Tuesday, October 11, 2016

Battle of the Tech Giants--Apple vs. Samsung!

Apple, Samsung to Argue Patent Case Before Supreme Court

For Samsung, the hits just keep on coming! Samsung is not having a good month with the Samsung Note 7 disaster and now with their five-year-old battle with Apple over patent infringements, Samsung has their hands full with bad publicity and loss of billions of dollars. 
The Wall Street Journal details this court battle in their October 11, 2016 article, “Apple, Samsung to Argue Patent Case Before Supreme Court”.  The international legal environment is front and center in this case for the South Korean technology giant.  In 2012, after deliberating for just over 21 hours, the jury in the Apple v. Samsung trial awarded Apple $1.05 billion in damages after Samsung was found to have willfully infringed five of seven Apple patents.  The court battle now is about how much Samsung owes Apple over those iPhone patents.
Apple’s iPhone design patents were integral to the case against Samsung, who was ultimately ordered to pay approximately $930 million in damages. However, the Supreme Court is providing Samsung the chance to challenge a portion of the award--$399 million; the company’s total profits on 11 smartphone models that the jury found to encroach on Apple’s design.
Samsung argues that an all-profits rule is unfair with regards to multicomponent products like smartphones. The company argues that consumers purchased its cellular phones for other features that had nothing to do with the patents in question.
The Supreme Court ruling should be decided by June 2017, and could have a long-term impact for designers and product manufacturers going forward because the Supreme Court, if it agrees with Samsung, could limit the penalties for infringing on a patented design. 
It will be interesting to learn the outcome of the ruling as this will have far reaching consequences for international marketers. Afterall, if the Supreme Court does not rule in its favor, Samsung said, "an infringer of a patented cupholder design must pay its entire profits on a car."   What do you think?
Blog posted by: Ally M.

1 comment:

  1. This is a common characteristic of an open market system where manufactures can make products that they wish with minimal government interference. By making a similar product to the Apple's product Samsung has violated the issues of patenting. The ruling of the supreme court will be very important as it will set a precedent in the future court cases.

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