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Shelly Palmer

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Apple v. Samsung: The Good, The Bad and The Sad

Posted: 08/28/2012 5:27 pm

The first round of the Apple v. Samsung lawsuit is over and Apple has emerged victorious. In case you haven't been following it, Apple sued Samsung for $2.5 billion for infringing on seven of its patents. Samsung countersued for approximately $400 million because it needed to save face. It took the jury less than three days to find in favor of Apple for just over $1 billion in damages and, just to stick it to Samsung, they threw out Samsung's countersuit.

I'm calling this the first round because Samsung will most likely file an appeal. From Samsung's point of view, this is a fight to the death, and Samsung is unlikely to give up any time soon. There are several interesting things going on here, so let's have a look at the good, the bad and the sad.

The Good

Apple's victory is a victory for every inventor and innovator. Patent protection is a very complicated blood sport and, when the system works, it promotes investment and risk taking, and it protects the associated rewards. As a patented inventor, I am thrilled that Apple went after a copycat and successfully defended its intellectual property. While it's true that most patents are only as powerful as the entity that owns them, the jury found that this patent infringement was blatant, if not obvious. If Apple didn't win, it would have been a huge blow to the notion of patent protection.

Several of my learned colleagues have admonished that Apple is a huge company and its overt use of lawsuits as a competitive tool is unwarranted, unsportsmanlike and unnecessary. I disagree. If I were Apple, I would defend my intellectual property to the full extend of the law -- it is the only path that makes sense. This is an important victory for everyone who has ever gone through the remarkably painful process of writing a patent claim. Congratulations to Apple's legal team for a big win!

The Bad

Samsung offers some extraordinary alternatives to iDevices. Most run Google's Android operating system and, at the moment, most of the products (like the Samsung Galaxy S III) are technologically superior (from a features point of view) to their Apple counterparts. There is a very good chance that the judge will rule that Samsung must stop selling some of the products that were the subject of the lawsuit. Two bad things will occur: 1) Samsung engineers will have to scramble to remove the infringing intellectual property, so they won't have time to innovate; and 2) Substandard products from other manufacturers will probably fill the gap.

Don't get me wrong. I applaud Apple's victory, but depending upon how the judge rules, this could be very messy for consumers.

The Sad (If you're not Apple)

The sad news is that every smartphone and tablet that has a full glass screen looks like an iPad or an iPhone. Apple's design patent portfolio is pretty complete and, if your smart device looks like an iDevice, you're going to be in trouble. What's worse is that Apple obviously has defensible patents around finger gestures and Apple is very unlikely to license any of its IP. Why should it?

The fact is that Apple has innovated, pioneered and succeeded where dozens of others have failed. It created the modern concepts of a smartphone and a tablet and has the law on its side. Every consumer electronics company has just been put on notice -- innovate or die! If you don't invent your own, new, unique, patentable smartphone and tablet, Apple will wait until exactly the right moment, sue you, and win.

Actually, I'm not sad about this at all, but I am wondering... did Samsung lose this case because it created products that were inspired by Apple's? Or did it lose because, during the discovery phase of the trial, Apple was able to show that Samsung executives documented their desire to copy Apple product features?

This may sound like a trivial issue, but it isn't. Steve Jobs allegedly called Android a stolen product -- but this case wasn't against Google. What was stolen? What did Apple products actually inspire? And, what was just the result of a smoking gun? Food for thought as the battle for control of our connected lives continues.

 

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The first round of the Apple v. Samsung lawsuit is over and Apple has emerged victorious. In case you haven't been following it, Apple sued Samsung for $2.5 billion for infringing on seven of its pate...
The first round of the Apple v. Samsung lawsuit is over and Apple has emerged victorious. In case you haven't been following it, Apple sued Samsung for $2.5 billion for infringing on seven of its pate...
 
 
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12:14 AM on 09/20/2012
Apple has won the battle, but not the war. In the long run, it's going to look like an oversized crybaby that whines "infringement" if someone makes a better product. Plus, Apple's constant (ab)use of the justice system is going to bite it in the ass in the long run.

