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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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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.


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