IPR: Samsung vs. Apple – Far from done

RFM AvatarSmall

 

 

 

 

 

Only the lawyers are benefitting from this pointless war.

  • Yesterday’s verdict has no bearing on the eventual outcome of what has turned into a pointless war of tit for tat.
  • Apple has won a $290m ruling against Samsung in its continuing battle over patent infringement.
  • This ruling comes from the court case that Apple emphatically won over a year ago with damages of $1.05 being awarded.
  • This award was then reduced by $410.5m by Judge Lucy Koh after finding that the jurors had miscalculated when arriving at the $1.05bn figure.
  • Apple naturally appealed and yesterday’s finding reinstates $290m of the $410.5m that was originally knocked off the total.
  • Samsung had calculated the total to be $52m while Apple had calculated it at $380m.
  • This trial has resolved nothing.
  • Samsung will of course now appeal which in addition to all of the other outstanding complaints, trials and appeals ensures that the merry-go-round has plenty of momentum left.
  • It is likely to be many years yet before Apple sees a penny from Samsung and in that instance I very much doubt that this latest figure will end up being the one paid.
  • This strongly highlights both the futility of this battle and the sorry state of the US patent system.
  • The single biggest problem is that legal cycle is substantially longer than the product cycle.
  • This means that by the time infringement has been proved and all appeals heard, the products in question have not been shipping for some years. (see here)
  • The purpose of the patent system is to allow an innovator to recoup his investment via the grant of a temporary monopoly.
  • With the way the US patent system currently operates, this goal can never be met and so some form of reform is needed.
  • Hence it is in the best interest of both Samsung and Apple to settle this issue and get back to the business of making mobile devices and developing their digital ecosystems.
  • Unfortunately, Apple and Samsung look set to continue slugging it out in this pointless and hideously expensive war that benefits no one but the lawyers.

RICHARD WINDSOR

Richard is founder, owner of research company, Radio Free Mobile. He has 16 years of experience working in sell side equity research. During his 11 year tenure at Nomura Securities, he focused on the equity coverage of the Global Technology sector.

Blog Comments

> “The purpose of the patent system is to allow an innovator to recoup his investment via the grant of a temporary monopoly.”
> “With the way the US patent system currently operates, this goal can never be met […]”
The goal is met pretty well when it is a large company against a small one or a non-practicing entity against any size actual ones. 🙂

Now that Samsung phones do not look like cheap iPhone knock-offs anymore and the first lawsuit reached its resolution at the district level, an amicable settlement can easily be reached through a lump sum payment, a royalty stream and a no-cloning agreement. Samsung management could argue copying was necessary and beneficial in a business sense during its early efforts before its designs reached maturity, (as in totally worth the price) and Apple could get its vindication and claim that its aggressive efforts forced the competition to abandon blatant clones. Win win. Of course, I am not the executive who needs to sign off on a check worth billions of dollars.

I agree….settlement will be best for both…very little chance of that happening anytime soon tho!!…