Device operating systems

Jury: Apple Guilty, But Samsung Much Guiltier

After just 21 hours in deliberation, a federal jury has ruled that Samsung Corp. is guilty of infringing on a number of Apple Inc. (Nasdaq: AAPL)'s core patents, although it ruled in the South Korean company's favor on a few patents as well.

The verdict was announced Friday evening in the San Jose, Calif., courtroom where the two companies have been warring it out over intellectual property since June 30. The jury's 20-page verdict indicted a good portion of Samsung's mobile portfolio, including the Galaxy Tab, Captivate, Continuum, Droid Charge, Exhibit 4G, Galaxy Ace, Prevail, Galaxy S II, Gem, Indulge, Infuse 4G, Nexus S 4G, Replenish and Vibrant for infringing on Apple patents related to design and function. Notably, the Note and Samsung Galaxy S III were launched after the lawsuits began and were therefore excluded.

The jury found that:
  • All of Apple's design and utility patents in question were valid
  • Apple did not infringe on any Samsung utility patents
  • Samsung infringed on Apple's patents for "bounce-back" scrolling, pinch-and-zoom navigation (on all but three devices) and tap-to-zoom (on all but six devices)
  • Samsung "monopolized" market related to the UMTS standard, violating antitrust law

The jury ruled that Samsung owes Apple more than $1 billion in damages, but it also decided that some of Samsung's patent infringement was willful, meaning that damages could be even higher.

The jury did rule in Samsung's favor on a few of the patents in question but said that no damages were owed Apple.

Why this matters
Today's verdict will have significant negative implications for Samsung but also the entire Android ecosystem. Fallout from the trial is still unfolding, so we'll update as we learn more.

For more
AllThingsD has attended the trial and provided the play-by-play here since the beginning, and CNET live-blogged the verdict reading and analysis here.

— Sarah Reedy, Senior Reporter, Light Reading Mobile

joset01 12/5/2012 | 5:22:49 PM
re: Jury: Apple Guilty, But Samsung Much Guiltier

Meanwile Apple is up over 2% at $677.29!

joset01 12/5/2012 | 5:22:49 PM
re: Jury: Apple Guilty, But Samsung Much Guiltier

Samsung shares are down 7% in Seoul today.

krishanguru143 12/5/2012 | 5:22:48 PM
re: Jury: Apple Guilty, But Samsung Much Guiltier

Apple is playing a very dangerous game here.  Look at how many lawsuits Apple has been involved in relating to mobile devices.  Apple has used IP of others and didn’t pay for it until the other company sued Apple and then Apple claims FRAND and tries to skirt out of paying damages for willful infringement.  What I expect to see for 5G and beyond, FRAND will be dead.  You will have the “established” players each with core IP patents to the standard and they will make sure that they are not covered under FRAND.  When Apple comes along to use them they will easily be able to get the infringing Apple devices blocked for import and willful damages owed.  When Apple asks to license the IP, they will either be told NO or very large sums of money per device will need to be paid; the former preventing the devices from being sold and the latter making them either very expensive or very low to no profit margins on them.  Either way you put it, not a good position for Apple.  Why will the other companies do this?  Simple, Apple has no issue using what was created by others but they don’t want to license the IP they have.  So the rest of the industry might just play the game that Apple is.  What about the existing players that also need to cross license?  Simple, that still happens, it is just that Apple is odd man out.  It would be pretty hard for Apple to try to circumvent the IP without infringing.  Apple also risks alienating themselves with the carriers.  Eventually the actions of Apple will catch up to them and they are not going to like it at all.

shygye75 12/5/2012 | 5:22:47 PM
re: Jury: Apple Guilty, But Samsung Much Guiltier

Anytime lawyers take control of a process, the outcome is less than favorable all around. The grab for patents has been under way for some time, and this finding will only accelerate that process -- with plenty more litigtion to come. I agree that Apple may come to regret this "victory."

krishanguru143 12/5/2012 | 5:22:46 PM
re: Jury: Apple Guilty, But Samsung Much Guiltier

I can see my “opinion” isn’t very favorable.  The fact is, it is correct.  Apple refuses to license their IP and has played this game for years.  FairPlay anyone?  How about locking their phone to their store and not allowing anyone else in the walled garden?  When it comes to GSM and 3G patents, they had to be sued before they paid royalties.  Apple loves to yell FRAND on essential patents for mobile connectivity.  Apple views their patents as that they are the only ones that can use them.  Why wouldn’t other companies start to play the same game, a game Apple has no IP in?  When they get shutout what will Apple do?  They can’t go to court, the verdict is already known.  They won’t be able to license it either.  They are stuck on the sidelines, can’t sell anything and any R&D on new mobility products would be a waste of money.  Apple would be at the mercy of the big players and I can’t see them even wanting to license anything to Apple.  Why license it when you can just keep a competitor out completely?

Why should Apple get to ride on the coattails of the innovation of others all while Apple not sharing the anything that they have?

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