Apple-Samsung Patent Case Ends with $1B Verdict

A U.S. jury has found Samsung Electronics Co. guilty of infringing on several patents owned by Apple.

As a result of the judgment, Samsung must pay Apple $1.05 billion in compensation. However, the decision's impact will go far beyond that financial penalty.

Experts believe it will, in fact, lead to lengthy product development delays that could weaken Samsung's revenue picture for years to come.

The jury in the case took just twenty-two hours to deliberate before announcing its decision on Friday, August 24. Jury members found Samsung had infringed on Apple patents, and also rejected claims by Samsung that the reverse was true.

"Products in Pipeline" Facing Redesign

Samsung now seems forced to change designs for many of its mobile products, a process that will take considerable time and money. (Source: techradar.com)

"The verdict is worse for Samsung than what many had anticipated, and it will have to change some products in its pipeline," said Chang In Whan, president of KTB Asset Management Co.

"There could be delays in developing and releasing new models, which together with a potential sales ban could weigh on [Samsung's] corporate value." (Source: businessweek.com)

However, the decision also may affect companies other than Samsung. Apple is pursuing a similar patent case against HTC, which produces Android devices very much like those marketed by Samsung.

HTC will "need to look very closely at the patents in question with Apple and see which may be similar to those with the Samsung case," noted intellectual property lawyer, Marcus Clinch.

Apple Seeks Permanent Ban On Offending Products

Even after this decision, Samsung and Apple will continue to battle in court.

The two firms will be back at it again next week, as Apple seeks a permanent ban on Samsung devices covered by last week's decision, including such popular products as the Galaxy Tab 10.1 tablet computer.

However, some analysts doubt the decision will hurt Samsung in the long-term. Villanova University patent law professor Michael Risch thinks it could actually offer Samsung an opportunity to build more innovative devices.

"Samsung has deep pockets and they are going to change some designs up," Risch said. "Not being able to copy may make them do better things than Apple." (Source: businessweek.com)