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Samsung to Pay $1.05 Billion for Copying Apple

A verdict was finally reached last Friday in the Apple VS Samsung case and it is in Apple’s favor. The jury ordered Samsung to pay Apple a whopping $1.05 billion, which is almost half of originally claimed $2.5 billion by Apple.

Following the verdict, Samsung’s shares dropped 7.5 percent causing a loss of $12 billion to the company. While on the other hands, Apple’s share value reached all time high to $675 to make Apple a $633.39 billion company.

After winning in the courts, Apple released a statement:

We are grateful to the jury for their service and for investing the time to listen to our story and we were thrilled to be able to finally tell it. The mountain of evidence presented during the trail showed that Samsung’s copying went far deeper than even we knew.

The lawsuits between Apple and Samsung were about much more than patents or money. They were about values. At Apple, we value originality and innovation and pour our lives into making the best products on earth. We make these products to delight our customers, not for our competitors to flagrantly copy. We applaud the court for finding Samsung’s behavior willful and for sending a loud and clear message that stealing isn’t right.

As expected, Samsung too issued a statement on the topic and showed that it was disappointed:

Today’s verdict should not be viewed as a win for Apple, but as a loss for the American consumer. It will lead to fewer choices, less innovation, and potentially higher prices. It is unfortunate that patent law can be manipulated to give one company a monopoly over rectangles with rounded corners, or technology that is being improved every day by Samsung and other companies.

Consumers have the right to choices, and they know what they are buying when they purchase Samsung products. This is not the final word in this case or in battles being waged in courts and tribunals around the world, some of which have already rejected many of Apple’s claims. Samsung will continue to innovate and offer choices for the consumer.

Google, the company which owns Android too had something to say:

The court of appeals will review both infringement and the validity of the patent claims. Most of these don’t relate to the core Android operating system, and several are being re-examined by the US Patent Office.

The mobile industry is moving fast and all players — including newcomers — are building upon ideas that have been around for decades. We work with our partners to give consumers innovative and affordable products, and we don’t want anything to limit that.

In a way similar to Steve Jobs, Apple CEO Tim Cook sent a memo to Apple employees which was leaked by 9to5Mac:

Today was an important day for Apple and for innovators everywhere. Many of you have been closely following the trial against Samsung in San Jose for the past few weeks. We chose legal action very reluctantly and only after repeatedly asking Samsung to stop copying our work.

For us this lawsuit has always been about something much more important than patents or money. It’s about values. We value originality and innovation and pour our lives into making the best products on earth. And we do this to delight our customers, not for competitors to flagrantly copy. We owe a debt of gratitude to the jury who invested their time in listening to our story. We were thrilled to finally have the opportunity to tell it.

The mountain of evidence presented during the trial showed that Samsung’s copying went far deeper than we knew. The jury has now spoken. We applaud them for finding Samsung’s behavior willful and for sending a loud and clear message that stealing isn’t right. I am very proud of the work that each of you do. Today, values have won and I hope the whole world listens.

Tim

The war isn’t over yet. September 20 is a big day for Samsung as its devices are feared to get banned in USA.

The most notable Samsung devices that were found copying Apple (and are likely to be banned in USA) are:

  • Samsung Galaxy S i9000,
  • Galaxy S 4G,
  • Galaxy S 2,
  • Galaxy Ace,
  • Galaxy Tab,
  • Galaxy Tab 10.1,
  • Galaxy Tab 7.7,
  • Galaxy Nexus,
  • Nexus S
  • and a lot of ‘carrier-special smartphones’ in the US.

So far, the case has brought a lot of ups and downs for both the companies especially the Samsung. Arguably the biggest of such moments were those when the courts ordered the companies to bring internal documents, which was a big blow for Samsung as they had to reveal the information which was never disclosed before.

Documents revealed that Samsung wanted its devices to be more Apple-like and even Google warned them that their devices looked like Apple’s. Also the documents showed that Samsung was releasing a tablet with a very high-resolution display.

The list of things Apple questioned is quite long too. The company questioned the designs, ads, icons, user-interface, animations, controls, chargers and accessories, screen technology and a lot more regarding Samsung’s products.

Apple even said that the boxing of these products and the way of unboxing was similar to that of the Apple products.

During the hearings, the Apple lawyer even took out a Nokia Lumia 900 and a Sony Ericsson Xperia Arc S from his pocket and said that not every phone has to look like an iPhone.

The biggest patent fight in tech history is still going on and we don’t think it will come to an end anytime sooner. But it surely gives the smartphone companies 2 very important lessons: Firstly, companies should be innovative and should not copy other’s designs and ideas and secondly, the companies should stop being greedy and should take steps which are in favor of their customers.

Sources: 9to5Mac, WikipediaGSMArenaPhonearena and CNET

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