Apple and Samsung

Tuesday, August 28th, 2012

Apple has won its claim in the USA that Samsung have infringed its Patents. The jury believed the Apple case was more compelling than Samsung’s counter-claim. This could potentially cost Samsung dearly. The fine imposed is $1.05bn.  Apple originally sought compensation of $2.5bn.

Samsung is likely to appeal against the decision and may ask for the appeal to be tried by a judge. Juries typically award higher compensation than judges. However both Apple and Samsung would need to agree to such an arrangement before that becomes a reality.

The fine though is not the only cost. It will have an impact on sales. The market certainly thinks so. Samsung’s market capitalisation (Share price x no of shares issued) plunged by almost 7.5% after the case. This equates to a $12bn drop in the value of the company. Clearly the market is concerned.

This case overshadowed a similar battle being waged in the South Korean Court. Samsung were told to pay Apple $22,000 but Apple was told to pay Samsung $35,000. Both had infringed each other’s patents.

Clearly Intellectual Property is a complex area. Get it wrong and the consequences can be dire. We probably have not heard the last of this saga but it certainly reinforces the message that it is important to protect your ideas, particularly if they a good ones.