Samsung backed by the Android Platform is locked into a fierce Global Patent Battle against Apple spanning from the US, Japan to Korea etc.
The verdict came in worse than expected for Samsung. We had thought that, with 50%+ probability, Samsung’s claims would be also accepted as infringed, but the jury determined that none of Samsung’s patents were infringed. Even though they were put on the injunction list, Samsung has sundry new models either launched recently, or waiting in the pipeline, including Galaxy S3, Galaxy Note, Galaxy Note 2 (to be launched in 4Q12), two Windows mobile models (to be launched in 4Q12), Galaxy S3 Mini (to be launched in 4Q12), and Galaxy Note 10.1. Most of these new models adopt circumventing technologies while for some that have not, alternative technologies have been developed.
What Happens to Apple’s Touch Related Patents being incorporated in Samsung Phones ?
Pinch-to-Zoom and Autocentering patents are central to current smartphone technologies and they are adopted by Galaxy S3. For these specific set of patents, Samsung may adopt alternate technologies or begin licensing negotiations with Apple. So far, Apple has offered USD24 per unit for an Android smartphone and USD9 per unit for a Windows 8 smartphone, as a licensing fee for using their patented technologies. Considering that jurisdictions other than the US seem hesitant to accept Apple’s assertions, the licensing fees that Samsung would pay to Apple may be limited to US shipments only, which make up 15% of Samsung’s annual smartphone shipments.
Impact on Overall Industry
Apple is likely to begin another round of litigation with other handset makers that make Android-run devices, including Motorola Mobility, which Google has acquired. At the least, Apple may very well ask royalty fees to be paid on the patents. Considering that no handset device makers other than Samsung are making profit, we believe the heightened patent burden will result in the rise of Android-run device prices. Windows 8 Mobile phone makers will grow going forward, as Windows OS seems relatively insulated from Apple’s patent issue.
