Samsung heir apparent Lee mentions close ties  in talks with Tim Cook


HONG KONG/SEOUL ― Samsung Electronics’ top executives sent mixed signals on Wednesday over its patent battle with Apple Inc. amid speculation about a possible new attack from the U.S. tech leader aiming to undercut the allure of Samsung’s new Android smartphone.

Samsung’s mobile chief Shin Jong-kyun, sounded ready for a fight when he spoke in Hong Kong, promoting the company’s new Android-based smartphone Galaxy Nexus, a jointly developed gadget with Google that Samsung hopes will deal a fresh blow to Apple’s revamped iPhone 4S.

“I can’t say the Galaxy Nexus will be 100 percent free from the patent debate,” he told reporters at a press conference on Wednesday, suggesting that Apple’s legal team might take aim at the Galaxy Nexus as well.

“We’ll have to see what happens later,” Shin said.

However, a dovish gesture came from another high-profile Samsung executive, Lee Jae-yong, who returned to Seoul early Wednesday after attending a memorial service for Apple’s late co-founder Steve Jobs, and meeting with Apple’s current chief Tim Cook.

“For the 2013-2014 period, we discussed how best to supply even better parts,” he said, adding that during the more than two-hour meeting, the businessmen touched on past challenges and how to promote good relations in the future.

Lee, the only son of Samsung Electronics chairman Lee Kun-hee and heir apparent to the country’s biggest chaebol group, strongly hinted that Samsung and Apple would maintain close ties, despite rumors that the U.S.-based company may switch supplier for its parts to firms in Japan or Taiwan once its existing contract with Samsung expires in 2012.

With mixed messages sent in Hong Kong and Seoul, Samsung received a much-anticipated ruling from California in its patent fight with Apple.

On Tuesday, a Californian court ruled in favor of Samsung, dismissing Apple’s claims that Samsung misrepresented its intent to license certain patents on fair terms. Samsung’s request to throw out some of Apple’s antitrust claims was granted at the court in San Jose.

The ball is now in Apple’s court, as a legal challenge against Samsung’s Galaxy Nexus, the first smartphone that runs on Google’s newest Android mobile platform called “Ice Cream Sandwich” might put a new twist on the patent battle.

Apple reported a rare miss in quarterly results on the same day after sales of its flagship iPhone fell short of expectations ― selling 17.07 million units, down from the estimate of 20 million units predicted by analysts. The company’s shares dived over 5 percent following the announcement.

Although the handset vendors of the Google’s Android mobile operating system are latecomers in the smartphone industry, the free-to-use platform has been adopted by numerous mobile phone makers such as Samsung Electronics, HTC, LG Electronics and Sony Ericsson ― with Google continuing to score more partners.

As a result, the world’s most well-known smartphone maker Apple ― which still has the gold standard for smartphones ― is bound to feel outnumbered by the Android alliance, added to the fact that Google recently acquired Motorola Mobility.

Some industry insiders say the Apple vs. Google patent battle has already lit on for Apple is currently in litigation with three major Android device manufacturers ― Samsung, HTC and Motorola.

On Monday, Taiwan’s HTC lost a patent infringement complaint against Apple in a preliminary ruling at the International Trade Commission. The ITC administrative law judge said Apple did not violate any HTC patents and the final commission ruling will be given later in February.

Apple has claimed victory over Samsung involving patents in courts in Germany, the Netherlands and Australia, banning the sales of the Seoul-based company’s flagship smartphones and tablet PCs. The patent battle between the two companies has so far spread across nine countries, and involves more than 20 cases.

Shin, however, acknowledged that Samsung sees no gains involving the patent challenges staged between his company and its major customer Apple.
“What we’re losing is our pride in the company’s brand,” said Shin. “(But) I believe it’s now the beginning and we’re planning to move more aggressively as they have done.”

He also said that Samsung will recruit more people in its legal team and get together all of its patents ― including those involving multimedia as well as telecommunication standard patents ― to go against the U.S. giant.

“We will not just be on the defensive side, but stage all-out efforts,” he said. “We need to protect our own market.”

He said Samsung will go ahead with its appeal at the court in Germany as it recently filed for another appeal in Australia.

“Samsung is not a company with a low level of patent rights. We actually have a considerable amount of patents,” he said.

But it has yet to be finalized whether the company was preparing to file a preliminary injunction against Apple involving the iPhone 4S in Korea, according to Shin.

“We can’t keep losing. It seems to be only the beginning and it does not look like it’s going to end anytime soon,” he said. “It’s a shame on some sides but we just need to be more ready on looking into our own patents and on the legal aspects.”

By Yang Sung-jin and Cho Ji-hyun
(insight@heraldcorp.com) (sharon@heraldcorp.com)