Print 63 comment(s) - last by nocturne_81.. on Sep 21 at 7:28 PM

  (Source: New Line Cinema)
Why not just ask Samsung to give up all its money?

Samsung Electronics Comp., Ltd. (KSC:005930) is still reeling from a massive $1.05B USD jury verdict loss to Apple, Inc. (AAPL) in Californian federal court.  Now Apple has added insult to injury, asking a judge to triple the damages.  If the judge accepts Samsung would now owe Apple over $3B USD.

I. Apple Looks to Triple Its Court Payday

The request comes due to federal rules regarding "willful" infringement.  In such cases, the plaintiff is allowed to request that a judge multiply the damages as a punishment to the infringer.  As the jury ruled that Samsung not only infringed, but also did so "willfully", Apple was eligible to make such a request.

A report in the Korea Times quotes an unnamed "senior legal executive" as saying, "By using that condition, Apple has decided to request the judge to order Samsung to pay more than $3 billion in the hearing on the San Jose verdict on Sept. 21 in California.  The decision means Apple want to quickly address the harm that Samsung’s infringing products are said to be causing. As has been the case throughout this trial, Apple is pressing its full advantage over the jurors’ decision."

Another legal source was quoted as saying that Apple is simply trying to levy more severe provisions against Samsung in an effort to kick it out of the market.  That source argues no amount of damages will satisfy Apple until it can kick its rival out.

Red card
Sources say Apple won't be satisfied until it kicks Samsung out of the market. [Image Source: AFP]

Comments the source, "Apple lawyers still believe Samsung should pull its popular Galaxy line of devices including smartphones and tablets from the United States and leave the market to proprietary handsets from Apple and Microsoft."

II. Kicking Out a Bigger Competitor

Currently, Samsung outsells Apple's smartphones 2-to-1 globally.  If Apple can indeed "kick Samsung out" of the global market (or at least the lucrative U.S. market), it could go on to dominate the smartphone market.

Samsung, however, is bracing itself for a tough fight to try to prevent that from happening.  It's countering Apple's request to Judge Lucy Koh, the presiding judge in the case, with a counter-request to toss parts of the jury verdict, reducing the damages.  If it cannot succeed, it will drag the case into the U.S. Federal Appeals Courts.

Samsung smartphones
Some say despite the pending bans, Samsung may be able to stay ahead of Apple.
[Image Source: Reuters]

Judge Koh this week upheld a ban on Samsung's Galaxy Tab 10.1 in the U.S.

The South Korean phone maker is also hedging its bets, increasing its Windows Phone 8 offerings.  Jumping ship from Google Inc.'s (GOOG) Android operating system to Microsoft Corp.'s (MSFT) Windows Phone 8 could offer an easy escape route for Samsung, as Apple presumably can't sue Windows Phone makers due to its cross-licensing pact with Microsoft.

Source: The Korea Times

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Pyrrhic victory, if any
By nikon133 on 9/19/2012 5:22:58 PM , Rating: 2
The best Apple can hope for is to push Samsung away from Android, into... Microsoft hands.

I think we are already seeing results, both Samsung and HTC dedicating stronger to WP8 platform than they did before with WP7/7.5

And with MS behind them, they will be untouchable.

I have no doubts that Samsung can repeat their Android success with WP8, as long as their effort is not half-hearted. And if Apple does manage to make Samsung's marriage to Android unbearable, I have no problem seeing Samsung even more aggressive with WP8, if for no other reasons, then for pure defiance.

I'm wondering if Apple thought this out at all. Everyone allied with MS, with MS having the potential to be the most complete ecosystem, with traditionally strong ties with governments, enterprises and small/medium businesses, as well as home users... is that the future they see preferable to having Android to divide competition? Or are they delusional that much to expect that Samsung and likes will simply give up on smartphones and tablets, and lock themselves into their old business spheres, with not much space to grow any more?

Personally, I wouldn't be surprised that Apple is sharing opinion of their most loyal fans (one that every Apple forum is soaked with), that Windows 8 is total failure and everything related - desktop, tablet, phone - is destined to suffer the most embarrassing commercial death. But having actually been using Windows 8 on my office PC for the last two weeks, in a real world scenario, I sincerely think they are in for a good surprise...

