The US jury found Samsung copied critical features of Apple's popular iPhone and iPad, awarding Apple $1.051 billion in damages. This is a major victory for Apple, but Samsung plans to appeal. The verdict also impacts Android-based devices, as it forces changes to features. It remains to be seen how this affects competition and the wider smartphone market long term.

1. RULING IN APPLE –
SAMSUNG CASE
International Marketing Case Study

2. RULING IN APPLE – SAMSUNG CASE
It was sweeping victory for Apple Incorporation when a
US Jury found --- the Korean company of Samsung
products copied critical features of --- popular iPhone and
Ipad on 25/08/12. The nine member Jury headed by
Judge Lucy Koh awarded Apple $1.051 billion as
damages after carefully studying mountain of evidence
during the trial period in the federal court in San
Jose, California.
 The smart phone market which is estimated at $219.1
billion is dominated by Samsung with a market share of
21.6 per cent. Apple Incorporation with its hugely popular
innovative brands iPhone and ipad has only 6.9market
share thanks to Samsungs aggressive marketing tactics
which includes alleged copying ….

(Apple – Samsung Case)

3. DESIGN IMPERATIVE

Colleen Chien , a law professor at Santa Clara
University said “ The more significant issue is
whether or not Apple is entitled to an injuction, if it
is, expect to see some new phone designs
emerge, quickly – not only by Samsung but all other
handset makers selling designs similar to Apples”.
(Apple – Samsung Case)

4. 
“Samsung will ask the judge to overturn the verdict
and, if she doesn’t, will appeal the case” Mira Jang
a spokes women for Samsung.

Google Loses
Kevin Rivette, an Intellectual Property expert says
“The verdict also hands a defeat to Google, which
may need to scale back or change features of
Android. Google is in a position that it didn’t want to
be in”.
(Apple – Samsung Case)

5. VIEWS OF APPLE AND SAMSUNG
“The lawsuits between Apple and Samsung were
about much more than patents or money. They
were about values. At Apple, we value originality
and innovation and pour our lives into making the
best products on earth” Apple Inc.
 “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. Consumers have the right
to choices, and they know what they are buying
when they purchase Samsung products” Samsung.

(Apple – Samsung Case)

6.  Jury’s
conclusion means fewer smart-phone
options for consumers. - Consumers
 Some of these device makers might end up
saying, “ we love Android, but we really
don’t want to fight with Apple anymore”
Other competitors
 Apple lawyers plan to formally demand
Samsung pull its most popular cellphones
and computer tablets from the market. They
also can ask the judge to triple the damages
from $1.05 billion to $3 billion.
(Apple – Samsung Case)

7. MICROSOFT AND RESEARCH IN MOTION
A consultant said “Other companies may benefit from the
decision, including Microsoft, which has been lagging in
the mobile sector, and Blackberry maker Research in
Motion, which has been hit hardest by the rise of Android
devices”.
 In recent months, Android devices have grabbed more
than 50 per cent of the US smartphones market to
around 30 percent for Apple, which RIM’s share have
slid to around 12 percent.
 Apple and Samsung have filed 50 lawsuits in nine
countries; San Jose case the most prominent.
 Samsung found to have infringed upon 6 of 7 Apple
patents.

(Apple – Samsung Case)

8. “SAMSUNG DIDN’T COPY IPHONE: S KOREA COURT”
 Judges
in Seoul said Samsung Electronics
Co didn’t copy the look and feel of the
iPhone and ruled Apple infringed on
Samsung wireless technology.
(Apple – Samsung Case)

9. FEATURES COPIED
 Scrolling
(bounceback and rubber band
effect)
 Pinch-to-zoom & tap to zoom
 Centering capability
 Distinguishing between single- and multi
touch
 One –fingered scrolling
 Styles Copied
 Apple iPhone’s front
 Back and home screen
(Apple – Samsung Case)

10. APPLE – SAMSUNG SUPPLY RELATIONSHIP
The companies are rivals, but also have a $5
billion-plus supply relationship. Apple is Samsung’s
biggest customer for micro-processors and other
parts central to Apple’s devices.
Samsung Investment Plan
 Samsung Electronics has a cash pile of $21 billion.
 Samsung – the largest maker of computer memory
chips, flat –screen panels and TVs – plan to spend
$22 billion this year in capital expenditure to boost
manufacturing capacity.

(Apple – Samsung Case)

11.  The
more important effect of the decision could
be the impact it has on Android, the Google
operating system used by Samsung and broad
array of the companies in their devices. For
every iPhone sold worldwide, more than three
Android smart-phones sold, reflecting the rise
of Google’s software.
 Apple is expected to ask the judge in the
Samsung case for an injunction preventing
Samsung from shipping products that infringe
on Apple’s patents.
(Apple – Samsung Case)

12. 1. If you are the President International
Marketing -Samsung, what will be your
course of action in the light of the recent
verdict on the following important key
issues?
 Protection of your current market share.
 Safeguarding the brand from any further
legal entanglement.
(Apple – Samsung Case)

13. 2. If you are the President International
Marketing - Apple, what will be your course
of action in the light of the recent verdict on
the following important key issues?
 Increasing the current market share.
 Protection of brand/market share from any
further infringement.
(Apple – Samsung Case)

14. 3. Critically evaluate the recent judgment and
give your views with respects to the
potential advantages or disadvantages for
the consumers in the near future.
(Apple – Samsung Case)

15. 4. You are a senior independent consultant of
smart phone sector. Give your opinion on
the recent developments of Samsung –
Apple case judgments as how smart phone
sector is going to reshape in the years to
come.
(Apple – Samsung Case)

16. 5. Your are a marketing consultant for these
companies –
a) Google
b) HTC
c) Microsoft
d) Research In Motion.
What will be your course of action to
protect/ increase the market share for each
company?
(Apple – Samsung Case)