Policy —

Apple-HTC settlement unsealed: No “cloned products,” no helping trolls

Samsung may use the deal to argue against an injunction at today's key hearing.

Apple-HTC settlement unsealed: No “cloned products,” no helping trolls

In advance of today's Apple v. Samsung hearing, Samsung filed a key document it fought hard to acquire—Apple's recent patent settlement with HTC.

The 143-page settlement [PDF] is heavily redacted, and no financial terms are revealed. Still, certain parts of the document are revelatory. The document outlines an arbitration process that Apple can initiate if it believes HTC has created a "Cloned Product" that apes Apple's too closely. It gives specific examples of similarities that would be acceptable and others that would be verboten. "Pinch to zoom" is OK; "slide to unlock" is OK, but only if it looks different. As the agreement lays out (p. 33):

A specific graphical slider animation used in an APPLE Mobile Communication Device at the bottom of a display screen to implement a 'slide to unlock' feature could qualify as a Distinctive Apple User Experience; however a different animation (for example a bubble slider) or an animation at another location (for example along the side of a screen) would not be considered substantially similar and would not constitute a Cloned Feature. Functionality and related methods (for example, "pinch to zoom" functionality) will not be considered a Distinctive Apple User Experience.

Bear in mind, that doesn't mean Apple is saying it can't sue over features like "pinch to zoom." These are the terms for a company that has agreed to pay Apple for its patents, not an unlicensed competitor.

Other interesting particulars in the agreement:

  • There's a specific "no helping the patent trolls" provision (pages 13-14 of the settlement). Increasingly, corporations are taking the "if you can't beat 'em, join 'em" attitude toward patent trolls, giving them patents or other types of assistance and then letting them loose on competitors. This deal specifically bars either party from taking any action to "materially assist in the assertion of Patents in a specific suit, action, or proceeding against the other Party's Covered Products... by a patent holding company, other patent enforcement entity, or a Third Party in which the first Party has an ownership interest." However, "mere membership" in a patent defense group like Allied Security Trust or RPX, or "mere participation" in "patent investment funds such as Intellectual Ventures" won't count.
  • Certain patents aren't included in this deal. Apple doesn't license any of its design patents, and HTC reserves the rights to nine patents it acquired from Google (they're listed on page 4).
  • A full list of settled lawsuits is listed in exhibit F-1 (page 39). They include 12 US legal disputes—seven federal court cases, five International Trade Commission cases, and two ITC cases on appeal; 23 German lawsuits; four lawsuits in the UK; five US cases between Apple and HTC-owned S3 Graphics; and six German S3 Graphics cases. That's 50 cases in all.
  • The parties agreed to total confidentiality about all aspects of the agreement. The text of the press release disclosing the settlement, along with authorized quotes from the two companies' CEOs, is actually included within the settlement.

Samsung clearly intends to use this settlement as evidence. The most important court proceeding since the trial is coming up this afternoon. Presumably, Samsung will use the HTC-Apple deal to argue that Apple should not receive an injunction. If Apple was fine licensing these patents to HTC for monetary compensation, the reasoning goes, it should be satisfied with money from Samsung. Apple, meanwhile, will argue for enhanced damages above and beyond the $1.05 billion verdict it won following the August trial. The company will seek injunctions barring Samsung products from market.

Ars will be covering the hearing this afternoon from federal court in San Jose.

Channel Ars Technica