Apple needs to grow up! "Intellectual property" may sound proper and cute, but this is business and business doesn't have room for crybabies. If Apple cannot deal with the competition, it needs to pull its i-toys off the shelves and close up shop.

Samsung may have been wounded; and other smartphone makers might have to take a step back for the moment. However, they'll bounce back.

'Nuff said. Night folks!
06:45 AM on 09/18/2012
I think this is an absolute failer of our justice system. As a owner of a phone repair company I'm intimately familier with I phones and android. They are in separate leages with hardly any resemblance between the 2. Sueing for spell checker and rounded edges? I had these features on my first phone that wasn't a suit cause. Apple began the race by pouring money into RND to make a smart phone that had good support and development community. Android won the race by using linux as a base and inviting millions of developers to work for free making it a desktop and a server in your hands. I phones can't do a tenth of what android can do.

Samsung is not to blame but the people at home who are working for free to give you the beat experience possible. I'm outraged and hope Samsung is able to appeal.

Sent from my Samsung Galaxy Nexus
04:23 PM on 09/05/2012
I'm afraid I don't agree at all. Apple did "innovate" in the sense of combining a bunch of good ideas into a great package, but not all "good ideas" deserve patent protection (and thus a 20 year monopoly). Point-to-zoom, pinch-to-zoom, grid-arranged icon screens, etc. all had prior art which should have rendered them invalid. The court and jury applied a much too restricted version of "prior art"; in fact the jury foreman said that the prior art cited at trial weren't valid replacements because they weren't implemented in objective-c and thus wouldn't run on iOS!
Every market leader has to deal with competing with lower cost knock-offs; this isn't a bad thing its a good thing! Its good for consumers. Giving Apple a 20 year monopoly on normal, intuitive mobile devices interfaces isn't good for anyone but Apple.
03:50 PM on 09/24/2012
I thought the pinch/un-pinch gestures came out of Microsoft. I remember seeing a demo of what became Surface and multi-touch with increasing distance resulted in zoom. Isn't this un-pinch? Did Microsoft sell this to Apple or did they just fail to challenge Apple's use?

As for a patent on the rounded rectangle, remember Larry Proctor, who was issued a patent (subsequently withdrawn) for a yellow bean that has been a Latin American staple crop for centuries?

And as for innovation by amalgamation, when the Swiss Army came up with their eponymous knife, did they earn an exclusive claim on the fork, spoon, corkscrew and toothpick?
12:25 PM on 09/04/2012
I believe that this whole etire lawsuit is to cover up Apple's "Dirty Little Secrets" with someone else's. Apple STOLE the idea for the Macintosh from the Xerox PARC, so what are they whining about? jon8p is right. If we copyrighted everything, mixing blue and yellow to make green WILL be copyrighted. Look out, Capital Hill! I'm going to copyright my name!!
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11:13 AM on 09/07/2012
((Apple STOLE the idea for the Macintosh from the Xerox PARC))

Sorry, I meant to favor you, not flag you.
Even though Apple made a deal to scan Xerox PARC, peaking up under the rug was pretty sneaky. Did Xerox ever sue them?
01:17 AM on 09/04/2012
I think you're reaching with the 'Good'. The patent being enforced is not necessarily a good thing at all - which is why the appeal is so important. Such patents only drive up the cost of competition and assure that there is less competition in the market for the same product. Consider 'one click shopping' that Amazon patented - and now look at the near monopoly Amazon has in online sales. Of course, patents were originally designed to create monopolies but it is being used here for the monopolization not of a product but of an entire market. So, no, this isn't good for innovators. It's good for big corporations that overload the USPTO with patent applications which aren't necessarily innovative.
12:31 AM on 09/01/2012
Apple wins!!! Now Apple go sue LG for copying your captive touch phone LOL
04:51 PM on 08/31/2012
I am going to file a patent for mixing blue and yellow to make green. Watch out, people.
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Dr. R. Keith Sawyer
04:18 PM on 08/31/2012
Apple's patents should be invalidated, I predict Samsung will win on appeal on the grounds that Apple's patents do not meet the "nonobvious" criterion. Allowing such patents to stand is bad for the future of innovation. See my huffpost blog post with more details:
http://www.huffingtonpost.com/dr-r-keith-sawyer/apple-wins-patent-case_b_1834603.html
11:15 AM on 08/31/2012
"As a patented inventor, I am thrilled that Apple went after a copycat and successfully defended its intellectual property"
That reads good and fair. But I dare you to add a 'such as' to that statement with any specific IP being protected in this case:
"As a patented inventor, I am thrilled that Apple went after a copycat and successfully defended its intellectual property, such as designing icons in the shape of rounded rectangles"
Really??!!
Apple's insistence on suing (and worse, refusal to license) minor UI elements that are a logical derivation of progress in hardware technology makes it one of the most anti-competitive abusers of the patent system I have ever seen.
06:49 AM on 08/30/2012
Basically, Frankenstein's created a monster, the monster's gone out, had a kid with some random woman, and Frankenstein's sued the mother for producing the kid from his design.

