Samsung to Pay $1.05 Billion for Copying Apple

Apple Samsung CaseA 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, Wikipedia, GSMArena, Phonearena and CNET


  • Aik to chori ooper se seena zori Shame on Samsung!

  • Mannan

    A bunch of Peanuts for a company like SamsunG

    • angel

      agree wt u …people r nw addictd to samsung who care about apple?

    • Shahid Saleem

      EXACTLY. This should have been highlighted in the article.

      In 2011, Samsung made $247.5 BILLION. That means about $675 MILLION A DAY on average.

      So the money they have to pay Apple is equivalent to JUST TWO DAYS OF REVENUE for Samsung.

      That is how much they make.

      • I guess its not about money its about repute.

        • Shahid Saleem

          Ha ha and think about the reputation: “court decides samsung is just like apple, only cheaper!”

          $1 billion for advertising like that to the world…

        • SFA

          Agree these stupid idiots dont know a thing. Its all about repute. Even pornstars have a lot of money but they have no respect! Just an analogy for making you people understand.

  • $1B bucks pretty hefty outcome for Tim Cook after completing 1 year on CEO post.

  • jammer

    “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.”

    Dear writer please comment on this video …

    http://youtu.be/wFeC25BM9E0

    • Nice video. Instead of inventing things, what Apple has done is to re-invent them and make them better. But it copied other’s ideas too. What Samsung has done is that it copied just too much and the ‘re-inventing factor’ was kept quite low while Apple did both at the same time.

    • iOSstar

      I didn’t watch the complete video but the apple Samsung war was related to infringement of patents. Apple product did not infringed any of patent, in-short apple did not use anything out of their property or properties of others.

      • iOSstar

        Sorry ” Apple products did not infringe any of patents of any other companies, no matter how and what someone has already done, no one could at-least dare to challenge apple’s product but on the other hand apple can challenge some-one’s product which actually built on original patents of apple, like multi-touch, pinch to zoom. Or tell me any product earlier from 2007 which had pinch to zoom or multi-touch feature.

  • GadgetGuru

    Samsung has blatantly copied Apple… not only in design but as a company and as business leader.

    Although inspiration is a positive thing… Samsung in 2009 was 25% the company it is today. The company became 4 times the size just by copying Apple in every aspect.

    While other companies like Nokia and RIM suffered due to following originality and innovation.

  • Have a look at this article Guru then you would get understand “Design is not invention”

    http://www.forbes.com/sites/haydnshaughnessy/2012/08/26/why-the-apple-vs-samsung-verdict-is-a-big-mistake/

    By the way how can a company suffered due to inventions? The problem with Nokia and RIM are they are not bringing the new stuff as compare to Android and iOS

    • iOSstar

      This is totally a bullshit the original case was not only regarding product design but on 7 different patents and only one of which was related to design.

  • pyari

    Well, nobody can deny to one thing that really there’d be something fishy in Samsung since jury itself has given the orders of paying for breaching copyright acts after finding their guiltiness ’cause I don’t think some bunch of stupid people have access to JURY who can give orders without following the real evidence..
    On the other side, I really liked that “Design is not invention” thing ’cause as admin mentioned, obviously, both the companies are not going to finish this matter on this decision only, which will go ultimaly affecting the upcoming products of both brands :¥

  • Usman Nazir

    what about China Mobiles……copy all Nokia mobile phones

    • aryzha

      Good point, but I don’t think China mobiles are as big of a player in the market. With all its popularity, Samsung was probably a much, much bigger threat to Apple.

  • well , i highly regards comments from Samsung and felt that where there is strict competition end user will be benefited. There must be someone who competes Apple which results in decrease of prices.
    By this case it is clear that no one will copy Apple and end benefit will go to Apple revenues as Apple will win the monopoly race….
    Point to check the jury location m, if it is american it will definately support american company and samsung is korean one. A big slash on Samsung luck… bad luck samsung…

  • JZEEK

    Doesn’t Matter Samsung is almost all over the world apple will only dominate in america but what about the rest of the world Samsung will catch the fire in that market and can also come back with new ideas in america…

  • Osama saif

    So now US users will have only option of APPLE.But its not end here.As all of know how samsung mobiles are making progress day by day I am pretty sure to say that one samsung will dominate the whole world market.

  • I am not a big fan of patent law which restricts the technology in fewer hands & makes others to pay for it, that’s probably a way of making money for & to loose money for others. For example 2 guys are trying to make an airplane & both succeed, they guy whose final product is little poorer has registered it to patent first & now the second guy with a better airplane has to ask permission from first one before launching his better product to the world. In this case world has lost a better engineer with better product & ended-up with a poor engineer & poor product.

    Apple being a USA company has been given advantage of US laws, only to protect USA’s financial interests over Samsung which is Korean Based.

    • Shahid Saleem

      Well if you look at the history, that sort of thing happened a lot in the telegraph & telephone days in the 1800s. Sometimes the second person to register the patent was only a few hours late.

