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Sunday 26 August 2012

Apple's $1 billion verdict

San Jose: Apple Inc scored a sweeping legal victory over Samsung on Friday as a US jury found the Korean company had copied critical features of the hugely popular iPhone and iPad and awarded the US company $1.051 billion in damages. Here is all that you need to know:

The issue: Apple Inc. claimed Samsung Electronics Co.'s smartphones and computer tablets "slavishly copied" the iPhones and iPads. Samsung countered with its own claims that Apple used its wireless technology without proper compensation.

The verdict: A nine-person jury unanimously agreed with Apple and ordered Samsung to pay $1 billion. Most of the damages were tied to Samsung's smartphones. It rejected Samsung's counterclaims.

The fallout: The award represents about 1.5 per cent of Samsung's annual revenues. Analysts said the embarrassment of the verdict is a bigger blow for Samsung than the financial setback. Still, the question remains whether Samsung and other Apple competitors will have to redesign their smartphones to avoid infringing Apple's patents. Most analysts agree the verdict sends a threatening message to device makers like Samsung who use Google's Android operating system.

What's next: Samsung is asking the trial judge to toss out the jury's verdict. If that fails, the South Korean technology giant says it will appeal all the way to the US Supreme Court. For its part, Apple will ask the judge to triple the damages award to $3 billion since the jury found Samsung "willfully" infringed its patents. Apple will also seek to have several of Samsung's smartphone's removed from the US market. The judge set a Sept. 20 hearing and will decide these and other issues afterward.

Other litigation: The two bitter rivals are tied up in the courts of nine other countries. Before the verdict was rendered in San Jose on Friday, a South Korean court issued a split decision and ordered both companies to pay the other nominal damages.

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