In Apple’s victory, smartphones may end up losing
A picture shows a Samsung phone (R) and an Apple Iphone 4. Apple won more than $1 billion in a massive US court victory over Samsung on August 24, 2012 in one of the biggest patent cases in decades – a verdict that could have huge market repercussions. — Photo by AFP
SAN JOSE: A jury’s conclusion that Samsung stole the innovative technology used by Apple to create its revolutionary iPhone and iPad could mean fewer smartphone options for consumers to choose from, analysts said.
Apple’s one-billion-dollar legal victory sends a warning to other companies manufacturing similar devices, the biggest marketplace threat to Apple.
A federal jury’s found Friday that Seoul-based Samsung Electronic Co. stole Apple’s technology to make and market smartphones using Google’s Android software.
“Some of these device makers might end up saying, ‘We love Android, but we really don’t want to fight with Apple anymore,”’ said Christopher Marlett, CEO of MDB Capital Group, an investment bank specialising in intellectual property.
“I think it may ultimately come down to Google having to indemnify these guys, if it wants them to continue using Android.”
That’s if the verdict stands. Samsung, the global leader among smartphone makers, vowed to fight. Its lawyers told the judge it intended to ask her to toss out the verdict.
“This decision should not be allowed to stand because it would discourage innovation and limit the rights of consumers to make choices for themselves,” Samsung lead lawyer John Quinn said. He argued that the judge or an appeals court should overturn the verdict.
Apple lawyers plan to formally demand Samsung pull its most popular cellphones and computer tablets from the US market. They also can ask the judge to triple the damages from $1.05 billion to $3 billion.
US District Judge Lucy Koh will decide those issues, along with Samsung’s demand she overturn the jury’s verdict, in several weeks. Quinn said Samsung would appeal if the judge refuses to toss out the decision.
Apple Inc. filed its patent infringement lawsuit in April 2011 and engaged the country’s highest-paid patent lawyers to demand $2.5 billion from its top smartphone competitor.
Samsung Electronics Co. fired back with its own lawsuit seeking $399 million.
The jury on Friday rejected all Samsung’s claims against Apple, but also decided against some of Apple’s claims involving the two dozen Samsung devices at issue.
It found that several Samsung products illegally used such Apple creations as the “bounce-back” feature when a user scrolls to an end image, and the ability to zoom text with a tap of a finger.
The US case was the latest skirmish in a global legal battle between the two tech giants. Its outcome is likely to have ripple effects in the smartphone market. Other device makers relying on Android, the mobile operating system that Google Inc. has given for free to Samsung and other phone makers, may be more reluctant to use the software and risk getting dragged into court.
During closing arguments, Apple attorney Harold McElhinny claimed Samsung had a “crisis of design” after the 2007 launch of the iPhone, and executives were determined to cash in illegally on the success of the revolutionary device.
Samsung’s lawyers countered that it was legally giving consumers what they want: smartphones with big screens. They said Samsung didn’t violate Apple’s patents and alleged innovations claimed by Apple were created by other companies.
Samsung said after the verdict that it was “unfortunate that patent law can be manipulated to give one company a monopoly over rectangles with rounded corners.”
“This is by no means the final word in this case,” Quinn said in a statement. “Patent law should not be twisted so as to give one company a monopoly over the shape of smartphones.”
The jurors’ determination that Samsung took Apple’s ideas probably matters more to the companies than the monetary damages, Marlett said.
“I don’t know if $1 billion is hugely significant to Apple or Samsung,” Marlett said. “But there is a social cost here. As a company, you don’t want to be known as someone who steals from someone else. I am sure Samsung wants to be known as an innovator, especially since a lot of Asian companies have become known for copying the designs of innovators.”
Apple and Samsung combined account for more than half of global smartphone sales. Samsung has sold 22.7 million smartphones and tablets that Apple claimed uses its technology. McElhinny said those devices accounted for $8.16 billion in sales since June 2010.
Samsung’s Galaxy line of phones run on Android, and ISI Group analysts viewed the verdict as a blow to Android as much as Samsung.
If Android lose any ground in the mobile computing market, that would hurt Google, too. That’s because Google relies on Android to drive mobile traffic to its search engine and services to sell more advertising.
Google entered the smartphone market while its then-CEO Eric Schmidt was on Apple’s board, infuriating Apple co-founder Steve Jobs, who considered Android to be a blatant rip-off of the iPhone’s innovations.
After shoving Schmidt off Apple’s board, Jobs vowed that Apple would resort to “thermonuclear war” to destroy Android and its allies.
samsung has launched more then 2 dozens of devices in global market of different price groups and hopefully the will become the market leaders of smartphones in future like Nokia which is globally market leader in cell phones just because of different price groups, so everyone can afford cell phone.
This is the only issue which Apple could’nt digest.
Apple invented those patents and no one should be allowed to stel them without buying the rights from apple. Very simple.
Unless your China which steals everything.
I don’t have china..
This ruling will actually increase innovation and competition. What is the incentive for entrepreneurs and corporations to spend billions of dollars on Research & Development to bring the latest gagets to market if within days, its competitors can steal the ideas (patents) and sell the same product? This will force Apple’s competitors to develop new technologies that are better Apple’s.
Apple is doing the same thing Microsoft did in the 90s. Pure monopoly.
Yes, I agree. I will buy Android from Samsung or another company to help vote against monopoly.
Koreans are tough, take hyundai, they settle a suite every now and than, does not bother them. Apple is controlling and they want monoply on devices understood but monoply on “pixels”? camon !!! this is just an ego war from apple, it runs on hype. Samsung supplies bulk of chips for apple phones and pads, wonder how that will shape up, it’s no surprise that apple was granted the upper hand in its own environment, it won’t be that easy when apple comes to table in asia and europe. A UK judge ruled out recently that samsung in no way look like apple. If you are a tech person you know how controlling apple devices are, I personally am glad that someone is taking it upto apple!!!
In Pakistan, all I care about is the fact that Samsung phones are more affordable than iPhones
Well, whatever. I believe that both Apple and Samsung have run out of ideas as innovation and new ideas in the tech world are now an extreme rarity. What will they do more besides improving processors and cameras? This is plain pathetic. Fighting over who came up with what just to cover up for the losses by this innovative saturation.
Peace!
its Always easy to produce cheap product copied from others……Its R&D cost is huge…we have to value the innovation OF JOBS…..
Umm..i think RIM manufacturer Blackberry was the first breed of smartphones, they werent research proficient nor social market savvy. End result, having being the innovator didnt get them ahead. Tthis is where Apple when beleaguered sought refugee with Steve Jobs who did a wonderful job in turning around the company. Still i am not satisfied with the ruling, American jury, judges and american company Apple wins the case, the defendant Samsung would need better judges to match the plaintiffs.
R&D costs of what? Tap to zoom and for making rectangle devices with rounded edges? Apple didnt like Samsung taking the smartphone share and that is why they took them to court.