CASE STUDY: Overview of the conflict between Apple

and Samsung in 2011

Outline case
1. Introduction
The legal dispute between Apple and Samsung is one of the most notable cases in
the technology industry. It began in 2011 and primarily revolved around
allegations of patent infringement concerning the design and technology of mobile
devices, particularly the iPhone and Samsung's Galaxy series.

 Key Points of the Dispute:

 Patent Infringement Allegations: Apple accused Samsung of copying the
design and interface of the iPhone, violating patents related to touchscreen
technology and software features. In response, Samsung counterclaimed,
alleging that Apple infringed on some of its patents.
 Global Legal Battle: The lawsuit extended beyond the United States,
affecting multiple countries, including South Korea, Japan, and several
European nations. Each side presented claims and defenses in various
courts worldwide.
 Impact on the Industry: This legal battle significantly influenced the tech
industry, shaping how companies protect their intellectual property. It also
prompted other firms to reevaluate their product design and development
strategies.

2. Introduction to the 2 parties (context of the negotiation)

The negotiations between Apple and Samsung take place in the context of competition in
the technology industry, most prominently in the field of mobile phones and smart
devices. The relationship between them goes through many different stages, from
production cooperation, direct competition, to intellectual property disputes. Negotiations
between Apple and Samsung often revolve around the supply of components, patent
ownership and technology security issues.
Background of Apple:
- Apple is a leading American technology company, famous for products such as
iPhone, iPad and MacBook. To ensure product quality and optimize the
production process, Apple cooperates with many major component suppliers,
including Samsung, to supply OLED screens, memory chips, and other important
components.
- Apple goal in the negotiations is to control component costs well, keep technology
confidential and reduce dependence on direct competitors in the supply chain.
Background of Samsung:
- Samsung is a major South Korean technology corporation that operates in a variety
of fields such as electronics, chip manufacturing, displays, and finance. Not only is
it a major supplier of components to Apple, but Samsung is also a direct
competitor in the smartphone market with the Galaxy product line.
- Samsung goal in negotiating with Apple is to maintain a large supply partnership,
protect intellectual property interests, and ensure that the terms of cooperation do
not affect its competitive advantage in the market.
Despite their long-term cooperation, Apple and Samsung have also had many conflicts
over intellectual property issues. For years, the two sides have had tense legal battles
when Apple accused Samsung of copying the design and features of its products.
However, despite the competition in the field of smartphones, the two sides still maintain
a cooperative relationship in the supply of components, exploiting the advantages of the
global supply chain.
Currently, Apple is looking for alternative suppliers to minimize its dependence on
Samsung, such as switching to BOE and LG to provide OLED displays. About Samsung
continues to invest in research and development to expand its presence in other segments,
not only in the component segment.
The relationship between the two sides represents a combination of cooperation and
competition. Both sides understand the common interests of cooperation but are
constantly looking for ways to optimize competitive advantages. Negotiations between
Apple and Samsung have always been complicated, requiring the two sides to strike a
balance between cooperation and competition in the ever-changing technology market.
3. Process/Developments in the Negotiation
The Process of Conflict Between Apple and Samsung
Initial Context
In 2010, Apple launched the iPhone 4, marking a significant turning point in the
smartphone industry. The success of the iPhone positioned Samsung, with its Galaxy
product line, as a formidable competitor. The story began when Apple noticed that the
design and features of Galaxy products bore many similarities to the iPhone.

The Start of the Conflict

In April 2011, Apple officially filed a lawsuit against Samsung in the U.S. District Court
for Northern California, accusing Samsung of violating design and feature copyrights of
the iPhone and iPad. This marked the beginning of a prolonged legal battle, with both
sides determined to protect their interests.

Counterclaims and Lawsuits

Just a month later, Samsung retaliated by filing a countersuit against Apple, accusing it of
infringing on patents related to wireless technology. The legal battle escalated into an
intense competition, with both companies presenting strong arguments to justify their
positions.

Negotiations and Court Hearings

Throughout 2012, U.S. courts issued preliminary rulings affirming some of Apple's
claims and requiring Samsung to pay damages. However, subsequent trials failed to
resolve the issues definitively, and both companies engaged in negotiations to seek a
peaceful solution. Unfortunately, these efforts did not yield immediate results.
After many years of legal disputes since 2011, Apple and Samsung both realized that
continuing to litigate would not bring long-term benefits to either party. They decided to
shift their focus towards seeking reconciliation and cooperation. Around 2014, Apple and
Samsung began engaging in negotiations to explore opportunities for collaboration and
resolve outstanding disputes. During this process, the negotiations took place in an open
atmosphere, with a desire to find common interests rather than entering into legal
confrontations. Both sides maintained a positive attitude and were willing to listen and
exchange perspectives with each other.

Agreements and Cooperation

From 2014 to 2015, after numerous trials and rulings, Apple and Samsung recognized
that ongoing legal disputes were not beneficial in the long run. They began negotiating
about potential collaboration in certain areas, such as component manufacturing. By
2016, both companies reached several agreements regarding the use of each other's
technologies, although some lawsuits continued.

Resolution of the Conflict

By 2018, the legal battle between Apple and Samsung had gradually subsided. Both
companies shifted their focus towards developing new products and improving
technology, rather than continuing to litigate against each other. They transitioned from
fierce competition to strategic collaboration.