The first television had competition eventually. The design's already been done, it's a matter of waiting x-amount of time ot be able to legitimately reproduce it. Who copied whom when flatscreen TVs came on the market? Same with the first small mobile phone.

I understand that Apple took time and put effort into a standard touchscreen (touchscreen did, after all, exist pre-iPhone), but if they honestly didn't predict that other manufacturers would start to work on phones to act as rivals or just plain alternatives, they're a bit thick. Samsung's models are far more reliable, and generally superior, to the iPhone. I was one of those who HAD TO HAVE an iPhone once, and when it successfully lost all my messages and contacts, wouldn't backup, restored what it didn't backup, and generally I know I may have had one of a bad batch, but I've had a bad batch of two different iPods too. (Not hating on all their products,my Nano actually does work the way it's supposed to.)

I haven't yet had a problem with any Samsung product I've owned, and although I'd say "national bias" as opposed to infringing on patents (I'm skeptical like that), I say that purely because I honestly thing it's Apple being jealous and vindictive over Samsung's ability to create a better product.
11:50 AM on 08/29/2012
This fallacious notion that Samsung copied anything from the Apple was ridiculous from the start. Certain icon colors and symbols were made to become a standard in the '90s(i.e. green send button with a phone). And, patenting the rectangle?!?

The jury was destined to have it out for Samsung whether it was bias or not. It boils down to lack of technical knowledge and how the evidence was presented. In Software development, the user requirements and the system requirements are two very different descriptions of the same product. Whereas the user requirements are an abstract of main points, the system requirements really go into detail and describe something unique. Since all smartphones and tablets have very similar user requirements, that documentation for Apple devices is probably very similar to many of Samsung's products. Without the technical knowledge to really understand how Samsung DID NOT infringe on Apple's intellectual property, the jury was only REALLY presented with an abstract; It became easy to deceive the jury with something every tech company has come to understand: Apple hit the market first so everything else is considered a copy.

No one should be excited about Apple's win because it does not promote innovation or economic growth, it debilitates it. Anyone supporting Apple's ridiculous claims must really want the market to suck. Anyway, I didn't much like what Mr. Palmer said but, one thing is certain: Apple did win this "round" but the consumer (not Samsung) lost.
11:32 AM on 08/29/2012
I'd love to see where a "Rounded Rectangular device with a touchscreen" is "Innovation" in need of patent protection. Really. These phones have been rectangular from DAY ONE! Apple doesn't innovate, they buy everyone else out and then sue those who don't sell. iPod was not an innovation, the iTunes store was more innovating than that was. The iPhone wasn't an innovation, there were better, stronger, more capable phones already out there, it just synched with the iTunes store. The iPad and its reitterations weren't innovations, they were expensive builds of devices already available but this time they used the iTunes store.

I think a lot of the problem is that people have forgotten what innovation really means. Innovation: Origination: the act or process of inventing or introducing something new. Repackeging cost-effective, already-perfected-by-others tech into a shiney aluminum case and then selling it for beyond-top-dollar is NOT innovation, it's marketting! I'll give Apple that, they're great marketters...
08:23 PM on 08/29/2012
Apple doesn't buy competitors. I follow this stuff closely and can't think of a time they bought someone out like that. Rarely they'll buy a small innovative firm that has a cool core technology they can use in their products (ironically, a firm that fits that profile is FIngerworks, the company that invented and patented most of the touch gestures, which Apple recognized as groundbreaking and bought -- if this stuff couldn't be patented, Apple could have just stolen these inventions from the smart guys at Fingerworks).

