Apple v Samsung Epilogue; Real Impact of Case $12B ; Verdict Likely to be Overturned

[dgstorm]

We have an Epilogue to the Apple versus Samsung case. This culling of info includes some very interesting "side-plot" details, one of which may just segue into a sequel in which Samsung could still turn things around. Here's the skinny, with our usual breakdown summary style,

First, the real impact of this case for Samsung was not the $1 Billion dollar judgement, nor the possibility of "Trebled Damages" jumping that verdict up to $3 Billion (because of willful infringement). You might initially think that the real impact of this case is that 8 Samsung devices are likely to be banned by the U.S. court. This includes devices like the Galaxy S II, which is still a hot seller in the U.S. However, those won't really be a big deal to Samsung either. In fact, Samsung has already made a statement that they are committed to their consumers in the U.S. and they will develop workaround solutions to all the devices they still sell here. (Source: BGR)

The real impact of this case has already been felt by Samsung, and it was simply a ripple effect caused by investors getting spooked by the results of the case. After the verdict, a pretty sizable chunk of investors dumped 7.5% off of Samsung's stock price. This amounted to shaving off $12 Billion dollars of Samsung's market worth. Ouch! And, this was all while Apple's stocks soared on the news, adding $15 Billion in value to the Cupertino clan. Yes, my friends, this may have been Apple's real goal all along. Now, in the long run, this will correct itself and Samsung will be back to a more reasonable valuation. Lest you forget, Samsung does make other things besides mobile devices, and they are quite successful at it too. Regardless, it's amazing to see how companies make war on one another and what the real aftermath is all about.

The second interesting footnote to this case is that there is a high probability the verdict in this case will be overturned on appeal. One of our members, armeddroid, found a great story over on Gizmodo that sheds new light on the case. The story points out that Samsung's next move in the appeals process will likely be to have the case completely overturned because the jury didn't perform its duties properly. The article is very lengthy, but is definitely worth a read when you get the chance. I will try to summarize briefly to give you the gist of it. Basically, the jury likely rushed their verdict, they had a ton of inconsistencies in their damages award as well as their general findings, and they didn't really follow the jury instructions properly. (Obviously the article, linked above, shares much greater detail and is very eye opening.)

The bottom line is that if the jury had really done their job properly, it would have been impossible for them to decide the case in three days. In the Gizmodo article cited above, several patent law experts indicate that it would have taken them three days just to go over the jury instructions properly. There were 700 questions!

Additionally, Bloomberg scored an interview with the Jury foreman in the case, and many of his statements were not very encouraging of the way the jury handled the case. (You can find the video here, Bloomberg.) It looks like the jury had already decided the case before deliberations, and intended to punish Samsung with their verdict. It's important to note this, because this is completely contradictory to the jury instructions they were given:

The amount of those damages must be adequate to compensate the patent holder for the infringement. A damages award should put the patent holder in approximately the financial position it would have been in had the infringement not occurred, but in no event may the damages award be less than a reasonable royalty.

This will be the main point that will likely get the jury's verdict overturned. Although it seems like a big victory for Apple now, this story is far from over. I wonder what the next chapter in the saga will bring?

[razingkane]

If anything Apple banning these phones will speed up the Android innovation....something Apple cannot afford let happen. The past few years Android phones have taken what works and made it better, bigger, faster while Apple has relied on its 4 year old design with minor improvements that only the hardcore Applephiles and the wanna be cool crowd have talked themselves into buying.

There is no way Apple will keep it's reputation intact if they succeed in having Samsung phones banned......And reputation is right up there with innovation in the Apple world. The iPhone, iPhone 3 and iPhone 4 designs have been relegated to the cell phone dust bin. The iPhone 3 and 4 have been neither revolutionary nor evolutionary.....the fan-boys I know even agree to that. Now Apple is forced to increase their screen size. I’m guessing the iPhone 5 screen at 4.065 is because Android already has 4.0/4.3/4.5/4.8/5.0. Apple has boxed themselves into a very limited amount of screen sizes. I have a feeling Apple will surprise the world with their iPhone 5 but only in the “looks cool” arena which is what all Apple fan-boys go for.

