Rain Makers

Samsung to Pay Apple $1B in Patent Suit Decision

August 27, 2012 , 0 Frank Gurnee

Apple has won a huge decision in the Apple Vs. Samsung Patent infringement case. A jury on Friday decided that Samsung had violated a multitude of patents that Apple held. Upon delivering the verdict Apple was awarded $1.05B however the judge sent the jurors back to deliberate on two counts that had discrepancies. The jury considered these discrepancies and came back with a $220M reduction making the payout $1.04B.

Samsung was also looking for infringements on its utility patents, in which the jury found no fault by Apple, and awarded no money to Samsung. The ruling was a huge blow to Samsung, and potentially a huge blow to the mobile device community. Many fear that other companies will follow suit and begin filing lawsuits based around patents they own. As well the entire case has made some question the ability of a predominately non-technical jury to decide on such highly technical matters.

With news of the decision, Samsung’s stock fell 7% in trading on Monday. This is the largest drop the company has seen in a single day and would seem to be early reaction to the expected payout. There is no doubt at this point that Samsung will appeal the decision and the saga will continue. At this point it is hard to say how long this will continue but with the numbers as big as they are, an impending continued fight could only be expected.

The interesting part of the entire case is the question as to how software in devices will be developed and improved in the future. If it is not allowed to compare features, or for consumers to expect specific functionality across platforms without infringing on another’s design or function elements, then how will innovation in technology continue? Maybe it will create more innovation? With companies having to reinvent the experience in fear of litigation, there will be clear lines drawn between devices, and may require distinct differences between solutions.

The real downfall to all of this is the consumer is sure to be impacted. Most likely this will come in more expensive devices. The reason for this will either be the fact that manufacturers will have to shell out big money in licensing costs, or spend big money on research and development. Either way this will surely be felt in the consumer’s pocket.