In a joint statement, Apple and Samsung have announced that they are dropping all filed patent cases against each other in courts outside the United States.

The agreement between the two companies, however, does not include any licensing arrangements, cases of which will still be pursued by both companies in U.S. courts.

The decision of Apple and Samsung eases the tension between the two smartphone manufacturers, as cases filed in eight countries have been withdrawn.

The countries where the lawsuits will be dropped are South Korea, Australia, Germany, Japan, the United Kingdom, Italy, France, and Netherlands.

As the smartphone industry becomes more competitive, with the two companies jockeying for position as the world leader, Apple and Samsung have taken the battle to the courtroom.

Apple filed its first lawsuit against Samsung in the United States in 2011 for copyright infringement of the iPhone. Samsung countered by filing a lawsuit against Apple for copyright infringement in South Korea, Australia, Germany, Japan, the United Kingdom, Italy, France, and Netherlands. Apple then filed countersuits in five of the countries.

In the lawsuits, Apple alleges that Samsung is copying the designs of the iPhone, while Samsung is accusing Apple of using components of its wireless transmission technology with no consent from Samsung.

While the lawsuits outside the United States have been dropped, the major legal battle between the two companies continue within the country, where Apple has received two victories against Samsung with rulings that the company copied the iPhone, winning damages over $1 billion.

The latest trial between the two companies in the United States awarded Apple with damages of $119.6 million. Apple, which was initially seeking $2.191 billion in damages, is seeking for a re-trial in an attempt to be awarded more compensation.

Apple has not received any compensation yet from the court cases that it won against Samsung. In addition, the company has not yet been granted what it really is looking for, which is a permanent ban on several Samsung smartphones and tablet computers.

"The U.S. litigation is the most important. There is the most at stake. Apple in particular is hesitant to let it go," said Rutgers University law professor and patent-law expert Michael Carrier. "I think Apple is coming to the realization step by step that this litigation is not worth it." 

While Apple and Samsung are spending time and resources in their respective legal battles, the smartphone industry is slowly changing, with Chinese smartphone companies such as Xiaomi, Lenovo and Huawei gaining better footholds in the industry through offering smartphones that have great specs and loaded with features but at a lower price.

"The whole industry paradigm is changing," said IBK Securities Co. analyst Lee Seung Woo. "Apple and Samsung have no time to waste and it's time to get back to work."