In court Apple proved that they spent more than four years developing the iPhone. Along the way this massive investment yielded a ton of innovation and many patented inventions. These patents were reaffirmed by the jury. This isn't about a "Rounded Rectangular device with a touchscreen". That's one small details out of a large number of things that together were copied. Most patented inventions are exactly that. A collection of things already invented, that are brought together and configured in a way that's novel and useful (look at the Cotton Gin -- break it all down enough and there's nothing new there!). For that, we grant the inventor a limited monopoly to the invention. Apple spent the time and money to do that. They met that test. They have the right to exclude others from copying the invention.

Look at smartphones until 2007. They were crappy. No one bought them. Seeing an iPhone, Samsung copied it in just three months.
10:49 AM on 08/29/2012
Let's be honest about it Apple stole the GUI interface from Xerox to begin with years ago. So when it comes to being pure, well you can forget about it. This isn't a win for the protection of intellectual property, this is a major step backward in development. Because of this lawsuit developers will not want to continue in the free spirit they are now. They will be looking over their shoulder at every turn wondering who is going to sue them next. The only that won in this lawsuit was apple and the bs outdated law system.
12:52 AM on 08/29/2012
And who knows how many of the patent's apple pretty much stole, well purchased from the poor sap who really invented them. And now is suing making billions from a patent or patent's they purchased from the original inventors that just needed quick a buck because they were poor. sucks!!!!
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11:32 PM on 08/28/2012
APPLE HAS LOST THE ABILITY TO INNOVATE

Actually what we are seeing is a fully weakened Apple, post Jobs. There has been no real innovations. Apple mainly changes screen resolution, sizes or colors. Even Microsoft is smart enough to know you have to revamp the OS to keep customers interested. Who wants to look at the same thing on their devices for four or five years?  No one, and there is a reason there is 1 million activations per day of Android.  Consumers like variety.  In where they shop, how they shop and what they shop for.

TEAR DOWN ANDROID & COMPETITION

What Apple calls fragmentation--because they can't compete nor come up with a new, totally refreshment of iOS, is flavors for Android users.  Nasa, the US Army, US Open Tennis Championship & the Conventions chose Android so Apple's claims about Android is being debunked. Not secure, riddled with malware and high fragmentation. They have tried everything to discredit android now going after hardware companies who are using it. As for Apple devices,  you could set them all on a table and all you would see is that same severely dated iOS over and over again.

INTERNAL APPLE

Apple's employees are unhappy and morale is down on their sales floors, at the retail level. Foxconn is doing badly because there has been a decline in the want of Apple products. Tech sites and mags are in full hype mode, with a rumor mill, trying to keep declining Apple market share relevant. Some using ridiculous math methods to show increase in sales when basic math tells the real story. The recent trial was Apple having a global meltdown and lashing out at competitors who are competing in the marketplace one Apple once ruled. That day is gone, and they need to produce or accept it.
08:32 PM on 08/29/2012
What exactly are you talking about? Five years ago they completely re-invented the telephone when they created the iPhone (before the iPhone smartphones were unusable junk, and no one was buying them). Then 2 years ago they reinvented the personal computer with the iPad.

Those are the big ones. They've also changed the way millions of people buy music and watch TV. They created a way for hundreds of thousands of small developers to make money from their programming skills by selling their apps in the App Store.

A company like Samsung? No innovation there. They're like the old PC box assemblers. They take hardware components off the shelf and install another company's operating system, slap them together in different ways (which all essentially do the same thing but give the illusion of a lot of choice) and launch "new" products every few weeks.
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10:13 PM on 08/29/2012
Apple is so innovative they need to now invent some new microchip suppliers. They are being blacklisted. They just got turned down for an exclusive contract with another vendor other than Samsung they stated Apple was too much a risk. lol