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Thread: Apple v Samsung Epilogue; Real Impact of Case $12B ; Verdict Likely to be Overturned

  1. Editor in Chief
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    #1

    Apple v Samsung Epilogue; Real Impact of Case $12B ; Verdict Likely to be Overturned


    We have an Epilogue to the Apple versus Samsung case. This culling of info includes some very interesting "side-plot" details, one of which may just segue into a sequel in which Samsung could still turn things around. Here's the skinny, with our usual breakdown summary style,

    First, the real impact of this case for Samsung was not the $1 Billion dollar judgement, nor the possibility of "Trebled Damages" jumping that verdict up to $3 Billion (because of willful infringement). You might initially think that the real impact of this case is that 8 Samsung devices are likely to be banned by the U.S. court. This includes devices like the Galaxy S II, which is still a hot seller in the U.S. However, those won't really be a big deal to Samsung either. In fact, Samsung has already made a statement that they are committed to their consumers in the U.S. and they will develop workaround solutions to all the devices they still sell here. (Source: BGR)

    The real impact of this case has already been felt by Samsung, and it was simply a ripple effect caused by investors getting spooked by the results of the case. After the verdict, a pretty sizable chunk of investors dumped 7.5% off of Samsung's stock price. This amounted to shaving off $12 Billion dollars of Samsung's market worth. Ouch! And, this was all while Apple's stocks soared on the news, adding $15 Billion in value to the Cupertino clan. Yes, my friends, this may have been Apple's real goal all along. Now, in the long run, this will correct itself and Samsung will be back to a more reasonable valuation. Lest you forget, Samsung does make other things besides mobile devices, and they are quite successful at it too. Regardless, it's amazing to see how companies make war on one another and what the real aftermath is all about.

    The second interesting footnote to this case is that there is a high probability the verdict in this case will be overturned on appeal. One of our members, armeddroid, found a great story over on Gizmodo that sheds new light on the case. The story points out that Samsung's next move in the appeals process will likely be to have the case completely overturned because the jury didn't perform its duties properly. The article is very lengthy, but is definitely worth a read when you get the chance. I will try to summarize briefly to give you the gist of it. Basically, the jury likely rushed their verdict, they had a ton of inconsistencies in their damages award as well as their general findings, and they didn't really follow the jury instructions properly. (Obviously the article, linked above, shares much greater detail and is very eye opening.)

    The bottom line is that if the jury had really done their job properly, it would have been impossible for them to decide the case in three days. In the Gizmodo article cited above, several patent law experts indicate that it would have taken them three days just to go over the jury instructions properly. There were 700 questions!

    Additionally, Bloomberg scored an interview with the Jury foreman in the case, and many of his statements were not very encouraging of the way the jury handled the case. (You can find the video here, Bloomberg.) It looks like the jury had already decided the case before deliberations, and intended to punish Samsung with their verdict. It's important to note this, because this is completely contradictory to the jury instructions they were given:

    The amount of those damages must be adequate to compensate the patent holder for the infringement. A damages award should put the patent holder in approximately the financial position it would have been in had the infringement not occurred, but in no event may the damages award be less than a reasonable royalty.
    This will be the main point that will likely get the jury's verdict overturned. Although it seems like a big victory for Apple now, this story is far from over. I wonder what the next chapter in the saga will bring?
    Last edited by dgstorm; 08-28-2012 at 12:30 PM.
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  3. Master Droid
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    #2
    Nice. Hope that happens.
    When I first heard the verdict, I thought to myself..."How long before that ridiculous verdict gets overturned?"
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    #3
    The inconsistencies on the case that the jurors deliberated on is ridiculous.
    Then fined Samsung for devices that didnt even infringe on any of the properties e.g. Galaxy 10.1.
    The GIZMODO articles breaks it down where you wonder what exactly were they jurors doing?

    (Quote) The jury appears to have awarded damages for the Galaxy Tab 10.1 LTE infringing—$219,694 worth—but didn't find that it had actually infringed anything....A similar inconsistency exists for the Intercept, for which they'd awarded Apple over $2 million

    Intercept: "The jury found no direct infringement but did find inducement" for the '915 and '163 utility patents. If a device didn't infringe, it would be rather hard for a company to induce said non-existant infringement
    (Unquote)

  5. Master Droid
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    #4
    I hope it gets overturned as well. I also hope that Apple goes away forever. I like their stuff but this **** is nuts!!

    Im surprised they havent tried to patent matter yet!!

    B
    Last edited by BJPalmer85; 08-28-2012 at 10:34 AM. Reason: i cant spell
    Trying to decide on my next phone. I am torn between the DNA and the SGS3.
  6. Droid Sensei
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    #5
    lol, im not sure if it will be overturned. I am always rooting for samsung but its an uphill climb now. But to be honest, when i heard verdict, i wasnt wooried. Its never really over in these cases. I remember a year or two ago when a company was fined milliuons of dollars by a jury but then afterwords the judge altered the amount becuase it seemed to be to excessive. This case is long from over, i dont feel like its doomsday or anything for samsung but from now on they really have to get lucky and not mess up. Doing those two things will help out the case.
    Turtle bit me.I thought they were slow....they snap so fast. ................. <3
  7. Droid Ninja
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    #6
    The fact is that due to the ruling, Samsung lost 7.5% in investors equaling up to $12 billion? And that is likely to go up until the next hearing.
    That is some serious damage.
    Samsung stated that they were upset even tho they are confident about the next case.
    But until then, what happens?
    They lose money.
    I am glad to see that they didnt get rid of Apple as a customer on the parts they sell to them. 26% of the Iphone is running on Samsung hardware.
    This research about the inconsistencies, i am hoping holds major ground on the next hearing.
  8. Droid Sensei
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    #7
    Gizmoto though, i cant say i appreciate their articles much. They are on the lower end of my news reading todempole. (probably completly at the bottom)

    *while reading this though, they do link groklaw which i find very competent. good stuff.
    Last edited by ilikemoneygreen; 08-28-2012 at 11:09 AM.
    Turtle bit me.I thought they were slow....they snap so fast. ................. <3
  9. Master Droid
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    #8
    With Samsung stock tumbling, it might be a good time to buy. You'd be betting on a successful appeal, but I have to think they would at least get that ridiculous penalty reduced.
    jroc likes this.
  10. Senior Droid
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    #9
    I think its funny that they had "a guy that knew about patents". They already knew the verdict they were going to give from day 1. I say that's not fair at all.
  11. Droid Ninja
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    #10
    They say there's no such thing as bad publicity, and for Samsung that is more than true: https://plus.google.com/114476892281...ts/246srfbqg6G
    jroc likes this.
    What is best in life? "To crush your enemies, to see them driven before you, and to hear the lamentations of their women."
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