After just three days of deliberation, the nine jurors assigned to the Apple/Samsung Patent infringement case answered all 700 questions and returned with a verdict in favor of Apple, and awarding them more than $1 billion dollars in damages. For the most part the financial impact to Samsung, one of the world’s largest electronics manufactures is minimal, but the impact to how smartphones are built in the future could be dramatic.
In what was covered with much less detail, a similar suit was being argued in South Korea, In that case, the court ruled that Apple and Samsung both infringed on each other’s patents and awarded damages to both parties, $22,000 to Apple and $35,000 to Samsung, far less than the 1 billion awarded to Apple in the US.
There is clearly a lot to be said for home court advantage, while South Korea recognized both companies were in violation of patents, the advantage went to Samsung, in the US however, Samsung was the clear loser, not only did the jury find in favor of Apple, but the did not feel that Apple in any way violated Samsung’s patents.
It is interesting how two cases being argued with virtually the same data have two entirely different outcomes. Currently phones and tablets that are on the market have not been pulled off shelves and no injunction has been granted, although experts are predicting that Apple will ask for an injunction on all devices that currently violate the patents, this could have a major impact for Samsung and for consumers, especially since three smartphones are sold to every iPhone. Samsung is expected to ask to have the verdict overturned and if that fails appeal the verdict to a higher court.
There are a few things that will be interesting to see as this dilemma unfolds. There are those that believe that patents, like the ones Apple has, stifles innovation, meaning that the organization will rely on what it has already built and continue to offer that to the marketplace. In this way, the organization remains status quo. Others will argue that it will force Samsung and others to become more innovative and find ways around the patents which will ultimately lead to innovation. Of course, if Samsung licenses the technology from Apple, than we probably will not see that new innovation.
Even if Samsung takes the innovative path to compete with Apple, the reality is that it will take time, time to develop, review, test and ultimately distribute the product, in the meantime the consumer receives less choices, demand goes up while supply goes down, a great mix for increased prices.
Frank Toscano is a 15+ year specialist in cloud based services focusing on Product Management, Marketing and Security within the Cloud. He has worked for EasyLink Services and Premiere Global Services in a global role providing hosted services to Fortune 1000 clients. He is currently seeking employment with a cloud based provider in a senior level Product/Marketing role.
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