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Apple Ends an Era by Settling Samsung Patent War

It started out with a blockbuster lawsuit in 2011 that morphed into the “patent wars”with suits and counter-suits between the two technology giants that together supplied 90% of the smartphone market.

But for all its bluster, litigation, and printers ink (ok more electrons and pixels than pigment perhaps) the final suit ended seven long years later with an undisclosed settlement (presumably) somewhere around $539M this past June 27th 2018.

Apple’s lawsuit with Samsung over the ntellectual property rights of its iPhone design was at the core of what was the consumer telecommunication industry’s most popular device since -well the telephone itself. At one point, the struggle ballooned into a multinational battlefield waged in ten counties and with 50 separate ongoing cases, and billions of dollars in damages claimed by both sides, including a $400M award ruling that found its way to the US Supreme court (and was ultimately remanded back to the Federal Circuit court.)

Side-by-side images of Apple and Samsung smartphones

That number is down from an original $1 billion ruling made in the summer of 2012, when the San Jose based jury saw fit to whittle down the nine figure Apple demand of $2.5 billion to still a whopping $1,049,343,540 for Samsung’s “willful infringement.” But the kicker, the original ruling negated all of Samsung’s counter claims of infringement and awarded the Korea-based company nothing, saying no patent claims from Samsung were violated by Apple.

apple1Original drawing submitted to court from Apple patent filings

Using side-by-side smartphone images, Apple submitted this and four basic design patents (covering the basic shape of the iPhone), to persuade the court of patent infringement. The suit quickly expanded to include the GUI (graphical user interface) and the company included 193 GUI images from iPhone screen shots, utility patents and trademarks. The official complaint was filed in April (tax day) of 2011.

“Apple ignited the smartphone revolution with iPhone and it is a fact that Samsung blatantly copied our design,” Apple said in the statement about the final settlement.

Yet after seven long years, and the countless hours diverted away from what both companies do best, (innovate) it’s hard to imagine how a $0.5 billion settlement justifies all the effort, especially when juxtaposed with Apple’s current cash holdings of some $267B, earned selling innovation.

To Apple’s point, “It is important that we continue to protect the hard work and innovation of so many people at Apple,” but wouldn’t the company do better to protect them from the distractions of lawsuits, court appearances and depositions? Let’s hope (dare i say it?) this patent war is the ‘war to end all wars? Not likely, we know how the last one ended up… And like most emotional conflagrations, it looks like only the arms sellers (ummm in this case lawyers) benefited from all the efforts. Steven Sechrist