Apple v Samsung: $1bn win for patent lawyers

Samsung’s shares tumbled nearly 8% on Monday after a California jury upheld claims by rival smartphone manufacturer Apple that the Korean electronics company had infringed its patents.

The court ordered Samsung to pay $1.05bn in damages, Reuters reported, but the impact on the company’s share price was more significant, with more than $12bn wiped off its value on the day of the verdict.

Samsung Electronics said it will contest the US court ruling, which could see a ban placed on the contested products, which include the Galaxy SII smartphone reviewed by AccountingWEB last March and its successor the Galaxy SIII.

“We will move immediately to file post-verdict motions to overturn this decision in this court and if we are not successful, we will appeal this decision to the Court of Appeals,” the company said.

“There are still too many variables including the final ruling to come at least a month from the recent verdict, and whether there will be a sales ban on Samsung’s main sellers such as the Galaxy SIII," said a fund manager at one of the company’s biggest institutional shareholders.

Reuters analysis pointed out oddities in the case, such as Samsung’s role as a key component supplier for Apple’s devices, and its counter accusations that the US manufacturer infringed some of its intellectual property. Another of Apple’s targets may well be Google’s Android operating system, which powers Samsung’s devices.

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Comments
KH's picture

Before and After iPhone photos are the killer

KH | | Permalink

Although I use Apple for my computers etc, I am not a fan of the way that this company has pursued patent infringement claims against all and sundry .... but to be fair, if you look at the Samsung smart phone directly prior to the release of the first iPhone, and then look at Samsung's product history post that date, it is blatant copying of everything innovated by the iPhone. There is one good point to all this though ... assuming Apple wins overall in this patent battle, then all the other companies will have to smarten up their design and product-usability skills, so everyone apart from Apple might well benefit by new form-factors and new levels of user-friendliness from all those other mega technology companies.

As an aside, I bought a cheap Samsung mobile phone to replace the 12-year old brick I've been intermittently using (use my mobile phone 2 or 3 times a year max), and it took me all of four hours to work out how it worked ... so maybe there is nobody out there to knock Apple off its perch. Even my wife, who's a writer and hates technology and still reminisces about her old IBM Golfball typewriter, can use any Apple product without even opening the instruction manual.