Is Mediation the Solution to Epic IP Battle between Apple and Samsung?

After several rounds in the courtroom, Apple Inc. and Samsung Electronics Co. are turning to mediation to resolve their ongoing intellectual property (IP) dispute.

As we have previously discussed on the Scarinci Hollenbeck Business Law Blog, the two tech giants are among the most active in the so-called software patent wars. In 2012, a California jury concluded that Samsung infringed Apple’s patents for its iPhone and iPad devices and awarded a record $1.05 billion in damages. However, U.S. District Judge Lucy Koh later ruled that jurors had erred in calculating some of the damages. She ordered a retrial, which is currently scheduled for March.

In advance of the trial, Apple CEO Tim Cook and Samsung CEO Oh-Hyun Kwon have agreed to sit down with a mediator to address at least some of the issues in dispute. The mediation is the result of a court order requiring the two sides to hold settlement talks prior to trial.

In mediation, a neutral third party is called on to help negotiate the differences in the parties’ positions in order to lead to settlement of all or some of the issues in dispute. The job of the mediator is to help the parties find common ground rather than make any binding decision regarding the dispute.

Mediation offers several advantages over litigation. Like other alternative dispute mechanisms, it is less costly and time-consuming than going to trial. Mediation is also fairly informal and therefore allows the mediator to propose creative solutions. Unlike turning a case over to a jury, mediation also allows the parties to maintain control over the ultimate resolution and maintains the confidentiality of the proceedings.

While mediation is not binding upon the parties, statistics show that about 80 percent of claims mediated in the federal courts ultimately settle. However, in this case, it is unclear if bitter rivals Apple and Samsung will be able to break the deadlock in their high-profile dispute.

If you have any questions about this case or would like to discuss how mediation may benefit your intellectual property dispute, please contact me, Robert Levy, or the Scarinci Hollenbeck attorney with whom you work.