A landmark ruling by a US court has seen electronics giant Apple hailed as victors in its ‘patent war’ with Samsung. The net result of the judgment means more than $12 billion has been wiped from the value of the latter’s shares, as world markets react to the news.
A patent victory
In one of the most closely observed patent cases in recent years, the jury at the federal court in San Jose returned a verdict that Samsung were guilty of infringing on six Apple patents and ordered them to pay $1.05bn in damages. Friday’s ruling has had a heavy impact on shares in Samsung, with prices crashing to 1.173m won ($1,000), before climbing fractionally to 1.180m won at the close.
Designs on the future
Some predictions suggest the decision will bolster Apple’s market share and lead to the US giant’s dominance of the burgeoning mobile computing field across the board. However, analysts are also speculating that Samsung and other mobile phone designers, mobile advertising agencies and consumers using the Android platform – Google’s answer to the iPhone’s native software — could benefit from an increased willingness to carry on promoting innovation without resorting to blatant copies of existing technologies. Speaking about the case, Tim Bajarin, president of Creative Strategies Inc argued that “Samsung is already on path to not copy Apple in the future and will try to create a different level of distinctiveness in future products” – all of which will suit mobile advertising strategists looking for distinctive ways to position Samsung’s mobile phone advertising in the aftermath of the court’s decision.
The last word
That being the case, there appears to be an acceptance that some short-term pain is inevitable. Technology analysts predict that Samsung will suffer a decline in earnings equivalent to 4 per cent; and there could be further implications, as Apple intend to pursue an injunction that would prevent the sale of all mobiles deemed to infringe their intellectual property, leaving their South Korean rivals forced to withdraw handsets from the market. The two companies are due to lock horns again on 20 September, with Samsung promising that Apple has not had the “final word” in this case.