Counterintuitive: Did Samsung emerge a winner?
gigaom.com
gigaom.com
So, based on the trial outcome:
1.) Apple won, because they established the validity of their patents and that Samsung was guilty of willful infringement of many of them.
2.) Samsung won, because the damages aren't so severe to have made their strategy of ape'ing the iPhone a bad decision, and now they get to be mentioned in the same conversations as the iPhone.
3.) "Companies that innovate" won, because the jury has reaffirmed the patent system to protect companies from being ripped off.
4.) "The technology industry" won, because now mobile phone manufacturers will be forced to differentiate their products, hopefully leading to better designs.
5.) Apple lost, because in spite of the ruling, they've pissed off the nerd community by behaving like the 500-pound gorilla that they've become, instead of the scrappy underdog people want to root for.
6.) Samsung lost, because they have to pay out a pretty sizable amount of money, and are now going to be referred to as "that company who copied the iPhone".
7.) Google lost, because this will cause problems for other Android manufacturers, and many consider this case to be a proxy war between Apple and Google.
8.) The industry in general lost, because patents are fundamentally icky, and this case reaffirms the strong-arm strategy that companies (Apple in particular) have been refining to artificially hamstring their competition.
9.) The justice system lost, because mere mortals aren't possibly intelligent enough to understand a patent lawsuit, because if they were, obviously they wouldn't think patents could ever be valid.
10.) Lawyers won, because everyone involved got a massive payday, and there'll be a lengthy appeals process.
Did I miss anyone?
Thanks media, your insightful commentary on this complicated issue has been super valuable!
When an industry expands rapidly, any company that enters and does a decent job will be an absolute winner. But, there will always be relative winners and losers over both the short and long term.
But it's important to remember first that Samsung is a massive, massive company. They are the largest smartphone manufacturer in the world, and made $6 billion in profit last quarter. It will take them two weeks to pay off the damages from the lawsuit.
Second, it's important to remember that Samsung deliberately and shamelessly copied Apple's products, and they have a reputation of doing just that to their competitors in the mobile industry. They were warned by Apple and by Google to stop what they were doing, and they ignored those warnings. That's how we got to this point.
Third, it's important to remember that Samsung is a terrible software company. Companies like Palm, RIM, Microsoft, and Apple have made real and important innovations and contributions that have moved the state of the art forward and have inspired countless new innovations. What the hell has Samsung done? I've been following the mobile software industry for over 10 years, and all Samsung is known for is selling other people's work and piggy-backing on others' brands.
Finally, I believe Samsung's inevitable fall from the top of the smartphone industry will come not as a result of this lawsuit but will instead be driven by the carriers, who still control most of the cards and have a long history of moving against manufacturers that become too big and assert too much power. Samsung will be replaced by another Android manufacturer, or perhaps even Nokia.
Maybe I'm missing something here, but if Samsung really copied from Apple, I'd have expected a lawsuit about copyright infringement, not about patents.
> Trade dress protection is intended to protect consumers from
> packaging or appearance of products that are designed to
> imitate other products; to prevent a consumer from buying
> one product under the belief that it is another.
In some cases Samsung's lawyers's couldn't tell Samsung devices apart from Apple's devices[1]. [0] http://en.wikipedia.org/wiki/Trade_dress
[1] http://variado.net/mobil/?p=27157Do you seriously believe that anyone actually bought a Galaxy Tab by mistake, thinking it was an iPad?
Copyright would apply if they had stolen or copied source code or original artwork and were using it verbatim.
You missed the part of the verdict where it says Google stock Android phone is infringing too. Also if Samsung is one of the less innovative and influential tech company, how come every iPhone is built with many Samsung parts including the retina screens?
Furthermore, Samsung had every opportunity to stop this trial from getting as far as it did. They obviously didn't give a damn about the potential repercussions for other Android manufacturers or Android users.
>> or perhaps even Nokia.
I don't see a future for Nokia (or RIM) other than being acquired. They're both bleeding money and have no real rockstar products any more, but have big, big warchests of patents.
Nokia? The one that's focussing on Microsoft as an OS? Huh.
Seems way more likely that Motorola would be the more likely alternative to a Samsung successor seeing as they are owned by Google.
The interesting question is how far Apple will go attacking core Android with their "obvious" patents.
The only problem is if Apple can use this to get features removed from stock Android. However, Google was able to work around the universal search issue by modifying the code, and they replaced the bounceback behavior in scrolling with the "glow" thing, which (IMO) works just as well. So hopefully Google will be able to keep Android free of any patent issues (or maybe use the Motorola Mobility patents to force Apple into a cross-licensing deal).
So in the end, this may result in less meddling with the Android codebase by OEMs and carriers, something that all consumers will benefit from.
Samsung's lineup of phones is poised to overtake the iPhone in sales, even if their appeal goes nowhere. Samsung's growth over the years has been amazing, and now that they can take advantage of the same economies of scale that Apple has, they should be able to come close to the same profit margins that Apple enjoys. They should also be able to take advantage of Google's R&D for the Android software (which no longer needs customization) while manufacturing its own hardware, thus spending much less money than Apple to develop each device.
2) Even better, Samsung now has a chance to create a tv commercial to frame the court ruling as a win:
"As you know, we recently sued Apple to protect American freedom of innovation. An independent jury found that Apple and Samsung devices are very similar in looks and features at a fraction of the price. So why not make your next device a Samsung device? Samsung."
If you are a tech-geek, you'll know the difference, you'll have your own opinion on the case and the OS and hardware that you prefer.
If anything, they will have just seen headlines saying that they owe Apple a billion dollars for copying them, so if anything they will go from not really thinking much about phones, to thinking that Samsung copy Apple.
Not exactly a win.
Why is it that it's really hard for some to understand that people sometimes--maybe even most of the time--choose an Android phone because they prefer an Android phone? With some iPhone models selling at $49.99 and with iPhone being on nearly all of the major carriers, people aren't "settling" for an Android phone.
A windfall profits tax on transferred IP would be interesting, so IV and the like couldn't suck all the value out of the tech industry.
The losers might be those living in a saturated market governed by absurd patents and an uncertain legal process where billions can depend on the uninformed opinion of a small group of people who can choose to ignore the advice of a judge.
My point exactly.
Imagine if some up-and-coming auto maker started making cars that look exactly like (insert your favorite luxury brand here) - except it doesn't go as fast, the steering sucks, the upholstery has gaps, etc. And then imagine a bunch of consumers not only buying these cars, but naively insisting their car is actually better than that luxury brand they've never owned and ridiculing the owners of the luxury brand for being gullible fanbois for overpaying for "premium" quality that they don't (and probably can't) appreciate.
It's not that I'm a snob (I drive a rusty Subaru if you care), but I am glad we live in a place where good design and good engineering is valued and where companies unwilling to invest in design and R&D cannot simply steal the hard work of others.
Unless, of course, the only reason to own it is status.
But I'd hesitate to equate a Samsung smart phone with a knock off Louis Vitton handbag, for example.
I don't really understand the undying adoration of Apple. The tech industry has always been a fast moving, ultra-competitive industry where blatant ripping off of features is expected. If my competitor has a new feature that people like, you can bet the farm that everyone else will implement that same thing and try to leap frog the others in the process.
It could lead the manufacturer of the original product to end support for it, or to even go out of business.