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Apple and Nokia Outraged That Samsung Lawyers Leaked Patent License Terms

An anonymous reader writes "U.S. courts have strict rules in place governing the treatment of confidential business information. The most sensitive information is labeled 'highly confidential — attorneys' eyes only', meaning that only a company's outside lawyers are allowed to see it. The Apple-Nokia patent settlement contract and deals Apple struck with others (Ericsson, Sharp, Philips) were such highly confidential business information. But a Samsung executive allegedly boasted in a patent licensing negotiation with Nokia a few months ago about knowing all the terms of the Apple-Nokia deal because the Korean company's lawyers had provided it to their client, against the rules. The United States District Court for the Northern District of California now wants to find out more before deciding on sanctions against Samsung and its law firm, Quinn Emanuel."

17 of 201 comments (clear)

  1. Where's the Samsung fanboys now? by Anonymous Coward · · Score: 2, Insightful

    I don't really care who wins the smart phone war, but it's pretty clear that Samsung is just as evil and corrupt as every other large corporation. Let the smack down begin.

    1. Re:Where's the Samsung fanboys now? by Anonymous Coward · · Score: 1, Insightful

      Just as evil by being told to bend over to the evil practices of Apple and knowing their terms?

      The privileged nature of those documents is precisely to allow parties like Apple to prey on others.

      Samsung may not be great, but their conduct has not been evil. Quinn Emanuel has been incompetent though (here and in the $1 billion dollar court verdict - they failed to disclose the existence and sale of the Sansung F700 until too late and could not rely on it as prior art.)

    2. Re:Where's the Samsung fanboys now? by Anonymous Coward · · Score: 5, Insightful

      Slashdot--the only place where everyone celebrates Manning and Snowden because "all information should be free", but condem teh evil corporations for leaking information about teh other evil corporations.

    3. Re: Where's the Samsung fanboys now? by Anonymous Coward · · Score: 5, Insightful

      Samsung are one of the least ethical companies around. Do your research. Bribery, corruption.. They should not be painted as saints, nor should their breach of law be overlooked.
      Fanboys of any denomination should be ignored.

    4. Re: Where's the Samsung fanboys now? by NatasRevol · · Score: 2, Insightful

      Samsung is a great example of unregulated capitalism.

      And it's not a good example.

      --
      There are two types of people in the world: Those who crave closure
    5. Re:Where's the Samsung fanboys now? by morgauxo · · Score: 4, Insightful

      I don't intend to defend Samsung as being good or evil (all I really know about them in terms of cellphones is that my Samsung Stratosphere really sucks!)

      But.. how does THIS event make them corrupt or evil? Because they broke a law? Because they broke the terms of someone else's contract? How is it morally wrong to know what someone else paid for the same 'product'? Isn't that how we all shop for anything which doesn't already have a price tag on it? Do you buy a house without looking at comps? If you go to an open market and you hear someone else haggling for one of something you want is it wrong to then offer the vendor the same deal? Or are you supposed to pretend you heard nothing and start the haggling from scratch?

      Why should our legal system be helping to enforce these secrecy clauses on contracts? How is it in the people's intrest to enforce them? All I can see it being used for is to jack up the price of goods as well as to keep new and smaller players out of markets.

    6. Re:Where's the Samsung fanboys now? by GumphMaster · · Score: 4, Insightful

      Makes perfect sense. If the details of the terms and conditions obtained from Apple by one party become known to other parties then Apple's ability to extract "better" terms from those other parties is diminished. All royalty seeking behaviour is cloaked in non-disclosure conditions to avoid the situation where the consumers could possibly bargain from a position of knowledge. This is not unique to patent licensing or Apple.

      --
      Patent litigation: A doctrine of Mutually Assured Destruction... in which everyone seems willing to push the button
    7. Re:Where's the Samsung fanboys now? by pla · · Score: 4, Insightful

      Slashdot--the only place where everyone celebrates Manning and Snowden because "all information should be free", but condem teh evil corporations for leaking information about teh other evil corporations.

      If Samsung had released this information out of some desire to force more open negotiations on the whole industry, I would applaud them.

      Instead, we have some weaselly Samsung exec bragging about cheating and getting away with it, solely for their own benefit in a specific contract negotiation.

      If you don't see the difference between that and Snowden or Manning... You just won't.

  2. because the company's LAWYERS had provided it by themushroom · · Score: 4, Insightful

    Not Samsung. The legal firm, the only ones privvy to the terms. Samsung itself only received the information, and stupidly let on knowing the information, but ultimately it's the legal firm that screwed up. Not Samsung.

    1. Re: because the company's LAWYERS had provided it by gstoddart · · Score: 5, Insightful

      but ultimately it's the legal firm that screwed up. Not Samsung

      If they accepted it with the knowledge that the judge had forbidden them from having it, and didn't tell anybody about it, then Samsung may well have crossed a line.

