Could Apple, Samsung be headed toward a settlement?

USA TODAY columnist Mark Veverka. (Photo: Martin E. Klimek, USA TODAY)

ASPEN, Colo. - Despite their public sniping, it appears Apple and Samsung Electronics are quietly working toward a wide-ranging settlement agreement that could remedy multitudes of patent disputes related to wireless device technology.

While there is yet evidence that a deal is imminent, there are definite signs the two sides will eventually reach an agreement. It is in their mutual interests to do so. So, it comes as little surprise that the two sides are trying to hammer out a deal.

As suggested in my inaugural column for this newspaper last January, the two tech giants would use the courts and trade rules to pressure each other to the negotiating table where they would ultimately find middle ground on intellectual property differences. We likened the Samsung-Apple spat to a patent battle between two other warring industrial giants of a previous generation: Procter & Gamble and Kimberly-Clark. The two consumer product behemoths spent several years late last century suing each other silly before reaching a settlement on diaper patents used in Pampers and Huggies, respectively.

Whether the patents involve elastic bands or electronic wristbands, these things generally get resolved for the betterment of both parties. In the case of Apple and Samsung, a deal will ultimately save them hundreds of millions and, more important, allow them to concentrate on protecting their respective leads in global smartphone sales against HTC, Nokia, Blackberry and China's Huawei. Documents filed with the U.S. International Trade Commission indicate Apple and Samsung have been meeting behind the scenes in face-to-face meetings, including talks held in Seoul, South Korea, according the The Wall Street Journal.

Presuming Apple and Samsung eventually strike a deal, why will it take so long and what might a settlement look like? "Expect this to be a multidimensional settlement agreement, with the goal of establishing world peace, now and in the future," says patent attorney Alan Fisch, managing partner of Washington, D.C.-based Fisch Hoffman Sigler LLP.

Naturally, the two companies are duking it out in Korean and American courts, but several lawsuits have been filed in Germany, Japan and places in between. Don't expect resolution of the issues in the US without remedies most everywhere else, Fisch explains. What's more, a settlement is likely to span multiple lawsuits, products, countries -- and may even include business components, he added.

Since the companies started slapping each other with lawsuits two years ago, products have come and gone while new gadgets are in the works. Thus, the two companies are likely to strike cross-licensing deals that could include products that have not yet been introduced or even created. Neither company is going to want to go through this expensive, draining and contentious ordeal any time soon, so expect any cross licenses between the two to cover at least five years.

This patent war has been among the first of its kind to go global, reflecting the new reality of the International marketplace for technology. And while consumer demand is shattering distribution barriers, actual national borders remain. The patent and tax laws of almost every country come in to play, which is good news for lawyers and accountants. While the patent systems of developed nations have become more sophisticated over the past couple of decades, differences remain that require involvement by local attorneys. But the same can't be said for tax systems when it comes to patents, which remain complex and filled with potholes.

To be sure, adding patent and tax lawyers from multiple foreign countries to the mix isn't a recipe for rapid resolution. Yet despite the laborious and contentious process, Apple and Samsung really need each other. They are corporate "frenemies" in the truest sense. Despite their legal battles, Samsung has remained one of Apple's largest suppliers of chips, and Apple is still one of Samsung's largest customers. It is possible that either or both sides could make concessions in their supplier agreements in lieu of cash in any settlement.

Patent settlements usually include confidentiality agreements to protect company secrets, and an Apple-Samsung pact is sure to include that. "There is no obligation that the agreement settling a patent infringement case be filed with the court," Fisch says.

Although the dollar amounts in this case are huge, both companies may not have to disclose the terms if the lawyers and accountants decide that the settlement doesn't have material impact on either company, which is possible because the companies boast hundreds of billions of dollars in revenues.

One thing is certain; expect a settlement to be as thick as a phone book, which ironically is an acronym thanks to the digital exploits of both companies.

Mark Veverka is a technology columnist with more than 25 years of financial journalism experience. He was previously a columnist at Barron's, The Wall Street Journal and the San Francisco Chronicle.