RE: Pyrrhic victory, if any
By t_sandman on 9/19/2012 6:47:08 PM , Rating: 1
I don't think Apple was set on pushing Samsung from Android. I believe Apple decided that Samsung had features that was too close in comparison to the iPhone (not making a judgement, just telling you my impression of Apples thought process).

There are other Android handset manufacturers that are different enough from iOS that Apple has left them alone.

Eventually Samsung and other Android phone manufacturers will have to migrate to WP8. Googlerolla will eventually start to compete for that multi-billion dollar industry and I am sure they don't want to have to compete with 10 different manufacturers using the Google OS. So I think Samsung will have to eventually either move to WP8 exclusively or come up with an alternative OS to remain viable in the smartphone industry.

WP8 is so different than iOS that I am sure Apple is just fine with customers making that choice. Android on the ohter hand, since manufacturers overlay the Android OS with exclusive manufacture software/interface, sometimes the lines can be blurred when trying to distinguish Android interface from Apple (Not a judgement, just saying what I belive Apple is thinking).

I do envision that Microsoft/(Phone Manufacturers), Googlerolla, and Apple will eventually be the only smartphone choices.

For those of you who may have been around during the 70's and early 80's, for computers we had Apple, IBM, Microsoft/PCs, Commodore/Amiga.

Commodore was and is the number one best selling computer of all time. Estimates of over 20 million computers sold within 10 year time span. Shit load of market share for a computer. Too bad they are out of business. Software companies were able to create software without needing a license. Software companies flooded the market with crap software, and eventually Commodore ultimately died a slow painful death. (Other reasons for the death but story still relevant).

IBM is out of PC businees. Only two left are companies that licesned there OS and was able to have some control of third pary applications/hardware. You have seen video card manufacturers go through the same death pattern.

I envision the smartphone industry going down this same path. Not today or tomorrow but maybe next 5-6 years.

RE: Pyrrhic victory, if any
By michael2k on 9/19/2012 7:52:44 PM , Rating: 2
You seem to forget the point/part where Microsoft licensed Apple's patents (the same ones that they offered to, and was refused by, Samsung in 2010).

So Microsoft is already untouchable and Samsung, in moving to Microsoft, will have given Microsoft, and then Apple, the appropriate license fees.

Meaning Apple gets license fees from Samsung no matter how this turns out.

RE: Pyrrhic victory, if any
By nikon133 on 9/19/2012 10:15:36 PM , Rating: 2
It is my understanding that MS and Apple have some kind of cross-licensing agreement, so I'm not sure if any of them is paying anything to the other.

Samsung, of course, will have to pay MS for WP8 licensing. Don't know if that is less than they might end up paying to Apple, but considering that Apple is also gunning for banning number of Samsung products BESIDE taking fat amount of $ from Samsung, I have a feel Samsung would be on less shaky ground with MS, with expenses much easier to project.

RE: Pyrrhic victory, if any
By michael2k on 9/19/2012 11:40:15 PM , Rating: 2
Apple isn't giving these licenses to MS for free. For all we know the terms are for Office on the iPad. The point is that Apple's win isn't Pyhrric unless WP8 outsells Apple. That seems unlikely.

RE: Pyrrhic victory, if any
By nikon133 on 9/20/2012 12:58:17 AM , Rating: 2
Of course not - Apple is giving them for rights to use MS fat portfolio of patents. That is why it is called cross-licensing. We give you our patents, you give us yours. That is my understanding. If you have any specific info about payments from both sides, please share.

Re the other part - I think that WP is developing much faster than Android did at the same relative point in their timeline. What was achieved by Android and OEMs is not a coincidence - it already happened with Windows and OEMs (vs. everyone else). If OEM really stand behind WP platform, I believe they can repeat - and better - Android success.

RE: Pyrrhic victory, if any
By michael2k on 9/20/2012 4:56:22 AM , Rating: 2
You're claiming there's a cross licensing agreement, I'm merely pointing out that they have a license agreement and have used that as justification of asking Samsung $30 for the entire portfolio.

"Mac OS X is like living in a farmhouse in the country with no locks, and Windows is living in a house with bars on the windows in the bad part of town." -- Charlie Miller

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