For two days in late May 2012, Apple CEO Tim Cook and Samsung CEO Gee-Sung Choi met with a federal judge in the U.S. District Court for the Northern District of California, attempting to reach a settlement in a high-profile patent dispute—one that quickly became a sobering example of negotiation in business.
The conflict had begun more than a year earlier. In April 2011, Apple sued Samsung, accusing the Korean electronics giant of copying the “look and feel” of the iPhone in developing its Galaxy line of smartphones. Samsung responded with its own lawsuit, alleging Apple failed to pay royalties for wireless transmission technologies Samsung had developed.
From there, the legal conflict expanded rapidly. The number of patents under dispute multiplied, and lawsuits spread across courts in several countries. Each company repeatedly accused the other of copying smartphone and tablet designs and functions, turning what began as a product dispute into a sprawling global legal battle.
At the California court’s suggestion, the companies showed some willingness to compromise, agreeing to cut the number of disputed patents in half. Yet even as mediation discussions were underway, tensions remained high. Apple filed a motion asking the court to block U.S. sales of Samsung’s Galaxy Tab 10.1, arguing that the device closely mirrored the iPad’s design.
Both companies publicly claimed they hoped to avoid prolonged litigation. They also had a strong business incentive to do so: Samsung was one of Apple’s key component suppliers, meaning their rivalry coexisted with deep commercial interdependence.
Still, despite the court-encouraged mediation effort, the two-day CEO meeting ended in impasse. Neither side was willing to compromise enough to reach settlement. The dispute continued in court, eventually producing multiple trials and appeals, with Apple later securing hundreds of millions of dollars in damages after years of litigation.
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Mediation Between Business Negotiators—and Why It Sometimes Fails
This case highlights a key lesson about mediation in business disputes: mediation is far less likely to succeed when parties participate reluctantly rather than genuinely seeking resolution.
By the time mediation occurred, both companies had already invested enormous time, money, and public reputation in fighting the dispute. That investment can create a psychological trap: negotiators feel they have gone too far to back down, even when settlement might be economically wiser.
As disputes drag on, positions often harden. Frustration and competition replace collaboration, making compromise more difficult. Each legal win or loss raises the emotional stakes, reducing flexibility at the negotiating table.
The practical lesson for business leaders is straightforward:
Address disputes early, before positions become entrenched and litigation escalates costs.
Early negotiation or mediation can preserve business relationships, reduce expenses, and allow companies to refocus on innovation and growth rather than courtroom battles.
The Apple–Samsung case shows what happens when mediation comes late—after conflict has already hardened.
What lessons do you take from this example of negotiation in business? And where do you see opportunities for companies to resolve disputes before they escalate?
Claim your FREE copy: Business Negotiation Strategies: How to Negotiate Better Business Deals
Discover step-by-step techniques for avoiding common business negotiation pitfalls when you download a copy of the FREE special report, Business Negotiation Strategies: How to Negotiate Better Business Deals, from the Program on Negotiation at Harvard Law School.
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Originally published in 2013.
Early resolution is sometimes best. But it is a myth that early resolution always leads to the best outcomes.