      The reason these things are intended to be kept only by the lawyers is so that neither party can gain an advantage by using information they're not legally allowed to have.

      To then take the information you're not legally allowed to have and then use that to gain leverage in a contract negotiation would be illegal. And it sounds like Samsung went into negotiations with someone and said "well, I know the terms of this deal with these people, and I want better".

      It's like SEC regulations on insider trading -- they're designed to keep people from profiting from information which isn't public. And there are cases where you could be told something as part of your job, and warned sternly that, for that issue you are now an insider and can't act on that. (Which is why many of us try very hard to not actually know the specifics of some of the systems we work with. It's just easier to keep some information at arms length.)

      Having that information may be illegal. Using the information may certainly be illegal. I'm not so sure that Samsung would be blameless here.

      --
      Lost at C:>. Found at C.
  3. Re:Sounds like lawyers playing lawyer by gstoddart · · Score: 5, Insightful

    Lawyers are supposed to work for their client, not hide information from them.

    Except, as TFS says, there are strict rules in place for some things.

    Sometimes, a lawyer is needed to be a buffer between you and something else you're not legally allowed to know. If this was the case, then the lawyer has either broken the law, or the standards of the Bar. Those are the kinds of things that can get you in trouble.

    Whether or not this is true is a different story, but if it is true, there could be some serious consequences.

    --
    Lost at C:>. Found at C.
  4. The real story by ysth · · Score: 5, Insightful

    Ignoring all the florian-spew and articles based on it, it seems an expert report was accidentally insufficiently redacted, and Samsung has not been fast enough in their investigation of where all the information went, so the magistrate judge is setting a deadline and ordering some depositions. Yawn.

  5. Re:Public knowledge by gstoddart · · Score: 4, Insightful

    All legal settlements should be public knowledge

    Except many settlements are essentially a contract between two private parties, enforced and accepted by the court. Often time, the settlement is made to allow anybody admitting any legal responsibility while making the issue go away -- like Michael Jackson't settlement with the kids he allegedly molested.

    There's lots of occasions where some of this stuff remains private information, because it's an agreement between the two entities, and spares them having it discussed in court and going on the record.

    This isn't something where the court has ruled, this is a case where the two parties agreed to stop the court proceedings and come up with a settlement. Since this can involve information which can affect stock prices and the like, it sometimes needs to be confidential.

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    Lost at C:>. Found at C.
  6. Re:PR Spin by Anonymous Coward · · Score: 2, Insightful

    Paid shill, but not paid shill by either Apple or Nokia. He gets paid by Oracle and MS.
    Anyway. Facts are facts. Even if they come from a shill.

  7. Re:Public knowledge by bws111 · · Score: 3, Insightful

    You do know that using the public institutions is not something the parties agree to, right? ONE party can take it to court, which according to you seems to me that the OTHER party loses all it's right to privacy. That is a pretty stupid idea.

    Finally, the reasons the secrets were not kept secret is because the court ordered them to be shared with the other party. I fail to see why any of my secrets should be made public just because I was ordered to provide them to another party that happened to file suit against me.

  8. Re:PR Spin by Dixie_Flatline · · Score: 4, Insightful

    The labour at Foxconn is actually fairly well paid. The suicide rate at the factory is LESS than in the general populace. Many workers were upset when their hours were reduced because they're only working there so they can make some money now then leave in a year or two. A lot of these people are sending money home to their farming families. There are lines outside the company of people wanting to work there. AND Apple is working to improve conditions and clamp down on working violations.

    Dodging taxes is legal, though of dubious ethics. But no other large company is playing by any different rules.

    Everyone is suing everyone. You think Samsung isn't also on the suing end of courtroom as well? In any case, the problem is the patent system that allows those patents in the first place; once the patent is actually accepted, Apple legally has the right to defend it. You're looking at this from the wrong side.

    That 'false advertising' claim is subjective. I've never had a problem at the genius bar.

    By definition, their stuff isn't overpriced because people buy it at that price. If it were overpriced, nobody would buy it. It's what the market will bear, and people are perfectly happy to pay it.

    I don't know who you're talking about on the compatible hardware front, exactly, but Apple isn't under any obligation to make software that allows OS X or iOS to run. That's not unethical, that's just a philosophical discussion. If you don't like it--and I'm sure you'll tell me you don't--don't run it.

  9. Re:PR Spin by Gravis+Zero · · Score: 1, Insightful

    Legal on all counts.

    "Show me where Apple have crossed the ethical lines ?"

    invest in either a dictionary or glasses.

    --
    Anons need not reply. Questions end with a question mark.