What Now? Apple vs. Samsung verdict of $1B by Jury

Samsung, with a market cap around $170B, shed around 7% or $12B in market value due to declining stock price on the hype of the Apple win by Jury recommendation last Friday in the case Apple vs. Samsung, defending patents and intellectual property. Look to the right and you can see the shock and awe that is Samsung on the Korea Stock Exchange.

Samsung trades at extremely good valuations, between 10 and 15 percent earnings, meaning it’s core company is completely solid. But with the onset of mobile success over the past three years, Samsung has bolstered to be a serious contender with Apple. And Apple is not a company that you want to compete against and walk away scratch free. All of it’s growth has been hard fought and tactfully pried for to become the most valuable company in the world. Apple is a company built on patents, creating, and protecting property and with it’s blanket slated patents on just about anything that can be approved, Apple has successfully set themselves up to win over the jury over who sent a recommendation of a $1B pay out to be determined by Judge Lucy Koh.

Remember, that this is not a verdict, rather a recommendation to the Judge. $1B payout and potential sales loss is a serious chunk of Samsung as a company. It could be argued as much as 2% of it’s $170M market cap and no company is going to let that much get away without a fight. Samsung’s next step is to obviously appeal, not only to Judge Lucy Koh, but if failed, also take the appeal to the U.S. Court of Appeals for the Federal Circuit. This is a specialized court that focuses on patents (and which is also known for 50% changes in verdicts). This process will tie up the case in a mess that could take up to a year to a year and a half.

Which means, “grid-lock heaven” for Samsung. Hold it up in court as long as possible. There is still much more to come for the story between Apple and Samsung. Samsung being at fault for copying Apple; or Apple blanketiering patent law, more to come…

About Phillihp Harmon

I'm Phillihp. My name can be spelled the same way forwards and backwards, so can my posts... if you wish. I'm out here exploring, learning, and sharing what I find. This is more for fun and personal growth, I aim to be as consistent as possible, so check back daily!
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2 Responses to What Now? Apple vs. Samsung verdict of $1B by Jury

  1. evan says:

    What I found to be really interesting is the same lawsuit that was fought in NDCA was also happening in front of a three-judge panel in the Seoul Central District Court in South Korea at the same time. Although not in front of a jury, the South Korea panel found Apple violated a couple of Samsung’s wireless patents, meanwhile, in the US, these were the same patents Samsung countersued and the Jury found Samsung’s patents were not copy infringed upon. Just like in Europe, where the same counter lawsuit from Samsung was presented as well, the courts ruled in favor of Apple and the Jury in the US, because by using Intel chips on iPhones/iPads which had licensed the UMTS/3G patents from Samsung, the use of the 3G standard was protected by “patent exhaustion” (you can’t charge someone twice for using the same patent).

    Samsung said although they agreed the 3G standard is licensed under the use of the Intel chips, it was designed and built in Germany and shipped to China – and the law requires the chips must be sold in the US for “patent exhaustion” to apply.

    So, the Jury in the US case had to decide: is the meaning of “sold” where they’re incorporated into an iPad or iPhone – or where Intel and Apple signed the contract for their inclusion in the devices? Apple’s lawyer says the receipt lists “California [Apple's HQ] and Chicago”. The jury sided with Apple with their evidence meanwhile Seoul Central District Court in South Korea said Apple was in violation and as a result iPhones are banned in their country.

    It all boils down to interpretation folks and this is why, even if you do everything correctly and provide proof that you did, you would think common sense would overrule! Fortunately, the Jury in the US had common sense and wasn’t fooled by Samsung and Apple was found not to infringe on Samsung’s products.

    Source: http://www.guardian.co.uk/technology/2012/aug/22/apple-samsung-patent-dispute

    • phillihp says:

      My point on this article is that this would be a verdict that could potentially take away 2% of Samsung and much more in potential growth in the future. Although we see the public “recommendation” by jury, this will continue to be fought.

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