According to a report from Morgan Stanley, Apple Inc. (NASDAQ:AAPL)’s latest win against Samsung, over the patents battle, will help the iPhone 5 to command more clout when it is released. The legal win will certainly force other smartphone makers to re-consider their software and design features in current or upcoming smartphones. The report says “Apple’s iPhone gained roughly 2 points of market share on average over the past two years yet our current above consensus estimates assume just a 30 bps iPhone share gain in CY2013 – potentially conservative in light of Friday’s judgment.”
Compared to nearly $120 billion worth of cash and investments it has on its balance sheet, the $1.05 billion in damages awarded to the iPhone maker is relatively insignificant. But the real win from the judgment will be that “smartphone vendors experience lengthened product cycles and are forced to alter their software and hardware to ensure unique designs relative to Apple products.”
The jury’s verdict found Samsung in violation of six out of the seven patent claims by Apple.
1) Patent ‘318 covering bounce back scrolling.
2) Patent‘915 covering single finger scroll and pinch to zoom navigation.
3) Patent ‘163 covering tap to zoom.
4) Patent D’677 covering the design of the front of the iPhone.
5) Patent D’087 covering the design of the back of the iPhone.
6) Patent D’305 covering the iPhone home screen.
The jurors did not include the patent claim on the iPad, patent D’087.
Both the companies involved commented on the judgment. Apple said, the court sent a “loud and clear message that stealing isn’t right.”
Samsung stated, “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.”
This was not the only judgment in favor of Apple Inc. (NASDAQ:AAPL) that day, as the U.S. International Trade Commission gave Apple a clean slate in a patent infringement complaint filed by Motorola Mobility Holdings Inc (NYSE:MMI), which stated that iPhone maker violated the two patents owned by a Google Inc (NASDAQ:GOOG) subsidiary. Meanwhile, in another judgment, a South Korean court ruled in favor of Samsung in a related patent infringement case, ordering damages of 40 million and banning sale of iPhone 3S, iPhone 4, and iPad 1 and 2 in the country.
What could be even worse for Samsung, is an injunction on its devices infringing on Apple’s patents, for which a hearing is scheduled on September 20. Samsung is also expected to appeal the jury’s verdict.