Long-term Consequences
After 2018, Apple and Samsung continued to collaborate in areas like providing OLED
displays for iPhones. This conflict left valuable lessons about how technology companies
can both compete and cooperate to foster growth.
 4. Analyze 3 aspects (benefit, right, strength) (2 pillars: side A, side B) batna if
there is

APPLE SAMSUNG

BENEFIT - Maintain exclusivity for its - Maintain the right to use technology
innovative products. freely.
- Create a competitive edge, - Maintain a relationship with Apple, a
protect iPhone and iPad market major customer in the supply chain.
share. - Avoid serious financial losses due to
- Limit material patent adverse penalties.
infringement

RIGHT - Claims that Samsung has - Oppose the idea that Apple owns
copied its design. popular designs in the market.
- Want to set a precedent for - Argue that it is unreasonable to use
protecting intellectual property patents to restrict competition.
rights in the field of
technology.

POWER - Strong brand with high - Playing an important role in the supply
loyalty from users. chain, providing critical components
- Abundant financial resources such as screens and chips.
to pursue long-term litigation. - Occupying a large market share in the
- There is the possibility of global smartphone market. - Sufficient
changing other suppliers if financial capacity to fight Apple in
necessary, putting pressure on protracted lawsuits.
Samsung.
Summary: The 2011 dispute was not only a legal issue but also a strategic confrontation
between the two tech giants. Despite fierce competition in the mobile market, both Apple
and Samsung still have to keep their interdependence in the supply chain. It is this
binding that creates a balance in negotiations, helping both to protect their interests and
avoid causing too much loss to business activities.

5. Strategic + tactical analysis of both sides in the negotiation

The dialogue between Samsung and Apple in 2011 was one of the most prominent events
in technology history. This tense confrontation revolves around reports of Samsung
copying the design of the iPhone and iPad.
Apple's strategy
• Focus on intellectual property protection: Apple has built an image of a company that
always puts creativity first. They see protecting their unique designs as an important part
of maintaining a leadership position in the market.
• Create legal pressure: Apple has used the legal system to put pressure on Samsung.
Lawsuits were initiated in many countries to ban the sale of pirated products and seek
damages.
• Creating public opinion: Apple took advantage of the media to create a media war, to
tarnish Samsung's image and convince the public that Samsung is a plagiarist.
• Enhance brand value: Apple always emphasizes unique user experience and premium
product quality. Protecting the design is seen as a way to maintain this premium brand
value.
Samsung's strategy
• Attacking Apple's weaknesses: Samsung tried to prove that its designs were unique and
did not violate any of Apple's patents.
• Emphasize healthy competition: Samsung believes that the competition between the two
companies will promote the development of the mobile industry and bring benefits to
consumers.
• Create a competitive ecosystem: Samsung has built a strong Android ecosystem to
compete directly with Apple's iOS.
• Focus on innovation: Samsung has continuously invested in research and development
to create new, unique products and meet consumer needs.

6. If you are a mediator, what do you propose to achieve a win-win solution?

(Win - Win solution)

If I were the mediator in the dispute between Apple and Samsung in 2011, I would
propose a solution that focuses on protecting intellectual property rights, encouraging
innovation, and creating a level playing field for both parties.

1. Establish a clear standard of innovation: Both companies should work together

to establish a mechanism to evaluate and define more clearly what is considered
"unique innovation" and what is "innovation based on existing technology." This
will help to minimize future disputes and create a common standard for the
industry
o Create a panel of experts: Establish a panel of legal, design, engineering,
and independent experts to develop a specific set of standards for design,
user interface, and software features that are considered unique innovations
and should be protected.
o For example, this council may decide that the use of a certain app icon grid
on the home screen is not a unique creation, but the use of a special swipe
gesture to perform a specific function can be protected.
2. Collaborate on technology development: Instead of just focusing on litigation,
the two should work together to develop new technologies, share patents, and
create breakthrough products together. This cooperation not only benefits both
companies, but also promotes the development of the entire mobile industry
 o Patent sharing: Together, the two companies create a common patent
pool, allowing other companies in the industry to access and use it for a
reasonable fee.
o For example, Apple and Samsung can jointly develop new standards for
displays, batteries, or connectivity technologies, and then share these
inventions with other manufacturers to drive industry-wide growth.
o Develop joint research projects: Collaborate on research projects on new
technologies such as artificial intelligence, virtual reality, or new materials
for mobile devices.

Compensation Fund: A general compensation fund can be established to support

smaller companies and independent developers who may be affected by major legal
battles. This will help protect diversity and innovation in the industry.

o Establish a fund: Establish a compensation fund funded by both Apple

and Samsung to support smaller companies or independent developers
affected by litigation.
o For example, if a startup is forced to cease business due to infringement of
Apple or Samsung patents, they may receive financial assistance from this
fund to continue developing products or divert to other projects.

Supervisory Board: An independent board may be established to oversee the

implementation of agreements and resolve potential disputes in the future. This panel will
be composed of experts in the legal, technology and business fields.

o Establishment of the Council: Establish an independent council of experts

from different fields to oversee the implementation of agreements, resolve
newly arising disputes, and propose improvement measures.
o For example, if a new company accuses both Apple and Samsung of
infringing on its patents, the board will be responsible for investigating and
making an impartial decision.
This win-win solution not only helps resolve the current dispute, but also creates a
healthier and more sustainable competitive environment for both Apple and Samsung.
Both companies can continue to innovate and grow without worrying too much about
protracted litigation. At the same time, consumers will also benefit from this healthy
competition with higher quality and more diverse products. This solution emphasizes
cooperation, sharing, and mutual respect. It not only focuses on discerning right from
wrong, but also looks towards a future where both parties benefit and the industry as a
whole is also developed.

7. Conclusion
The conflict between Apple and Samsung represents more than just a legal case; it
signifies a contest over branding, technology, and intellectual property in the mobile
world. While both parties have reached some agreements and settlements over the years,
this lawsuit remains a pivotal chapter in the history of technology.