Off Topic: Apple triumphs over Samsung, awarded over $1 billion damages

Apple triumphs over Samsung, awarded over $1 billion damages


















By Gerry Shih
SAN JOSE, California | Fri Aug 24, 2012 7:37pm EDT

(Reuters) - Apple Inc. scored a sweeping legal victory over Samsung on Friday as a U.S. jury found the Korean company had copied critical features of the hugely popular iPhone and iPad and awarded the U.S. company $1.051 billion in damages.
The verdict -- which came much sooner than expected -- could lead to an outright ban on sales of key Samsung products and will likely solidify Apple's dominance of the exploding mobile computing market.
A number of companies that sell smartphones based on Google's Android operating system may now face further legal challenges from Apple, a company that is already among the largest and most profitable in business history.
Shares in Apple, which just this week became the biggest company by market value in history, climbed almost 2 percent to a record high of $675 in after-hours trade.
Brian Love, a Santa Clara law school professor, described it as a crushing victory for Apple: "This is the best-case scenario Apple could have hoped for."
The jury deliberated for less than three days before delivering the verdict on seven Apple patent claims and five Samsung patent claims -- suggesting that the nine-person panel had little difficulty in concluding that Samsung had copied the iPhone and the iPad.
Billions of dollars in future sales hang in the balance.
Apple's charges that Samsung copied its designs and features are widely viewed as an attack on Google Inc and its Android software, which drives Samsung's devices and has become the most-used mobile software.
Apple and Samsung, two companies that sell more than half the world's smartphones and tablets, have locked legal horns in several countries this year.
Earlier on Friday, a South Korean court found that both companies shared blame, ordering Samsung to stop selling 10 products including its Galaxy S II phone and banning Apple from selling four different products, including its iPhone 4.
But the trial on Apple's home turf -- the world's largest and most influential technology market -- is considered the most important.
The fight began last year when Apple sued Samsung in multiple countries, accusing the South Korean company of slavishly copying the iPhone and iPad. Samsung countersued. Apple had sought more than $2.5 billion in damages from Samsung, which has disputed that figure.
The companies are rivals, but also have a $5 billion-plus supply relationship. Apple is Samsung's biggest customer for microprocessors and other parts central to Apple's devices.
A NEAR CLEAN SWEEP?
The U.S. jury spent most of August in a packed federal courtroom in San Jose -- just miles from Apple's headquarters in Cupertino -- listening to testimony, examining evidence and watching lawyers from both sides joust about seven Apple patents, five Samsung patents, and damage claims.
Jurors received 100 pages of legal instructions from U.S. District Judge Lucy Koh on August 21 prior to hearing the closing arguments from attorneys.
Lawyers from both tech giants used their 25 hours each of trial time to present internal emails, draw testimony from designers and experts, and put on product demonstrations and mockups to convince the jury.
At times, their questions drew testimony that offered glimpses behind the corporate facade, such as the margins on the iPhone and Samsung's sales figures in the United States.
From the beginning, Apple's tactic was to present what it thought was chronological evidence of Samsung copying its phone.
Juxtaposing pictures of phones from both companies and internal Samsung emails that specifically analyzed the features of the iPhone, Apple's attorneys accused Samsung of taking shortcuts after realizing it could not keep up.
Samsung's attorneys, on the other hand, maintained Apple had no sole right to geometric designs such as rectangles with rounded corners. They called Apple's damage claim "ridiculous" and urged the jury to consider that a verdict in favor of Apple could stifle competition and reduce choices for consumers.
The California trial has produced its share of drama and heated moments. Lawyers routinely bickered over legal matters in the jury's absence, filed rafts of paperwork to thwart each other's courtroom strategy, and sometimes even resorted to public relations tactics to make their views known.
(Additional reporting by Dan Levine, Poornima Gupta and Edwin Chan,; Editing by Bernard Orr, Jonathan Weber, Leslie Gevirtz, Gary Hill)


http://www.reuters.com/article/2012/08/24/us-apple-samsung-trial-idUSBRE87N13V20120824

This is Huge!!!

What follows are early reactions to the news.
Mark Lemley, a professor of Stanford’s law school, spelled out just how enormous a win this was:
In an update posted on LinkedIn, Al Sabawi, a former I.B.M. executive and founder of Quantopix, a software company, said Samsung deserved to lose.
Paul O’Brien, founder of MoDaCo, a site focused on Windows smartphones, said this sounded like good news for Microsoft and its Windows phone platform.
Robert Barr, executive director of University of California-Berkeley’s Center for Law and Technology, spelled out what this would mean for the tech industry as a whole. It’s going to make it very difficult for not only Samsung but for other companies to mimic the Apple products:

So if I was thinking about changing to the Galaxy S II for xmas, should I do it now?

good thing i got my iphone6 i mean galaxy s3 already

RunLeeRun said:

So if I was thinking about changing to the Galaxy S II for xmas, should I do it now?

