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Samsung Accused By Apple Of Unfair Demands Over Its 3G Patents

Before the week ended last week, Apple managed one last dig against Samsung when it claimed that the South Korean company abused its “monopoly power” gained through purchases of wireless patents and asking way too much money for royalties from devices of Apple.

The move of Apple was one of its attempts as it race against Samsung in their race to persuade the jury, which is set to deliberate later this week, in the last day of testimony. Judge Lucy Kho gave each side the normal 25-hour allotment to present their witnesses.

Apple previously accused Samsung of violating its standards essential patents as it claimed that Samsung did not tell authorities it owned patents of 3GPP before it became the standard.

Apple reportedly tapped the European standards former chairman of ETSI Michael Walker to testify against Samsung.

In his testimony, Walker said that Samsung did not tell the body in time that the company owns the patents for the 3GPP standards, which Samsung said Apple violated. Samsung rebutted by saying that ETSI did not find the failure to disclose the patent ownership because the body did not have any problem with it on that score. Samsung also claimed that it was not obligated to tell ETSI about it because it was confidential.

Apple then tried to convince the jury further that its rival overstated its royalty demands for the 3G standards essential patents (SEP). Former Texas Instruments lawyer Richard Donaldson argued that its client, Apple, found the demands of Samsung unfair and unreasonable, despite the fact that they’re supposed to be pledged to industry standards. In 2005, Samsung lobbied for changes to be made for 3GPP Standard and it agreed to disclose any related intellectual property rights before changes were adopted. Patents being used in an industry across the board are supposed to be licensed to competitors on “fair, reasonable and non-discriminatory” (FRAND) terms.

Donaldson added that if all owners of SEP will demand licensing fees, the cost would equal to half the price of a unit of iPhone.

The presiding judge suggested to both sides to consider settlement talks last week but there have been no rumors about any negotiations yet. It looks as if both camps are contented to leave the final say to the jury this week.

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