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Monday, August 27, 2012

Apple Inc. (NASDAQ:AAPL) V Samsung: Point To Point Analysis


For those who want to know what were the issues at stake in the Apple Inc. (NASDAQ:AAPL) Vs Samsung Electronics legal patents battle in a federal court in San Jose, here are the main points:

WHY DID APPLE SUE SAMSUNG: Apple Inc., which makes the iPhones and iPads, sued Samsung in April 2011, claiming that the Korean company had copied the designs of its devices and used its technology to build its Galaxy range of smartphones. Samsung countersued claiming that Apple had violated the patent for its wireless technologies without payment of royalty. Apple sought bout $2.5 billion in damages from Samsung, which in turn demanded slightly ore tan $400 million from Apple.

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WHAT DID THE JURY SAY: The nine-member jury, which had heard the evidence from both the companies for three weeks, delivered its verdict on Friday. It agreed with Apple about the violations by Samsung, upheld all its patents under dispute as valid and ordered Samsung to pay $1 billion in damages to Apple. Samsung's claims were rejected.

WHAT IS THE IMPACT OF THE VERDICT: More than the financial damages, Samsung stands to lose a lot from it, especially in terms of its reputation and its future in the United States. If the court follows up the verdict with a ban on the sales of its products in the U.S., it is a huge blow for the company.
Following this verdict the question arises whether other phone makers that run on Android will have to redesign their phones in order to avoid the fate of Samsung. Apple had sued companies such as HTC, LG and Motorola Mobility for patent infringements.

WHAT IS NEXT ON THE AGENDA: The court has set Sep. 20as the next date for a hearing when presiding Judge Lucy Koh will decide on the sales ban on Samsung's Galaxy phones. Samsung intends asking Koh to reverse the jury verdict or failing that, to appeal against the verdict.

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