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In: Finance

Samsung had a strong incentive to move beyond their dispute and build on their ongoing partnership....

Samsung had a strong incentive to move beyond their dispute and build on their ongoing partnership. why?

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Expert Solution

It was in April 2011, Apple filed a lawsuit against Samsung for copying the appearance of the iPhone when Samsung created its Galaxy line of phones. Then Samsung countersued Apple claiming that Apple has not paid royalties for using wireless transmission technology of Samsung.

But both the companies wanted to compromise and to avoid going to court. Then the CEOs met for mediation talk. They had a strong incentive to move beyond their dispute and to build partnership because they considered the fact that Samsung is one of Apple’s biggest suppliers. Their mediated talks ended in late May refusing both the companies to back down from their arguments. The suit later reached to trial.


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