Apple Inc. (NASDAQ:AAPL) has less than a 50 percent chance to get a court injunction against the smartphones produced by Samsung Electronics Co., Ltd. (LON:BC94), according to Jefferies, an equity research firm. They make these remarks after conducting a conference call with David Sunshine, a patent lawyer.
Atty. Sunshine also told Jefferies that the Cupertino-based iPhone and iPad maker has a good chance in winning its second patent infringement case against the South Korean electronics company, if it goes to a jury trial. According to him, there is a possibility of global settlement between Apple Inc. (NASDAQ:AAPL) and Samsung as the companies are engaged in a patent fight in courts in several different countries.
Warren Buffett’s 2018 Activist Investment
Most investors are aware of Warren Buffett's most high profile long-term investments. However, there is one long term investment that is often overlooked. Q2 2020 hedge fund letters, conferences and more This is building materials maker USG, which was owned by Berkshire Hathaway for more than 17 years before it was acquired in 2018. If Read More
Jeffries also cited Atty. Sunshine’s opinion that the $1 billion compensation recommended by the jury may decrease, if Presiding Justice Lucy Koh finds inconsistencies in the jury verdict, but the jury’s finding that Samsung willfully infringed its rival’s patent rights will possibly increase the damages by at least 50 percent. Samsung will possibly end up paying more than $1 billion.
Atty. Sunshine explained that Samsung Electronics Co., Ltd. (LON:BC94) might gain some tweaks in the patent case, citing the recent decision of Judge Koh to deny Apple’s request to delay the lifting of the temporary ban on selling Samsung’s Galaxy Tab 10.1, but a complete overturn of the jury’s verdict is impossible.
In addition, it would be difficult for Apple Inc. (NASDAQ:AAPL) to get a permanent injunction against Samsung’s infringinging products. The patent lawyer opined that it would be difficult for Apple to prove that the compensation is not enough for the company to overcome the damages that would be caused by the continuous sale of infringing Samsung products in the United States. Furthermore, Atty. Sunshine believed that the Samsung Galaxy S3 is unlikely to be included in Apple’s case for injunction of infringing products, because it was not included in the first patent case. Apple Inc. (NASDAQ:AAPL) must first file a court request to find the Samsung Galaxy S3 in violation of its patent rights, and an infringement hearing is necessary.
In its report, Jefferies agreed with Atty. Sunshine’s opinion that Apple Inc. (NASDAQ:AAPL) and Samsung will enter a global settlement within the next six to twelve months. Jefferies wrote, “We agree that Samsung will likely settle in the next 6 to 12 months in view of, among other things, the difficulty to Samsung of absorbing further losses, including future finding of willful infringement and enhanced damages. We believe the main thing Apple wants is for Samsung to redesign its products to create more differentiation vs. Apple’s, And despite recent diversification efforts, Samsung Electronics Co., Ltd. (LON:BC94) remains its most consistent supplier.