement.

Google’s agreement with Samsung came under the “Mobile Application Distribution Agreement (MADA)” between the two companies, which allows Android licensees to use Google’s technology in their products, according to Maccoun.

The testimony did not disclose how much Google had agreed to pay, or whether it has paid for any of Samsung’s costs to date.

Apple introduced the testimony to undermine one of Samsung’s key arguments: that Apple’s legal attack should have targeted Google, not Samsung, since the technology in question largely relates to Google’s mobile Android operating system. The case is therefore really an attack on Android, according to Samsung’s arguments.

Apple, on the contrary, is arguing that the Google testimony shows that Samsung controls what technology is used in its smartphones and tablets.

Patent violation

Samsung is the largest maker of Android-based devices, taking in 31 percent of the revenues in a smartphone market worth $338bn in 2013, according to estimates by business publisher Bloomberg. Apple’s products accounted for 15 percent of that market, according to Bloomberg.

Apple argues Samsung’s products violate five patents relating to technology used in its iPhones and iPads, including features such as slide-to-unlock, automatic spelling correction and a feature allowing a user to make a call by clicking on a phone number in a Web page or email. Apple argues the infringements are worth about $2.2 billion (£1.4bn) in damages, while Samsung values the patents at about $38m in royalties.

For its part, Samsung has accused Apple of violating two Samsung patents worth about $6m in royalties. Apple laywers have accused Samsung of intentionally underestimating the value of the patents involved in the case in order to lower any damages it may eventually have to pay.

The current case, taking place in a federal court in San Jose, California, is heading for its conclusion, with Samsung having finished presented its case against Apple on Thursday and closing arguments scheduled for Monday.

Damages

Apple was awarded $930m in damages in the companies’ first US trial two years ago, but wasn’t able to secure a ban on US sales of the Samsung devices found to infringe its patents in that case, something the company has said it considers more important than compensation.

Android’s popularity has surpassed that of Apple’s iOS with the growth in demand for cheaper smart devices, according to recent Gartner figures. Android became the most popular tablet operating system in 2013, overtaking Apple’s iOS for the first time, Gartner found. Worldwide tablet sales reached 195.4 million units for the year, with Android on 62 percent, more than doubling its market share from the previous year. Apple’s share of this market fell to 36 percent for the year, Gartner said.

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