Click to expand...

good question....if u like the Galaxy then yes I would...if u wait a few weeks u might save some $$$

Samsung will appeal...which could allow the sale of these phones for a few months if not another year....JMO

What the Apple-Samsung verdict means for consumers

By Troy Wolverton and Brandon Bailey

Mercury News



Posted: 08/24/2012 07:41:47 PM PDT
Updated: 08/24/2012 07:46:28 PM PDT



Mercury News
For consumers, Apple's (AAPL) sweeping patent victory over Samsung could mean fewer choices of mobile phones and tablets and higher prices in the short term but more innovative and distinct gadgets over the long haul, legal and industry analysts said.
The $1 billion verdict in the iPhone maker's favor will likely force device manufacturers to be extra careful to avoid running afoul of Apple's potent patents, those experts said.
"Clearly this ruling sets a precedent for the future of mobile device design," said Chris Jones, an analyst with Canalys, a market research firm that focuses on the mobile industry.
Apple had charged that Samsung blatantly copied the hardware designs and user interface elements in its iconic iPhones and iPads, and the jury largely agreed. Legal experts said the verdict will undoubtedly be appealed, and it may be months or years before the final impact is clear. But they predicted Apple will be emboldened to step up its legal battles against a host of other smartphone companies whose products, like those of Samsung's that were on trial in the case, run on Google's (GOOG) Android operating software.

Apple sued many of those companies after its late CEO, Steve Jobs, vowed to go "thermonuclear" against Google for what he described as "grand theft" in copying Apple's iPhone operating system.
While the findings of the jury in the Samsung case aren't binding on other disputes, Santa Clara University law professor Brian Love said the verdict will be "persuasive" in convincing lawyers for other smartphone manufacturers that they could face a fate similar to Samsung's. That could make them more likely to settle other cases rather than risk going to trial.
Friday's verdict -- and subsequent suits or settlements -- could also force Samsung and other companies to pull some of their products off the market.
And it could prompt Apple's competitors to slow the rollout of new products, said analysts. In addition to the design and quality checks devices go through before they are released, the verdict will likely force Apple's competitors to run their products by their lawyers to make sure they aren't violating any of Apple's -- or anyone else's -- patents, said Will Stofega, a mobile industry analyst with IDC, another market research firm.
"Clearly this is going to mean a slower design cycle," said Stofega.
That could be a big change for consumers. One of the things that has marked the smartphone market in recent years -- and arguably helped Android become the dominant operating system -- has been the frequent release of new Android-based devices.
"I think this will probably lead to fewer devices," said Jones. Android device makers "are going to have think twice about pushing these products out."
Android smartphones and tablets may also start to cost more. Apple rivals are likely to try to license the company's patents, something that would raise manufacturers' costs, said Ken Dulaney, a wireless industry analyst with market research firm Gartner.
"I think this means higher prices," said Dulaney. "Probably not a lot, but they will rise."
What worries Dulaney more is the impact of the jury's finding that Apple's "pinch to zoom" patent is valid and that Samsung violated it. The pinch gesture is already found in a wide range of devices, he noted. And that number will grow because it is a key gesture in Windows 8, the new version of Microsoft's PC operating system that is due out later this year, he said.
"Pinch and zoom is so fundamental. You can't work around it," he said.
But over time, the verdict will likely force manufacturers to find ways to work around Apple's patents and create their own designs and features, said legal and industry analysts. Apple, in fact, has argued that strong patent enforcement is needed to protect its innovation.
In terms of innovation, "this may be a catalyst instead of an inhibitor," said Stofega.
The jury's findings give Apple a strong case to argue for court injunctions barring Samsung from selling its infringing phones in the United States, said Colleen Chien, also a law professor at Santa Clara University. If that happens, she added, "you're going to see a diversity of designs coming forward. Samsung is an extremely innovative company, and they're going to adapt to the rulings."
The ruling could also benefit Microsoft, whose Windows Phone operating system has struggled in the market, but is arguably more distinct from Apple's software than Android and hasn't drawn fire from the Cupertino-company's legal team. Many of the same companies that make Android devices also make Windows or Windows Phone-based devices, and the ruling could encourage them to shift their efforts more toward Microsoft's software.

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Above is the whole verdict document

http://www.washingtonpost.com/world...1f63ca-ee55-11e1-b624-99dee49d8d67_story.html


South Korean court rules Samsung didn’t copy Apple’s iPhone design, but both infringed patents



SEOUL, South Korea — South Korean phone maker Samsung won a home court ruling Friday in its global patent battle against Apple and its popular iPhone and iPad devices. The ruling came hours before Apple prevailed in a similar case in the U.S.


Apple, Samsung face sales bans in Korea Hayley Tsukayama AUG 24
In a mixed ruling, Apple and Samsung both must pull some products from store shelves


http://www.washingtonpost.com/world...be8c30-ede8-11e1-b624-99dee49d8d67_story.html



Susan Decker AUG 24
Apple hopes to thwart efforts by Motorola to block imports of the iPhone and iPad.