      The situation sucks but what can you do?

  • yasir ilyas

    Who wins this battle. I don’t know. I’m not a Samsung and apple’s fan. But one thing I know! i’ll never purchase a single item of Apple.

  • Badar

    I truly agree with Yasir Imran. US is protecting their industry by collapsing others like this. Infact Chinese products are having same issues in US.

  • Lawyer

    Legally speaking the order of the court is correct but its business impacts are not favourable for the consumers around the world. Samsung has very right to continue their products across globe. Good Luck Samsung.

  • Shehzor

    There’s alot of differences in both….. Apple just get jealous from Samsung…. Samsung is just great then Apple….. Greedy Apple…..

  • Vicky

    Always hated Apple and always will!
    Screw Apple!

  • salman

    All Samsung lovers!!this is fact Samsung has some of its feature copied from iPhone….well if you look closely to the interface, design some icons you will surely find out that….

  • waqar
    • Furqan

      Not Possible: There exists something called Math!!

      As per my calculations, they will need 4630 big 18 Wheelers trucks to carry the load of 5Cents Coins equal to $1.05 Billion.

      MATH:

      Weight of 5 Cents Coin = 5Grams

      5 Cents in $1 = 20 5Cents

      Weight of 5 Cents Coins equal to $1 = 100Grams

      $ 1.05B = $ 1,050,000,000

      Weight of 5 Cents Coins equal to $ 1.05B = 105,000,000,000Grams

      Weight of 5 Cents Coins equal to $1.05B in KG = 105,000,000KG

      Maximum Weight laden by 18 Wheeler in US = 22680KG

      Number of Trucks required to laden 105,000,000 KG or 5Cents Coins equal to $ 1.05B = 4,630 Trucks

      Just saying.. U know!!

    • Its fake. They did not pay in 5 cent coins and can never pay. It was a joke originated from some website and got viral.

      Also, 5 cent coins cannot be treated legal tender for such a big transaction. Coins have limitations of acceptability. Notes are usual, common.

  • Mansoor jadoon

    samsung <3 <3 <3
    APPLE ? GET SOME AIR DUDES :P
    dun knw any facts abt apple vs samsung
    but wud simply say
    SAMSUNG ROCKS !!!!

  • GadgetGuru

    Take away Android from Samsung and it becomes a company that makes bricks.

    Samsung makes its phones in the same low quality factories which Qmobile and other china based vendors work with. The Galaxy Y series is made in even worst production housed.

    Apple = Innovation leader that owns the technology and invented a new way of mobility/entertainment.

    Samsung = Qmobile = China brands = Fake Nokia Copy

    Samsung + Android + Copy interface = Apple

    • Shahid Saleem

      Don’t you even know that Samsung supplies parts for every iphone device??? Astonishing the lack of knowledge here.

      Where are iphones made? Oh yes, I forgot, China…

      • GadgetGuru

        Samsung is a fabricator of technology owned by others. It has one of the largest facilities in the world for OEM fabrication. The three main costs modules in a phone are Processor, Ram and LED. In iPhone, none of the three components are Samsung owned.

        The processor is A5, designed and owned by Apple, The LED tech again is proprietary Apple technology which is an extension of the open alliance SLCD. While the RAM is also open alliance. Apple is part of the open alliance including others like intel, but Samsung is not. Hence when Samsung makes RAM and LEDs (AMOLED) it pays royalty to the open alliances.

        For processors, Apple has two more supplire since six months… one of them is TSMC. For SLCD it has shifted some 30% to Sharp and LG and slowly more will be moved from Samsung.

        Lastly, i would like to add that the iPhone 5 will have a new display technology where three layers that make up the screen are combined into a single technology. This tech is also owned by Apple and it was so worried about Samsung stealing it that this new display tech is being manufactured exclusively at Sharp facitlies which are 30% owned by Apple.

        • Shahid Saleem

          So much misinformation. Wow. Where do you get your news from? Urdu afternoon newspapers?

          — Apple is part of the open alliance including others like intel, but Samsung is not.

          Which magical open alliance is this? Samsung produces over 90% of the world’s AMOLED displays and owns most of the AMOLED patents. Samsung owns S-LCD corporation completely as of last year. Lastly, Samsung has been #1 or #2 in producing memory chips since 2002, worldwide. Are you seriously saying that there is some mysterious alliance that the #2 player for 10 years has not been able to join?

          — The processor is A5, designed and owned by Apple,

          So what? Samsung still makes it. you know, that’s what “parts” means. And no, Samsung does not have to pay Apple to make the A5 it is the other way around.

          – the LED tech again is proprietary Apple technology which is an extension of the open alliance SLCD.

          The same open alliance that Samsung owns 100% of?

          Regardless of what Apple will do IN THE FUTURE, my statement is correct: every iPhone and iPod has Samsung hardware in it.

  • Gags

    Apple won, consumers lost :x

    • impartiall

      I agree ….this is monoply! and US is just supporting its home company.