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Apple and Google Consider Arbitration for Worldwide Patent Disputes

Posted By Dominick Severance, Jan 22, 2013

Both Apple and Google are embroiled in litigation spanning the globe regarding patents for their mobile devices. Although Apple has generally sued Google’s device manufacturers instead of Google itself, Apple’s litigation has definitely been aimed at Google’s Android operating system. Litigation costs in each of these cases has been astronomical. For example, the law firm of Morrison & Foerster charged Apple $116,000 to file just one motion to compel in the recent Apple v. Samsung case - in that same case, the law firm of Quinn Emanuel charged Samsung over $258,000 to prepare just three motions!

Besides costs, managing complex litigation throughout the world and numerous jurisdictions is very time consuming and exhausting. In a recent report by Bloomberg, Apple and Google are in talks to enter into binding arbitration that will globally settle the disputes between the two companies. Per Google General Counsel Kent Walker, Google would prefer a global, rather than piecemeal, resolution to all the patent disputes.

Generally, big companies prefer arbitration because the issue is done and over with - usually, neither party can appeal the arbitrator’s decision. For Apple and Google, even though both companies can afford the litigation, universal and final settlement of claims may actually be more beneficial in the long run as it frees up time, energy, and money that can be used elsewhere. Apple, however, has had a relentless and exhaustive litigation strategy at the behest of Apple’s former CEO, Steve Jobs. Jobs stated that he would wage “thermonuclear war” against Google for the alleged infringement of Apple’s intellectual property. Now that Jobs has passed and Steve Cook is CEO, it will be interesting to see whether Apple pursues arbitration as opposed to remaining in the courts.

Source (Bloomberg): http://mobile.bloomberg.com/news/2012-11-16/apple-google-consider-arbitration-over-standard-patents-1-.html

Source (Huffington Post): http://www.huffingtonpost.com/2011/10/20/steve-jobs-google-grand-theft_n_1023111.html