Judges in Seoul said Samsung Electronics Co. didn’t copy the look and feel of the iPhone and ruled that Apple infringed on Samsung’s wireless technology.
However, the judges also said Samsung violated Apple’s technology behind a feature that causes a screen to bounce back when a user scrolls to an end image. Both sides were ordered to pay limited damages.
The Seoul Central District Court ruling called for a partial ban on products from both companies, though the verdict did not affect the latest-generation phones — Apple’s iPhone 4S or Samsung’s Galaxy S III — or the newest iPad. Both sides were also ordered to pay limited damages.
The ban applies only to sales in South Korea, and the ruling is part of a larger, epic struggle over patents and innovation unfolding in nine countries.
The biggest stakes are in the U.S., where Apple is seeking $2.5 billion from Samsung over allegations it has created illegal knockoffs of iPhones and iPads. Hours after the South Korean ruling, a federal jury in San Jose, California, ruled that Samsung ripped off the innovative technology used by Apple to create the iPhone and the iPad.
The jury ordered Samsung to pay Apple $1.05 billion, though an appeal is expected. A judge was expected to rule later on whether Samsung must pull devices from the U.S. market.
The fact that both rulings came Friday was coincidental. The judge overseeing the U.S. case had ordered jurors there to refrain accessing any news regarding the two companies.
The Seoul ruling was a rare victory for Samsung in its arguments that Apple has infringed on its wireless technology patents. Those arguments previously have been shot down by courts in Europe, where judges have ruled that they are part of industry standards that must be licensed under fair terms to competitors.
“This is basically Samsung’s victory on its home territory,” said patent attorney Jeong Woo-sung. “Out of nine countries, Samsung got the ruling that it wanted for the first time in South Korea.”
The ruling ordered Apple to remove the iPhone 3GS, the iPhone 4, the original iPad and the iPad 2 from store shelves in South Korea, saying that the products infringed on two of Samsung’s five disputed patents, including those for telecommunications technology. South Korea is not a big market for Apple.
The court also denied Apple’s claim that Samsung had illegally copied its design, ruling that big rectangular screens in cases with rounded corners had existed in products before the iPhone and iPad.
“It is not possible to assert that these two designs are similar based only on the similarity of those features,” the court said in a ruling issued in Korean and translated into English by The Associated Press. It also said individual icons in the Samsung products do not appear similar to the icons Apple used in the iPhone

just great, like apple needs more

8 Samsung phones that copied Apple's design

A jury found 16 Samsung smartphones infringed on Apple's design patents. Here are eight notable ones and how much Apple got for each.



Fascinate
1 of 8


Payment to Apple: $143,539,179


The Verizon (VZ, Fortune 500) version of the Samsung Galaxy S was found to have infringed on Apple's patented front-panel design, according to the jury's ruling on Friday.


Galaxy S II
2 of 8






Payment to Apple: $256,886,611
The Galaxy S II is one of Samsung's most popular phones, hitting 20 million in sales globally in less than a year. There were five versions of the phone sold in the United States, including two made for nationwide carriers T-Mobile and AT&T (T, Fortune 500). Adding up the penalty Samsung had to pay for each unique version means that Apple is set to receive more than $256 million for Samsung's infringement.
The Galaxy S II, which hit stores in April 2011, was found to mimic the front of the iPhone, but the jury found that it did not violate an Apple design patent for the back of the iPhone, as Apple had claimed.
The jury also found that the Galaxy S' app layout violated a patent held by Apple (AAPL, Fortune 500). The Fascinate fetched the biggest single reward for Apple of all the Samsung phones in question.


Mesmerize
3 of 8






Payment to Apple: $53,123,612
Offered exclusively on regional carrier U.S. Cellular (USM), the Samsung Mesmerize was found to infringe on Apple's patent for the front design of the phone. Apple did not accuse the Mesmerize of copying the rear design of the iPhone, though the jury did find the home screen looked too similar to Apple's.


Galaxy S
4 of 8






Payment to Apple: $73,344,668
The back of the iPhone and the back of the Samsung Galaxy S look very similar, right down to the placement of the camera in the top left corner and the brand name at the bottom.
The Galaxy S is one of Samsung's top sellers and was found to have violated all three of Apple's design patents in question during the trial: the front, back and layout of the applications on the screen. Both the 3G and 4G versions of the device were found to have copied the iPhone.


Vibrant
5 of 8






Payment to Apple: $89,673,957
The Vibrant -- a variant of the Galaxy S that was made for T-Mobile -- was also found to violate all three iPhone design patents. The phone was launched two years ago.


Captivate
6 of 8






Payment to Apple: $80,840,162
Another variant of the Galaxy S, Apple only accused the Captivate of violating a patent for its app layout. The Captivate was released on AT&T in 2010.


Continuum
7 of 8






Payment to Apple: $16,399,117
This Galaxy S variant had two screens on the front -- the smaller of which displayed texts, tweets, and other small bits of information. The Continuum was found to infringe on Apple's patent for its app layout, but it was not questioned for any other design patent violations.


Epic 4G
8 of 8






Payment to Apple: $130,180,894
This Galaxy S version had a slide-out keyboard and was carried on Sprint (S, Fortune 500). Like the other Galaxy S phones, it was found to infringe on Apple's app layout patent.


http://money.cnn.com/gallery/technology/2012/08/28/samsung-apple-phones/jump.html