Apple vs. Samsung $2bn Case: Business Law

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Table of Contents

Facts
Legal issues
Type of law involved
Why it interests me
The side that has a better case
The Influence of the ruling on the US
References

Facts

Apple is one of the biggest companies in the world (Grady, 2009). Its electronic products are considered among the best in the telecommunication and entertainment industries. The company has succeeded in offering high-quality electronic products at lower prices. It’s iPod and iPhone are some of the most competitive electronic products. On the other hand, Samsung is an emerging company in the industry. The company’s major rival is Apple. Although Apple is the most preferred phone maker in the developed world, Samsung is the most popular phone maker in the developing world. The company has production units in South Korea, Vietnam, and China (Grady, 2009).

Over the last few years, the two companies have sued each other over patent issues. In the latest case, Apple has filed a court case over Samsung. The case was brought to the United States Supreme Court on 02 April 2014 (Rosenblatt, 2013). Its trial will represent the most recent return in a long-running succession of claims between the two leading mobile companies. Similar to the preceding court case adjudicated in the year 2012, Judge Lucy Koh would adjudicate the case. The case would be determined in the California District Court. In this case, Samsung will be required to plea against a judgment that was adjudicated in favor of Apple.

Legal issues

In the new case, Apple inclusive will try to convince the court that Samsung ought to pay them $2bn for the damages accrued from infringing on its patent rights. Apple alleges that the rival company has infringed on its five patents. They claim that the act was committed between the years 2010 and 2012 (Rosenblatt, 2013). The devices involved in the disputes include Smartphones and tablets’ patents. Apple alleges that Samsung’s newest devices integrate design facets analogous to those found in their gadgets. The disputed gadgets are Galaxy S3 and Galaxy Tab 2. To counterattack the allegations, Samsung claims that Apple has also infringed on its number of patents in its iPhone and iPad newest release. The patents are related to data transmission, image processing, audio features, and video.

During the hearing, Samsung argued that Apple’s claims were unrealistic. The company claimed that Apple’s claims were targeting Google’s latest software called Android. Through this, they claim that the accusations were not targeted at their software. Samsung’s lawyer alleged that Apple was trying to use tactical moves in trying to limit consumer choice (Rosenblatt, 2013). The lawyer said that Apple’s initiatives were motivated by their loss of clients to Samsung in the marketplace.

Type of law involved

Based on the above analysis, it is apparent that the United States patent law was involved. According to this law, a patent is a privilege to keep out rivals from coming up with, using, advertising, trading, or selling abroad apparatus to be brought together into an infringing gadget or machinery outside the United States of America (Hitt & Hoskisson, 2008). The US constitution grants exclusive rights to inventors. In this regard, patents putting into practice the stipulation should grant provisional rights from the inventors. Nevertheless, currently, patents are perceived as property rights.

Why it interests me

The above case is of interest to me because through its process I will learn how business-related court cases are adjudicated and how they affect the organizations involved. Through the case, I will be eager to note how the two organizations argue their cases. Similarly, I will note how the adjudicator will come up with her rulings. I expect the adjudicator to come to her final judgment based on the previous related court cases. As the case continues, I will analyze how the two company’s sales and shares would perform in the market. Through this, I would be in a better position to comprehend how court cases affect business operations.

The side that has a better case

In the above trial, Apple has better chances of winning the case. Unlike Apple, Samsung is a newcomer in the mobile phone industry. As such, Apple was the first company to come up with a smartphone (Hitt & Hoskisson, 2008). Ever since the launch of smartphones, Apple has added several innovative features to the gadget. Samsung being new to the industry has imitated a number of Apple’s Smartphone features in their gadgets. The company has been accused several times in the past by Apple of these violations. Therefore, I believe that Samsung is guilty of the offenses and it should pay Apple for the damages.

The Influence of the ruling on the US

The ruling will have a lot of influence in the US. If the ruling is made in favor of Apple, a number of American citizens will appreciate that their patents are secured as enshrined in their constitution. Because of this, creativity and innovation will be upheld. On the other hand, if the ruling is made in favor of Samsung Americans will perceive that their patents are under threat from foreign businesses.

References

Grady, J. D. (2009). Apple Inc. Westport, Conn.: Greenwood Press.

Hitt, M. A., & Hoskisson, R. E. (2008). Management of strategy: concepts and cases (8th ed.). Mason, Ohio: South-Western.

Rosenblatt, J. (2013). Samsung Calls One of its Own at $2 Billion Apple Patent Trial. Bloomberg Business Week. Web.

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