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Nov 16, 2013

Apple v. Samsung – Enemies or “Frenemies”



It’s a rather busy week for mobile’s two biggest competitors.  Apple and Samsung have been battling since April 2011, when Apple accused Samsung of infringing on several of its mobile device patents.  Those patents covered thirteen products and included features such as the “bounce back” effect when scrolling to the bottom of a page, the physical design of the phone, and the different one-finger and two-finger touch features.  In August 2012 a jury awarded Apple $1 billion in damages, but Judge Lucy Koh of the U.S. District Court for the Northern District of California found that the number had been miscalculated and reduced the amount to $600 million.

Based on Koh’s discretion, a six-day trial began this past Tuesday to determine if $600 million damage figure is a fair.  During opening statements Apple determined $380 million was appropriate, while Samsung asserted that $52 million would be sufficient since the infringed patents didn’t affect consumer mobile device selection.  Apple’s calculation could be based on their lost profits resulting from Samsung’s sales.  On the other hand, Samsung may be required to pay royalties on each patent infringing device it has sold.  The jury’s decision should come by next week.
Despite Apple having emerged victorious this time, its legal battle with Samsung is set to continue in March 2014, with Judge Koh determining whether Samsung infringed on eight Apple patents in their Galaxy S III design.   Though it may appear that these lawsuits are Apple’s response to Samsung having taken the lead in market share, it could be that the two companies aren’t actually enemies after all.  Perhaps, the more these two keep their names in the news, the more they are able to remain leaders in the smartphone industry and beat out smaller competitors like Blackberry and Lenovo.  Apple and Samsung may relish the competitive edge that sparks innovation and motivates each company to develop the latest piece of technology to win over consumers.  Indeed, its the perfect case of friends who are enemies – “frenemies.”

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