Apple vs. Samsung – Hammer and tongs

Only the lawyers are winning.

• Apple and Samsung are at it again and for the next few weeks the airwaves will be full of sensational claims and counter claims.
• At the heart of the trial is Apple’s assertion that a number of Samsung devices infringe 5 Apple implementation patents for the following:
  • Data such as phone numbers and addresses appearing as links in text messages
  • Background data synchronisation.
  • Universal search (i.e. search the whole device)
  • Slide to unlock
  • Auto-complete texts.
• In reality Apple thinks that Samsung infringes much more than just these functions but it has put forward these 5 patents as it thinks that these are its best chance to win a ruling of infringement.
• Samsung has countersued with two patents one relating to camera and folder organisation and the other to video transmission.
• This trial once again exposes the critical flaw of the patent system in its current form.
• This is that the legal cycle is much longer than the device life cycle meaning that by the time an infringement finding can be won, the device is already obsolete and no longer shipping.
• The Samsung devices at the heart of this trial are the Samsung Galaxy S3 and the Samsung Galaxy Note 2 both which are almost 2 generations out of date.
• This means that an injunction is virtually worthless and any back royalties awarded will be tied up for years in appeals as is the case with the trial that ended in August 2012.
• It seems likely that Samsung will lose this trial and hefty damages will be awarded but it will be years before Apple sees any of the money.
• The problem for Apple is that its strategy to stop Samsung benefiting from devices that it thinks have copied its innovation is totally ineffective.
• The problem for Samsung is that at some point it will have to pay the piper and it risks ending up with an injunction should the legal environment change.
• Furthermore both companies are wasting vast amounts of money and management time on fighting each other.
• This is why it is in both their interests (and those of shareholders) to work out a deal where each company licences the others’ portfolio.
• This would probably result in a net payment to Apple from Samsung but is almost certain to be far less than either company is currently paying out in terms of legal fees.
• The only winners here are the lawyers but I am still hopeful that Apple and Samsung will realise the futility of this war and settle all outstanding suits.
• I had hoped this would happen last year. I am ever the optimist.