Apple vs. Samsung Trial: An Apple Win and What it Means

That was shockingly fast! The jury for the Apple vs. Samsung trial in the US took a surprisingly short amount of time, two-and-a-half days precisely, to decide on the complex multi-billion dollar patent fracas and come to a unanimous verdict. The jurors seemed to have taken an extra hour the day before to deliberate on the case.
Let's take a look at the summary of the verdict -
  1. A preponderant number of Samsung devices found infringing Apple's Bounce-back, Pinch-to-zoom and Tap-to-zoom patents.
  2. Samsung phones found violating Apple's design patents covering clean front, rounded corners, uniform bezel etc.
  3. Samsung's tablets found not to be violating the iPad design patent covering clean front, edge-to-edge glass, thin bezel, thin outer border, and rounded corners.
  4. Samsung induced (or forced) its US divisions to infringe on the utility and design patents for a number of its phones.
  5. Samsung wilfully violated the said patents and had failed to prove them invalid.
  6. Samsung violated Apple's trade dress with respect to iPhone 3G alone, and not the iPad, and had diluted the brand with similar products (thus causing consumer confusion).
  7. Apple not found to be violating any of the Samsung's patents covering wireless standards among others.
  8. Samsung ordered to pay $1,049,343,540 as damages to Apple for its violations. (Samsung will get zilch for its efforts.)
  9. Samsung had not violated FRAND terms during licensing of its 3G patents.
  10. Samsung not eligible for royalty for its two 3G patents as part of patent exhaustion (it may be noted that Apple uses Intel chips that implement the said patents and that the latter has a license from Samsung).
  11. None of Samsung's patents proved invalid, despite Apple's prior art claims.

The results are in sharp contrast with the Seoul court's split verdict which found both Apple and Samsung to infringing on each other's patents. Both sides have started preparing for the next step - a preliminary hearing on injunctions is scheduled on September 20. Apple has to file its requests by August 27 and Samsung has got two weeks to respond. Meanwhile, Apple is visibly pleased at the outcome of the legal wrangle. Though it didn't win every single argument, it has been nonetheless substantial. "We make these products to delight our customers, not for our competitors to flagrantly copy. We applaud the court for finding Samsung’s behaviour wilful and for sending a loud and clear message that stealing isn’t right," the company has said in a statement to the New York Times.

Samsung, on the other hand, had nothing big to gain save for the consolatory decision related to its tablets (point 3 above). It has, in fact, come out strongly against the verdict stating it 'as a loss for the American consumer' and that '(t)his is not the final word in this case or in battles being waged in courts and tribunals around the world'. "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," it said in a statement.

The verdict has in fact profound implications in the industry. Most importantly, we would be soon seeing workarounds to the Apple's utility patents in several upcoming Android devices. Given that the jury found Apple's designs compelling and unique enough to be patented, newer phones and tablets will have to sport differentiable designs and that's something which is already happening. Lastly, it has given Apple an authorized ammunition to go thermonuclear on other Android handset manufacturers. The company is already at war with Motorola and HTC over similar claims and now these Android OEM's would have to think twice before jumping into any lawsuit. Who knows, we may even see some settlement talks in the future.

Samsung is most likely to appeal the verdict in a higher court, but the timing of the verdict is a sheer blessing for Apple, which is rumoired to announce its next-gen iPhone 5 in another two weeks. It's a massive opportunity to unleash an advertising blitzkrieg portraying Samsung as copycattish and unimaginative. It also nicely coincides with Tim Cook's one year completion as the CEO after taking over the reins from Steve Jobs post his demise. Microsoft's Windows Phone could also get some benefit out of this. Bill Cox, senior director - Windows Phone marketing communications, tweeted "Windows Phone is looking gooooood (sic) right now" minutes after the ruling was out.

Also perhaps, there is admittedly a love-hate relationship between the two companies that makes the ongoing feud even more interesting. Samsung is one of the biggest suppliers of computer chips and displays to the Cupertino based company for its mobile devices. It wouldn't entirely surprising if this camaraderie takes a beating in light of the present circumstances, though it seems very unlikely. Even if the battle has been between Apple and its serious competitor Samsung, at heart it has been about stifling the platform that has become insanely popular over the last few years. Competition is necessary for innovation and for that, Android needs to exist. And Apple must simply learn to co-exist.

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