Intellectual property is defined as a work or invention that is the result of creativity, such as a document or a design, to which one has rights and for which one may apply for a patent/copyright/trademark. Apple has succeeded in winning a lawsuit against Samsung. This patent war between the two leading smart phone companies, ended up in Samsung having to pay apple more than $1bn in damages. This is a result of Samsung having supposedly infringed some of the iPhone and iPad maker’s patents. This case wanted eight of Samsungs smart phones to be banned from the market. Some intellectual rights violated include the bounce back feature of the Apple icons, as well as the zoom in and out features. On top of this, Apple has also accused Samsung of making similar shaped phones, with curved edges. On the other hand, Samsung had also asked for Apple to pay them $422 in damages, but received no pay. Apples aim in this whole lawsuit is to ban Samsung phones with similar Apple features. In my opinion, Samsung has done nothing wrong and they should not pay a price for slight similarities with other products. After all, there are similar aspects in all phones.
Apple is being immature and looking for a way to make Samsung products less liked, in order for Apple to have less competition in the future. The features that Apple is accusing Samsung of infringing are extremely ridiculous, such as the same shape with round edges. Almost all the phones in the world have such a feature. The effect on both companies is slightly unbalanced. This amount to be paid by Samsung is too minor to affect the company, but this case has cost Samsung some problems. Samsung shares have risen by 3%, as well as having $12bn deducted from its market value. Also, only 8 of the 152 Samsung models in the U.S will be put to a halt, slightly impacting Samsung sales negatively. But Samsung will still have some of its famous phones, such as the Galaxy S3, available in the U.S market. Many of that might be banned are from the S2 series, which have already been in the market for 1.8 years. On the other hand, Apple has gained the $1.05bn in this patent war.
In addition, Some Samsung products will no longer be sold in the U.S, creating a market gap for Apple to fill. Apple has basically reduced its competition in the U.S, and made competitors think twice about copying its devices. Other Smartphone companies have both gained and not gained as a result from this lawsuit. The banning of some Samsung products creates a gap for them to fill. They could do this by introducing new technology. On the other hand, some companies may need to redesign some of their unrevealed products so that they have no similarities with Apple products, such as the removal of round edges. This could lead to a brutal lawsuit against them in concern with intellectual property. This lawsuit in Apples favor, could force other electronic companies including Samsung to redesign their current and future products for the market, to have no similarities to Apple products. This will reduce the risk of any brutal lawsuits with Apple. In the Smartphone market, most phones have similarities with one another.
Samsung isn’t the only company to introduce a Smartphone with round corners. But why out of all the competitors, has Apple chosen Samsung to file a lawsuit against? Firstly, Apple has sued Samsung all over the world, in Australia, Germany and the UK. Its main problem seems to have originated in Australia where some Apple products were banned due to Samsung. Apple seems to be getting back at Samsung in order to show dominance. Other then both these companies being competitors, Apple sees Samsung as a threat due to its fast gain in market share. Its sudden introduction of android technology is seen by Apple as a threat in the mid and long term. In addition, the superior product and competitive pricing, have contributed to Apples decision in trying to eliminate Samsung. Apple might have also seen a slow increase in Samsungs market share in the U.S. Samsungs steady increase of market share, would takeover Apple in the long-term, and so by filing such a lawsuit, Apple would put a halt to this.
Mysteriously, the question of ‘Is it possible for Apple and Samsung to work hand in hand?’ arises. To begin with, these two companies have been enemies for a long period of time. Apple has always been looking for ways to trap Samsung, and Samsung has been trying to create better technology then Apple. These two companies, especially Apple seem to have extreme hatred going on between them. It can be seen that they closely watch each other’s steps looking for gaps and mistakes to complain about. These two companies are some of the top Smartphone companies, contributing in fierce competition, each hurrying to bring out the latest technology. In addition, Apple has filed another lawsuit after the current one, showing a fierce battle. This could conclude that there is no way that these two companies can be seen working together, as both of them want to be winners. But if these two companies were to walk together hand in hand, one of them would have to give in to the other. As Apple has won the patent lawsuit, Samsung could not only pay the damages caused, but they could bring in a settlement of shared profits.
This is where Samsung would still be allowed to sell its technology, and Apple would own the intellectual property rights. Samsung could either pay a monthly fee to Apple for using the patent, or Apple would receive a certain percentage of profit from Samsung sales. This process would be extremely hard to follow, but both companies would gain. However, Apple wants its technology to stand out from the rest, so it is very difficult to see this happening, as both the companies would not lower their barriers to one another. Stakeholders will be affected by this decision. Firstly, consumers globally would now begin to distinguish between the two company smart phones and make judgments in favor of both sides. The main affect would be in the U.S. Consumers will be limited fewer choices of Smartphone’s, also the lack of some Samsung products could lead to potentially higher prices, especially on Apples products. In relation to the customers who already have some of the banned Samsung products, there is nothing that can be done as their smart phones have been bought before the results of the lawsuit. For consumers who need the banned Samsung products, they could buy the technology form outside the U.S and bring it back in.
The government could face more smuggling issue, as smugglers will bring in the now to be highly prized Samsung technology for secret sale in the U.S. Another stakeholder to be affected is Google. Apple has shown no mercy on Samsung, and will do so to Google. The android technology created by Google could also face patent discrimination from Apple. There are some slight similarities in the software in the two companies Smartphone, and in Samsungs case, Google is responsible. To conclude, in this statement by Samsung, it was said: “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 everyday by Samsung and other companies.” This not only shows that Samsung is the winner out of this struggle, but this shows maturity, compared to the childish characteristics of Apple.
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