Apple and Samsung mediation talks end: No deal. No surprise.
FORTUNE — Apple AAPL CEO Tim Cook drove up from Cupertino. Samsung CEO Choi Gee-sung and Shin Jong-kyun, head of the firm’s mobile division, flew in from Seoul. They met, as ordered by a federal judge in the Northern District of California, for two days in a San Francisco courthouse.
The two sides were supposed to try to hammer out an agreement in their long-running patent dispute so that a costly trial could be avoided.
I didn’t see any news in U.S. press about what happened, but Wednesday’s Korea Times , citing an unnamed Samsung official, reports that the two sides could find “no clear agreement.”
This is not a surprise, given the very different patent portfolios the two companies brought to the table.
Many of the patents Samsung claims Apple has infringed are encumbered by so-called FRAND agreements, which require that the patent-holder negotiate royalties on terms that are “fair, reasonable and non-discriminatory.”
Apple, by contrast, is under no such obligation. And given that Samsung, using Google’s GOOG iPhone-like operating system, has become the world’s largest manufacturer of smartphones, Apple has little incentive to compromise. See Why Samsung must negotiate. Why Apple won’t settle.