backtop


Print 70 comment(s) - last by Iketh.. on Aug 22 at 11:35 AM

A trial could deeply hurt the pair's relationship, regardless of the outcome

Samsung Electronics Comp., Ltd.'s (KSC:005930) and Apple, Inc. (AAPL) will have one final talk before they take their case before a federal court jury in the United States, in a war that could limit U.S. consumer selection or grant artificial dominance in the smartphone market.

I. A Bitter Battle

As the world's largest display manufacturer and a top maker of DRAM, NAND, and mobile CPUs, Samsung is vitally important to Apple.  Samsung makes the system-on-a-chip (SoC) brains inside every iPad and iPhone.  

Yet in 2010, growing competition between the pair in the tablet and smartphone space prompted late Apple CEO Steve Jobs to accuse Samsung of "slavishly copying" his company's devices, filing suit in U.S. District Court for the Northern District of California.  Samsung hit back shortly thereafter, and the war was on.

The court battle has been fierce.  

Judge Koh
Judge Koh has admonished both sides in the case, at times. [Image Source: IB Times]

Judge Lucy Koh has admonished Apple's lawyers for belligerent filings, while earlier chastising Samsung from destroying potential evidence.  

The case currently dangles in the realm of subjectivity.  

While emails and internal documents demonstrate that Samsung was indeed looking to imitate traits of Apple's highly successful star tablet/smartphone, Apple was shown to borrow ideas for those devices from Samsung, Sony Corp. (TYO:6758), and other players who predated its market entry.

There are some visual similarities between Samsung's original Galaxy S smartphone and the iPhone -- likewise for iPad and Galaxy Tab.  There are also noticeable differences.  

At the end of the day much of Apple's design claims boil down to its assertion that it "owns" exclusive rights to produce rectangular tablets/smartphones with rounded edges.  Apple claims that some tablets/smartphones may be sufficiently different from the iPad/iPhone to escape design infringement, but its design experts have struggled to quantify discrete details of how Samsung and others can escape design infringement.

II. One Last Effort at Peace

Amidst this backdrop Samsung CEO Kwon Oh-hyun will call Apple CEO Tim Cook, in a final chance at settlement before the trial heads to the jury for a verdict.

Tim Cook and Kwon Oh-hyun
Apple CEO Tim Cook (left) and Samsung CEO Kwon Oh-hyun (right) will have one last attempt to make peace. [Image Source: Reuters (left); Bug.hr (right)]

At stake in the battle is the $219.1B (valuation by Bloomberg) smartphone market.  Combined with the tablet sector, these two markets could easily eclipse a trillion dollars in the next several years.

Apple would love to gain a monopoly in the smartphone market, to complement its dominant position in the tablet space.  But it has seemed sluggish in advancing the experience of its handheld devices opting for a slower pace of changes than Android.  As a result Android devices today have many capabilities and hardware advantages that their Apple counterparts do not -- such as larger screens, LTE modems, and near field communications.  Those factors have given Android phonemakers approximately 68 percent of the global market at last count [source].

To counteract that, it’s taken up the sword.  Apple is looking for $2.5B-$2.75B USD in infringement damages, as well as multiple sales bans on Samsung product -- a crippling outcome.  It is still pursuing similar terms in its case against HTC Corp. (TPE:2498), as well.  In the U.S. only Motorola Mobility -- a Google Inc. (GOOG) subsidiary is free from the wrath of Apple, after the pairs legal strife was twice dismissed "with prejudice" by a federal judge.

III. Samsung Presents Quandary for War-maker Apple 

The Samsung case is made unique by two factors.

First, Apple and Samsung are expected to do $12B USD in business in 2012, up 50 percent from the $8B USD in 2011.  Without Samsung's chips Apple could not make its products.  Fortunately, regardless of the lawsuit outcome, Samsung is contractually obligated to provide those chips to its archrival.  But the danger for Apple comes for the future.

If it hurts Samsung too bad, Samsung could retaliate by refusing to renew chip production contracts.  And given the level of design expertise employed by Samsung in making the chips -- particularly the SoC -- that could amount to almost a redesign for Apple of its smartphone chips.  Further, quality would likely suffer -- initial trial runs with third-party fabs reportedly did not go well for Apple; it was hard for them to match savvy Samsung's level of chip-making prowess.

Samsung iPhone 4S
Without Samsung, the iPhone could get a lot dumber. [Image Source: Snapguide]

Second, Samsung is the largest of the Android phonemakers, and the only one to approach Apple in profitability.  However, the promise of killing Android's superstar offers powerful motivation in the other direction -- for war.

It was Judge Koh who suggested the second peacemaking effort, with Samsung and later Apple agreeing.  The Judge called herself "pathologically optimistic" in her hope that this second round of intimate talks between company chiefs would produce a different outcome.

