Samsung mobile chief rules out patent pact with Apple

Samsung Electronics’ mobile chief Shin Jong-kyun on Wednesday ruled out the possibility that it will sign a licensing pact involving its global patent litigation with its rival Apple Inc.

Shin said the company has “completely no intention” of participating in negotiations with Apple when asked about its future road map involving the global patent battles staged in nine different countries.

“I’m not sure if it’s true that HTC has agreed to pay up to 300 billion won ($276 million) per year (in royalties to Apple), but we completely have no intention to do so,” he told reporters at its office in southern Seoul.

Shin’s remarks were made after it was reported earlier this week that Apple and HTC announced a surprise settlement deal to end their global patent disputes.

The two signed a broad 10-year licensing agreement which includes current and future patents registered by both firms. The terms of the deal were not disclosed, but Sterne Agee analyst Shaw Wu said that HTC has agreed to pay $6-$8 in a net licensing fee per smartphone. Wu also said that this pact will trigger annual revenue of $180-$280 million for Apple next year since HTC is expected to ship between 30 million and 35 million smartphones in 2013.

Apple and HTC’s patent litigation started in March 2010 following the U.S. tech giant’s filing of lawsuits with the International Trade Commission and the U.S. District Court as Apple claimed HTC’s patents infringed on its iOS platform.

“Some analysts believe this case could serve as a blueprint for the Samsung-Apple patent battle. However, Shin’s firm stance on the matter shows that reaching an agreement between the two parties will not be an easy process, or one that will be seen anytime soon,” said an industry source.

By Cho Ji-hyun (sharon@heraldcorp.com)