A US court has ordered Korean electronics firm Samsung to pay Apple $1.05bn (£665) in damages for infringing Apple's intellectual property. The decision stunned the courtroom as the jury threw out every single one of Samsung's complaints and sided with the California tech giant on each of their claims after just three days of deliberation.
The two firms account for more than half of the global smartphone and tablet market and Apple is now thought to be in the process of trying to ban 8 smartphones. It's a significant ruling for Apple which has been going toe-to-toe with Samsung across the world's courts trying to ban the Korean firm's smartphones and tablets.
In recent weeks, a court in South Korea rule that both companies had been guilty of copying, while a British court threw out claims made by Apple that Samsung had copied its designs. But it's thought that this decision could shape the way patent licences are handled in the future and Samsung said it's a "a loss for the American consumer”.
“It will lead to fewer choices, less innovation, and potentially higher prices,” the South Korean firm said.
The statement added that it was “unfortunate that patent law can be manipulated to give one company a monopoly over rectangles with rounded corners”.
Apple, however, said it applauded the court “for finding Samsung’s behaviour wilful and for sending a loud and clear message that stealing isn’t right”. Apple said it intended to seek sales injunctions at a follow-up hearing on 20 September.
What’s next?
Apple may also seek to use this ruling to block other devices powered by Google’s Android software that it believes replicate elements of its user-interface, including current models by Samsung as well as other firms.
Google itself issued the following statement to the media today:
“The court of appeals will review both infringement and the validity of the patent claims. Most of these don’t relate to the core Android operating system, and several are being re-examined by the US Patent Office. The mobile industry is moving fast and all players — including newcomers — are building upon ideas that have been around for decades. We work with our partners to give consumers innovative and affordable products, and we don’t want anything to limit that.”
Many believe that that the decision is harsh on Samsung, but not that unexpected – as the court is a right on the door-step of Silicon valley.
This case is unique and seemingly allows protection of basic elements of design, process and functionality that would be, to any normal person, considered obvious. Patent laws were created to protect genuine innovations and ideas – not whether something is a rectangle, or whether something has a line of icons and round edges.
For example, when Apple launches a television are they going to use the same spirit of not copying certain elements? Surely their TV will be a triangle, or maybe a hexagonal? it’s not surprising that other countries courts haven’t agreed with the Californian courts’ decision.
Apple would argue that they are encouraging rivals to innovate, rather than emulate. But if emulation had been banned we’d all be suffering from a million different designs for the plug, we would all drive Fords and only listen to the Walkmans.
It seems Apple is out to stop standardisation – but in the real world we all benefit from standardisation; it drives down prices, increases consumer choice and improves competition.
Whatever happens this isn’t the last time you’ll hear about Apple and Samsung in a court room. Samsung will of course appeal and will likely want its arguments heard somewhere that isn’t influenced by its proximity to Silicon Valley, with the Supreme court already being talked of. It could take months, maybe even years before we know the true extent of this decision on Samsung and Android – but this is merely the start and certainly not the end.
