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Samsung lost an important legal round to Apple. But looking ahead, Google has Android patent weapons of its own.
Apple iPhone 5 Vs. Samsung Galaxy S III: What We Know
Apple's triumph over Samsung in its
patent infringement case will benefit Apple in the short term,
prolonging the survival of its high profit margins and limiting
competitive pressures from Android hardware makers.
But the billions Apple could reap in damages and future licensing fees
won't be enough to cripple Samsung, or Google, the power behind Android.
What's more, Apple's victory aids
Microsoft, a company that competes with Google and also covets Apple's
mobile business. Opening the door to Windows Phone in order to shut it
on Android doesn't make Apple's mobile products more compelling or strengthen the foundation of Apple's business.
The jury's decision to award over
$1 billion in damages to Apple has hit Samsung hard, at least as much as
a company with $148.6 billion in 2011 sales can be harmed by being
forced to pay less than 1% of its revenue at some later date, after the
appeals have potentially reduced the fine. Samsung characterizes the
verdict as a loss for the American consumer rather than a win for Apple.
The decision, the company said in
an emailed statement "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."
Samsung says
that this is not the final word in the case and that it will persevere
in other legal venues around with world, where some Apple claims have
already been rejected. And it insists it "will continue to innovate and
offer choices for the consumer."
Karen Lisko, senior litigation
consultant with Persuasion Strategies, a litigation advice group within
the law firm of Holland and Hart, sees Apple's win as having a
significant effect on future jurors. "The jury pool for the next trial
is watching this case and this total rout in favor of Apple will not
escape notice," she said in a phone interview.
"Given this outcome, other
companies are going to have to work harder to skirt around Apple's
patents because they've been warned now," she said.
The goal of the patent system, she
said, is to promote innovation and Samsung can demonstrate that and
avoid future infringement claims with relatively minor changes. However,
she said, given the ruling favoring Apple, juries may want to see more
than minor changes if and when Apple brings future patent claims against
Samsung or other Android handset makers.
Samsung,
she said, erred during the trial in focusing so heavily on the
competitive impact of Apple's patents. "When you're defending a case in a
patent infringement lawsuit, you first have to focus on your strong
attempts to work around the patent," she said, noting that the Patent
and Trademark Office is highly respected by most jurors. "Samsung should
have focused more on what it does well as a company instead of saying
that Apple should not have gotten these patents. Jurors often shut down
when the defendant goes after the jugular of the plaintiff."
Apple meanwhile is showing no such
restraint. On Monday, the iPhone maker filed to ban eight Samsung
products as a consequence of its patent win. It is seeking an injunction
on the sale of four Galaxy S2 models, two Galaxy S models, the Droid
Charge, and the Galaxy Prevail. Judge Lucy Koh, who has been overseeing
the case, is expected to rule on the request at a later date.
Brian J. Love, assistant professor
of law at Santa Clara University, said in a phone interview that he
expects Samsung will attempt to persuade the judge to set aside the
verdict and to rule as a matter of law on various issues. He said that
if Judge Koh enters a permanent injunction against the many Samsung
products at issue in the case then he'd expect an appeal. He said
there's a good chance the federal circuit would stay such an injunction
during an appeal. That could take a year or more.
A further delay would soften the
impact of any injunction because the products in question would no
longer be relevant in the market. "These phones are already at least a
year old," Love said. "In another year, [after the appeal], they'd be
two-years-old. These product life cycles are short. There's a good
chance Samsung would be ready to let these products phase out on their
own."
Google,
meanwhile, can be expected to develop software patches to alter
Android, like the one it released in July to obviate an injunction on
Samsung's Galaxy Nexus, said Love. That patch altered the way search
worked on the phone, to get around an Apple universal search patent.
As for Apple's design patents, Love doesn't see these as being problems for Android handset makersgoing
forward. Getting around design patents is usually pretty trivial, he
said, because they cover ornamentation rather than function. However, he
acknowledged that the cost can become substantial if it means retooling
an assembly line.
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