Apple Accuses Samsung of Misleading Jury - Analyst Blog


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During the course of the recent trial on patent dispute settlement between tech giants Apple ( AAPL ) and Samsung, the former accused the latter of misleading the jury. According to Apple, Samsung's claim that three of the five patents under dispute were not being currently used by Apple was baseless, and not justified by facts and figures.

Moreover, Apple supported its accusation by claiming that it was making good usage of the three aforesaid patents and asked the U.S. District judge, Lucy Koh who is overseeing the trial, to provide it with an opportunity to show the same to Samsung.

The trial, as scheduled, commenced from Mar 31, 2014 in San Jose, CA. The jury comprised 10 people, none of them related to the technology or software space.

The trial began with Apple accusing Samsung of violating five of its mobile software patents including the swipe to unlock feature for logging into the iPhone and iPad. It claimed damages to the extent of $2 billion for the same. Apple claimed that 10 Samsung products including Galaxy S3 have violated these five patents.

Samsung retaliated by claiming that Apple's accusations were false and intended to reduce competition in the industry. Samsung went on to say that Apple's primary intention was to target Google 's ( GOOG ) Android OS which happens to be the operating system for all Samsung mobile phones.

Moreover, Samsung also made fresh accusations against Apple claiming that nine of its products including the likes of iPhone 5 had infringed two of Samsung's patents and claimed damages to the extent of $7 million for the same.

This trial is the second clash between the two tech giants within a span of two years. Previously, in 2012, Apple emerged victorious in a trial where it accused Samsung of violating its copyrights and received damages amounting to $1 billion for the same.

In their continuous endeavor to dominate the worldwide smartphone market, both Samsung and Apple have spent millions of dollars in legal fees since Apple initiated the fight in 2011, accusing each other of copying their respective products.

Per Bloomberg, the smartphone market was valued at $338.2 billion last year. Samsung accounted for 31% of industry revenue compared with 15% for Apple. The latter's market share reduced on account of the touch-screen factor becoming a common feature in low-cost alternatives by Samsung, LG Electronics Inc. and Lenovo Group Ltd.

Apple's loyal customer base, international expansion and a solid cash position are expected to aid long-term growth. However, increasing competition from the likes of Google, Hewlett-Packard ( HPQ ) and Microsoft ( MSFT ) in most of its major product segments, higher operating expenses and increasing legal complexities are headwinds.

Currently, Apple has a Zacks Rank #3 (Hold).

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This article appears in: Investing , Business , Stocks
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