Samsung was advancing ahead of everyone and the Smartphone market was dominated by this Korean company.
The tech world is brimming with discussions as Apple scored a big victory in its smartphone patent infringement case vs. Samsung late Friday afternoon as a jury awarded the victor $1.05 billion in damages.
Investors reacted favorably to the news, sending Apple’s shares up $11.73, or 1.7 percent, in extended trading to $674.95. Google, whose Android mobile operating system software powers many Samsung devices, fell $5.63, or less than 1 percent, to $673.
The verdict affects patents on a range of Samsung products including some of its popular Galaxy smartphones and its Galaxy 10 tablet -- devices alleged to have been copied from the iPhone and iPad.
But some devices are not affected, including the flagship Galaxy III S recently released, although they could be targeted in separate litigation.
The nine-member jury sided almost entirely with Apple Inc. in its patent dispute case with Samsung Electronics Co., awarding Apple nearly $1.05 billion in a “sweeping victory” over claims that the Korean electronics maker copied the designs of its iPhone smartphone and iPad tablet.
It was a dramatic demonstration of the home court advantage. Samsung Electronics can bear the $1.05bn in damages – in the second quarter of this year alone its operating profit was $5.86bn – but the hit to its reputation is substantial.
The verdict comes after less than three full days of deliberation in a high-stakes trial overseen by U.S. District Court Judge Lucy Koh in San Jose federal court.
Apple sued Samsung in April 2011, alleging it had “copied” the designs of the iPhone and iPad. Samsung countersued Apple in June 2011, saying the Cupetino, California-company had infringed on Samsung patents around wireless communications and camera phones.
The jury, made up of seven men and two women, found no such infringement on Apple’s part and said Samsung was entitled to “zero” in damages.
Here’s Apple’s statement on today’s verdict:
We are grateful to the jury for their service and for investing the time to listen to our story and we were thrilled to be able to finally tell it. The mountain of evidence presented during the trial showed that Samsung’s copying went far deeper than even we knew. The lawsuits between Apple and Samsung were about much more than patents or money. They were about values. At Apple, we value originality and innovation and pour our lives into making the best products on earth. We make these products to delight our customers, not for our competitors to flagrantly copy. We applaud the court for finding Samsung’s behavior willful and for sending a loud and clear message that stealing isn’t right.
This is what Samsung had to say:
Today’s verdict should not be viewed as a win for Apple, but as a loss for the American consumer. It will lead to fewer choices, less innovation, and potentially higher prices. It is unfortunate that patent law can be manipulated to give one company a monopoly over rectangles with rounded corners, or technology that is being improved every day by Samsung and other companies. Consumers have the right to choices, and they know what they are buying when they purchase Samsung products. This is not the final word in this case or in battles being waged in courts and tribunals around the world, some of which have already rejected many of Apple’s claims. Samsung will continue to innovate and offer choices for the consumer.
Meanwhile a Microsoft spokesperson, Bill Cox, senior director of marketing communications for Windows Phone division was jubilant, tweeting:
“Windows Phone is looking gooooood right now.”
So perhaps the boxy look for Windows Phone was a good design decision.
Apple lawyers are planning to ask that the two dozen Samsung devices found to have infringed its patents be barred from the U.S. market. Most of those devices are "legacy" products with almost nonexistent new sales in the United States. Apple lawyers will also ask that the judge triple the damage award to $3 billion since the jury found Samsung "wilfully" copied Apple's patents.
This verdict threatens the future of Google’s Android products. Based on this verdict, Apple will likely sue other competitors that use the Android system. The result will likely be an increase in costs to Android users because of licensing fees to Apple. This will drive many Android consumers over to Apple. Next to Samsung, the biggest loser today is Google.
Apple can also now go after HTC and Motorola, its two principal smartphone rivals in the US, with renewed vigour. They may have to consider whether to sue for peace, for Samsung lost despite being the biggest of the mobile makers, the biggest smartphone maker, the biggest implementer of Google's Android mobile software, and extremely rich — it spent $9.5bn on market in the past 12 months, and is a major sponsor of the Olympics.