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August 26, 2012

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Apple verdict may hit smartphone choice

A JURY'S conclusion that Samsung stole the innovative technology used by Apple to create its revolutionary iPhone and iPad could mean fewer smartphone options for consumers to choose from, analysts said.

Apple Inc's US$1-billion legal victory sends a warning to other companies manufacturing similar devices, the biggest marketplace threat to Apple.

A federal jury found Friday that Seoul-based Samsung Electronic Co stole Apple's technology to make and market smartphones using Google's Android software.

"Some of these device makers might end up saying, 'We love Android, but we really don't want to fight with Apple anymore,'" said Christopher Marlett, CEO of MDB Capital Group, an investment bank specializing in intellectual property. "I think it may ultimately come down to Google having to indemnify these guys, if it wants them to continue using Android."

That's if the verdict stands. Samsung, the global leader among smartphone makers, vowed to fight. Its lawyers told the judge it intended to ask her to toss out the verdict.

"This decision should not be allowed to stand because it would discourage innovation and limit the rights of consumers to make choices for themselves," Samsung lead lawyer John Quinn said. He argued that the judge or an appeals court should overturn the verdict.

Apple lawyers plan to formally demand Samsung pull its most popular cellphones and computer tablets from the US market. They also can ask the judge to triple the damages to US$3 billion.

US District Judge Lucy Koh will decide those issues, along with Samsung's demand she overturn the jury's verdict, in several weeks. Quinn said Samsung would appeal if the judge refuses to toss out the decision.

Apple filed its patent infringement lawsuit in April 2011 and engaged the country's highest-paid patent lawyers to demand US$2.5 billion from its top smartphone competitor. Samsung Electronics Co fired back with its own lawsuit seeking US$399 million.

The jury on Friday rejected all Samsung's claims against Apple, but also decided against some of Apple's claims. It found that several Samsung products illegally used such Apple creations as the "bounce-back" feature when a user scrolls to an end image, and the ability to zoom text with a tap of a finger.

The US case is one of some 50 lawsuits among telecommunications companies jockeying for position in the burgeoning US$219 billion market for computer tablets and smartphones.




 

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