If it does not, the jury should be in for an arduous trial, as both companies -- after initial reductions -- argued that they were unable to further reduce their claims or exhibits.  At least one member of the jury has family members who reportedly hold a significant number of shares of Apple stock, something Judge Koh said was okay, as the individual themselves would not directly profit off of damaging Samsung and boosting Apple.  Still it's hard to imagine that couldn't introduce a certain level of bias in that member's mind.

Source: Bloomberg



Comments     Threshold


This article is over a month old, voting and posting comments is disabled

By Cheesew1z69 on 8/21/2012 1:32:31 PM , Rating: 0
No, they didn't... once again to shut down your moron theory.

Oh, the irony...

quote:
Apple Slapped with Multitouch Patent Lawsuit posted by Thom Holwerda on Wed 31st Mar 2010 21:55 UTC IconI guess this is what some people would call "karma". Apple may shout off the rooftops that it invented multitouch, and that anyone else using it is clearly stealing it from them - but another company has taken offence to that, and has slapped the Cupertino giant with a patent infringement suit over multitouch. The company in question is Taiwanese chipmaker Elan Microelectronics, and they are suing Apple over patent no. 5,825,352, filed in February 1996, and granted in October 1998. The patent calls for a "method and apparatus for detecting an operative coupling between one or more fingers or other appropriate objects and a touch pad includes processes for detection of multiple maxima with intermediate minima in appropriate sequences to emulate the operations of cursor control and button actuations in a pointing and control device". In other words, multitouch. In 1996. More than ten years before Apple released the iPhone. "Multi-finger applications are becoming popular in smartphone and computer applications, particularly with support for multi-finger gestures integrated into the new Microsoft Windows 7 operating system," the company states, "The 352 patent is a fundamental patent to the detection of multi-fingers that allows for any subsequent multi-finger applications to be implemented." This is not some obscure patent that surfaced only recently. In 2008, Elan Microelectronics sued Synaptics over this very same patent, and the courts found that indeed, Synaptics and its products were in violation of this patent. In the end, the two companies settled the matter. Elan Microelectronics has filed a complaint with the US International Trade Commission, seeking a ban on imports of several Apple products (MacBook, iPhone, iPod Touch, Magic Mouse), including the iPad once it's released. "We have taken the step of filing the ITC complaint as a continuation of our efforts to enforce our patent rights against Apple's ongoing infringement. A proceeding in the ITC offers a quick and effective way for Elan to enforce its patent," the company said in a statement. Seeing Apple's and its followers' arrogance over multitouch, it's hard not to snicker a bit over this one. Wie kaatst kan de bal verwachten.

More irony...

quote:
Pixar John Lasseter, an employee at the Graphics Group, created 3-D short animation films to help sell their products . These short films gained so much attention that Disney and the Graphics Group (renamed Pixar) teamed up to release "Toy Story" in 1995. The film was a success and proved to cost less and take less time than producing 2-D animated films. Pixar's subsequent film releases, and those of other animation studios, proved that 3-D would be the future of animation.

Wait, more irony?

quote:
In 2000, the touchscreen Ericsson R380 Smartphone was released.[18] It was the first device to use an open operating system, the Symbian OS.[19] It was the first device marketed as a 'smartphone'.[20] It combined the functions of a mobile phone and a personal digital assistant (PDA).[21] In December 1999 the magazine Popular Science called the Ericsson R380 Smartphone one of the most important advances in science and technology.[22] It was groundbreaking in being as small and light as a normal mobile phone.[23] In 2002 it was followed up by P800.[24]

And yet, MORE....

quote:
The trackball, a related pointing device, was invented by Tom Cranston, Fred Longstaff and Kenyon Taylor working on the Royal Canadian Navy's DATAR project in 1952. It used a standard Canadian five-pin bowling ball. It was not patented, as it was a secret military project.[4] Independently, Douglas Engelbart at the Stanford Research Institute (now SRI International) invented the first mouse prototype in 1963, with the assistance of his colleague Bill English.[5] They christened the device the mouse as early models had a cord attached to the rear part of the device looking like a tail and generally resembling the common mouse.[6] Engelbart never received any royalties for it, as his patent ran out before it became widely used in personal computers.[7] The invention of the mouse was just a small part of Engelbart's much larger project, aimed at augmenting human intellect via the Augmentation Research Center.[8]

Oh, this to fun!

quote:
1936 Konrad Zuse - Z1 Computer First freely programmable computer.

http://inventors.about.com/library/blcoindex.htm

Tablets? Think again!

quote:
http://en.wikipedia.org/wiki/History_of_tablet_com...

I think that's enough history lesson for today....


"You can bet that Sony built a long-term business plan about being successful in Japan and that business plan is crumbling." -- Peter Moore, 24 hours before his Microsoft resignation














botimage
Copyright 2014 DailyTech LLC. - RSS Feed | Advertise | About Us | Ethics | FAQ | Terms, Conditions & Privacy Information | Kristopher Kubicki