- Jan 5, 2011
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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:
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?
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