On the Samsung side with Apple request to ban these Samsung phones in the long run means nothing. All of these phones will be at end of life by the time everything is said and done. Samsung has plenty of new phones in the pipeline and Samsung has known for quite some time that Apple is gunning for them on their phone design so changes have already been designed in.

[Ollie]

If anything Apple banning these phones will speed up the Android innovation....something Apple cannot afford let happen. The past few years Android phones have taken what works and made it better, bigger, faster while Apple has relied on its 4 year old design with minor improvements that only the hardcore Applephiles and the wanna be cool crowd have talked themselves into buying.

There is no way Apple will keep it's reputation intact if they succeed in having Samsung phones banned......And reputation is right up there with innovation in the Apple world. The iPhone, iPhone 3 and iPhone 4 designs have been relegated to the cell phone dust bin. The iPhone 3 and 4 have been neither revolutionary nor evolutionary.....the fan-boys I know even agree to that. Now Apple is forced to increase their screen size. I’m guessing the iPhone 5 screen at 4.065 is because Android already has 4.0/4.3/4.5/4.8/5.0. Apple has boxed themselves into a very limited amount of screen sizes. I have a feeling Apple will surprise the world with their iPhone 5 but only in the “looks cool” arena which is what all Apple fan-boys go for.

On the Samsung side with Apple request to ban these Samsung phones in the long run means nothing. All of these phones will be at end of life by the time everything is said and done. Samsung has plenty of new phones in the pipeline and Samsung has known for quite some time that Apple is gunning for them on their phone design so changes have already been designed in.

I totally agree on this spurring innovation, but Samsung's bulk of phones sales are still their previous iterations. Which can't get around the ridiculous" rounded corner" infringement.

The only thing that will stem the massive Apple following will be Android hardware manufacturer's plan that has been succeeding thus far. Better designs, better functionalities, and bringing in more devs for better app user experiences (something apple apps still outshine Android apps on).

Sent from my GT-I9300

[Mujibar]

Apple's "rest on our laurels" approach seems strangely familiar in the smartphone realm. RIM anyone?

~ GNexified ~

[sauspud]

good read, looking forward to see what happens next.
Hope Google steps in with a knockout blow.

[sauspud]

Just had call from an iSheep. And most of his apps now don't work or appear in the istore anymore. Example, anything google like chrome, netflix, most games, search, sky +, anything BBC etc.

So much for better apps.

[razingkane]

I totally agree on this spurring innovation, but Samsung's bulk of phones sales are still their previous iterations. Which can't get around the ridiculous" rounded corner" infringement.

The only thing that will stem the massive Apple following will be Android hardware manufacturer's plan that has been succeeding thus far. Better designs, better functionalities, and bringing in more devs for better app user experiences (something apple apps still outshine Android apps on).

Sent from my GT-I9300

I agree....I believe the rounded corners is what will be tossed out on appeal. I think there is so much scrutiny on the US Patent office right now for the ridiculous cell phone patents that have been awarded to Apple based upon generalities of design that they will not survive the appeals process. Which means all this ends back in court and by then the hardware and software technology will have passed up what we see and use today. The more the courts are involved and the more all this plays out in the traditional news world and in social media Apple will end up having its reputation crushed.

[CR6]

Lots of great comments here.
I dont however think Apples reputation will ever be crushed. As we all know, you can stick an Apple logo on a steaming pile of.... cowpie (edited for our family friendly site) and fanboyz will still buy it and think it's the best thing since sliced bread!

tap'n

[razingkane]

Lots of great comments here.
I dont however think Apples reputation will ever be crushed. As we all know, you can stick an Apple logo on a steaming pile of.... cowpie (edited for our family friendly site) and fanboyz will still buy it and think it's the best thing since sliced bread!

tap'n

Now that's funny because my brother is a fanboy. He is a graphic artist but still....Apple does no wrong. I like tease him and say that when he wakes up in the morning he bows in the direction of Cupertino. My other brother has Apple products but just because they are the cool thing to have. When he saw my S3 he just shook his head and said wow this is so much better than my iPhone.

My theory on Apples reputation being crushed is that if there is one thing a US consumer hates it's being told they cannot buy something because it's been banned.