* Apple says Samsung demands higher royalty than others paid
* Samsung says royalty demands in line with industry norms
* U.S. judge rules Samsung wrongly let staff delete emails
By Dan Levine and Poornima Gupta
SAN FRANCISCO, July 25 Apple Inc said
Samsung Electronics Co Ltd is demanding from the
iPhone maker a far higher patent royalty than Apple pays to
other companies, at a rate the South Korean company has never
sought from any other licensee.
The information was contained in portions of an Apple legal
brief freshly unsealed in U.S. court on Wednesday, a nd provides
more detail about each side's negotiating position in the run-up
to a high stakes trial set to begin next week.
In a separate filing, Samsung contended that its royalty
demands are consistent with industry norms.
Also on Wednesday, a U.S. magistrate in San Jose,
California, ruled that Samsung wrongly let employees delete
emails that could have helped Apple pursue its $2.53 billion
lawsuit over disputed patents. The magistrate, Judge Paul
Grewal, also said that a jury may hold this matter against the
South Korean company.
"We intend to appeal Judge Grewal's decision to the trial
judge, and if necessary, to the Court of Appeals," Samsung said
in a statement. "Samsung remains committed to complying with all
information requests from the court."
A trial is scheduled to start in the San Jose federal court
Apple and Samsung, the world's largest consumer electronics
corporations, are waging legal war around the world, accusing
each other of patent violations as they vie for supremacy in a
fast-growing market for mobile devices.
One of the key issues in dispute between the companies is
how to value Samsung's standard essential patents. These are
patents which Samsung has agreed to license to competitors on
fair and reasonable terms, in exchange for having the technology
be adopted as an industry standard.
Some judges are reluctant to issue injunctions on such
Samsung is demanding a 2.4 percent rate on the "entire
selling price" of Apple's mobile products, Apple said in the
"Samsung's royalty demands are multiple times more than
Apple has paid any other patentees for licenses to their
declared-essential patent portfolios," Apple said.
The legal filings do not disclose the rate Apple pays to
other companies for standard essential patents. In a court
filing on Tuesday, Apple had said it should pay one-half of 1
cent per unit for each infringed standard essential patent.
However, Samsung said in a separate filing on Wednesday that
its offer "is consistent with the royalty rates other companies
charge" and that Apple never made a counter offer.
"Instead, it simply rejected Samsung's opening offer,
refused to negotiate further and to this day has not paid
Samsung a dime for Apple's use of Samsung's standards-essential
technology," Samsung said.
In his ruling, Judge Grewal said Samsung "acted with
conscious disregard of its obligations, or willfully", in
failing to disable the auto-delete feature of its in-house
"mySingle" email system by the time it should have known that
Apple would sue over patents for technology used in smartphones
"In effect, Samsung kept the shredder on," Grewal wrote.
"This plan fell woefully short of the mark."
Grewal ordered that a jury be instructed that it may presume
that it is more likely than not that Samsung destroyed evidence
favorable to Apple after its duty to preserve that evidence had
The case in U.S. District Court, Northern District of
California, is Apple Inc v. Samsung Electronics Co Ltd et al,