A U.S. jury's conclusion on Friday, Aug. 24, that Samsung ripped off the innovative technology Apple used to create its iPhone and iPad, marks a resounding victory for Apple, but it may have far wider consequences. According to analysts, the ruling could also result in fewer smartphone options for consumers, and raises a big red flag to other companies manufacturing similar devices.
Following the jury decision on Friday analysts worldwide started to debate whether the verdict that Samsung copied Apple technology would help Apple dominate the U.S. smartphone market and bury its Android rivals, or lead to an even more tangled and complex legal battle over smartphone technology.
Many analysts believe the jury decision foreshadows tough times ahead for competitors who, like Samsung, use Google's popular Android operating system to power their devices. In addition, a defeat on the Android-based market would also deal a big blow to Google itself. "I am sure this is going to put a damper on Android's growth," said New York-Based Isi Group analyst Brian Marshall, according to AFP. "It hurts the franchise."
After a long legal battle between the two tech giants, the jury found that some of Samsung's devices illegally copied features and designs exclusive to Apple's iPhone and iPad. The California lawsuit is just one of nine similar actions in a global dispute between the two leading smartphone makers.
Some experts believe the jury's decision might not be final just yet, and Samsung had vowed to appeal the verdict all the way to the U.S. Supreme Court, claiming that Apple's patents for such "obvious" things were wrongly granted. A hearing is set for Sept. 20.
The jury verdict on Friday was narrowed down to Samsung only. The South Korean company sold more than 22 million smartphones and tablets using Apple's technology, claims the iMaker. The patented technology Samsung allegedly ripped off includes the ability to tap to zoom in on text.
Most other Apple competitors, however, have used Google's Android OS to produce similar technology, and according to analysts, the verdict could considerably limit the features offered on all the other non-Apple phones. "The other makers are now scrambling" to find alternatives, said tech evangelist Rob Enderle, as cited by the AFP.
Meanwhile, Korea Investment analyst Seo Won-seok said the popular features and functions the jury found Samsung stole from Apple will be hard to replicate. In this situation, companies could either seek to pay licensing fees for access to Apple's technology, or develop smarter technology for obtaining similar features without violating the patents. The second option would involve costs that consumers would likely have to support.
Two dozen Samsung devices reportedly infringe Apple's patents, and the Cupertino, California tech giant is now seeking to ban those devices from the U.S. market. Most of those infringing devices are "legacy" products with virtually no new sales in the States, but Apple lawyers also plan to ask the judge to triple the damage award to $3 billion since the jury found Samsung has "willfully" copied Apple's patents. Apple filed its patent infringement lawsuit against Samsung in April 2011, hiring the nation's top lawyers to demand $2.5 billion.
According to Samsung, the court decision stifled creativity and has wider implications for the entire industry. "Today's verdict should not be viewed as a win for Apple, but as a loss for the American consumer," the company said in a statement. "It will lead to fewer choices, less innovation, and potentially higher prices."
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