Patent Wars: Samsung Strikes at Apple

Apple (NASDAQ:AAPL) scored a major patent victory over Samsung (SSNLF.PK) recently. United States jurors awarded Apple $1.05 billion in damages for Samsung’s “willful infringement” of several patents, such as “pinch to zoom” and the “bounce back” effect. The Korea Times has reported that because the infringement was willful, Apple has the right, and the intention, to seek up to three times that amount. If the company wins, it would be the largest payment for a technology patent dispute ever.

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Reporting on patent warfare is ramping up to be as common as analyzing revenue reports. “Who sued who now?” fatigue is setting in, but the results of intellectual property disputes have significant effects. For example, a $3 billion fine is about 14 percent of Samsung’s total cash, and the lawsuits have already prevented the company from selling its Galaxy 10.1 tablet in the United States.

On the eve of the iPhone 5 release, Samsung has initiated a counter-offensive and added the phone to its existing patent lawsuits. If successful, Samsung could get a sales injunction placed on the new device. This would be a resounding success for Samsung, and by proxy Apple rivals such as Google (NASDAQ:GOOG), despite incurring the ire of Apple and the millions of people slated to purchase the iPhone 5. Apple’s lawsuits have been viewed by some as a proxy stab at the Android platform, which claims 52.2 percent of the mobile market.

Samsung said in a statement, “Apple continues to take aggressive legal measures that will limit market competition. Under these circumstances, we have little choice but to take the steps necessary to protect our innovations and intellectual property rights.”

Samsung remains the world’s largest phone manufacturer with 25.6 percent of the market, although its share decreased slightly between April and July of this year. Apple, the number three producer, saw its shares climb 1.9 percent.

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