Samsung shares plunge on patent verdict

2012-08-27 07:46

Seoul - Shares in Samsung Electronics opened 6.75% lower on Monday after a US court fined the South Korean firm $1.05 billion for breaching Apple's patents.

After 15 minutes of trading the shares had fallen by 6.81%t to 1,187,000 won.

A jury in San Jose, California ruled on Friday that Samsung infringed six Apple patents for smartphones or tablet PCs.

Analysts said the judge in the case could later decide to triple the damages because jurors found Samsung acted "wilfully". They rejected the Korean firm's counterclaims against Apple.

Samsung has said it would contest the verdict.

"The context of the loss in this case is a lot worse than had been expected," including the amount of damages Samsung is now facing, said Hi Investment and Securities analyst Song Myung-Sup.

If the ruling leads to a US sales ban on the Samsung products subject to dispute, it will start eating away the company's revenue from the fourth quarter, Song said.

Analysts said a key point would be whether the patents battle spreads to Samsung Electronics' flagship Galaxy S III phone. The products ruled to have infringed Apple's patents are all older models.

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  • gkleingeld - 2012-08-27 08:09

    Amricans protecting their own companies through American juries? This is a farse.

      jo.barton.92 - 2012-08-27 09:29

      Samsung should sell their tablet pc's at half price. That will kill the apple market even in America. They may make a loss but it will teach those apple thieves a lesson.They did not copy their entire design, only part of it. It's like say car companies cannot copy the wheel design, most cars are very similar, it's nearly the same thing.

      vermeulenwa - 2012-08-27 09:55

      I 'heard' that the jurors sms'ed (texted) their vote results to the judge using their brand new iPhone S4s....or was it their iPads...not sure

      vermeulenwa - 2012-08-27 09:58

      he witnesses placed their right hands on an ipad and swore to speak the truth, the whole truth and nothing but the truth...Most of the american jurors didn't even know where S. Korea was...but knew that it must in Galaxy far far away...

      maarten.slabbert.7 - 2012-08-27 15:00

      American Jury. I will not be buying another Apple device. Samsung haswon me over.

  • michael.barns.1 - 2012-08-27 08:16

    How ironic I swear... In Korea they are both found guilty 50/50 and each pay a fine... In the USA only Samsung is found guilty of all 6 charges and must now pay, what a flippin joke I swear. If you own one of those useless Apple iPhones, flush it down the toilet, its outdated anyway.

  • jan.roodt1 - 2012-08-27 08:25

    Maybee Sansung must just stop manufacturing iPhones - lets see what Apples is going to sell then?

  • hlgiorgino - 2012-08-27 08:27

    These guys are scum I will make sure that I stick with Samsung and not the American Bullies. Why should we pay premium prices for Apple handsets when we can get better Samsung products for less money. They are so jealous that Samsung have the majority Smartphone share.

  • jurgen.eksteen - 2012-08-27 08:32

    I think Samsung must probe how many of the "impartial" jurors has apple products or shares.

  • ReinardtB - 2012-08-27 08:54

    To argue they did not copy Apple's patents is to turn a blind eye to the truth. Samsung are imitators, not innovators. The problem many people seem to have is accepting the patent laws. The fact that someone can patent a geometric design, or a software function? Many people seem to feel that's not on. Be that as it may, it's the current law. What is more interesting is asking the question: Does it make Samsung a good business. They make about $40bn in a quarter from stealing designs. When caught they get fined $1bn. That seems a good turn over for crime? The real sad things, is that no tech company, including Apple, has done anything really interesting for a year or 2 now. Seems they are all having to good a time to innovate. - 2012-08-27 09:23

      just curious ReinardtB can you name a single product Apple has invented, and not copied and improved?

      jomar.delange - 2012-08-27 10:28

      @Reinardt... You obviously know absolutely nothing about the history of Apple's many "innovations".

      ReinardtB - 2012-08-27 10:47

      @omnivore Read carefully, none of this is about someone innovating or coming up with something new, all companies borrow from others and improve change (even Apple, they just happen to have been better than the rest for a number of years now. One day that will change and someone else will lead the pack). This whole case is about ownership of intellectual property. All the major companies (Nokia, Samsung, Apple, etc) are engaged in this kind of litigation worldwide. But whenever one company wins one of these lawsuits, they are seen as the big bad wolf, when in fact, the issue for most people seems to be the application of patent law?

      kyle.berry.90857 - 2012-08-27 11:01

      agreed with darryn and omnivore, are you a sheep that just follows the laws as they stand? Question everything my friend, some-one benefits from this law, doesn't make it fair!!

      michael.barns.1 - 2012-08-27 11:28

      so reinardtB are you telling me that Apple Inc. invented the touchscreen?

      jomar.delange - 2012-08-27 11:30

      Agreed, ill-conceived patent laws are at the core of the problem. The thing about Apple though is the self-righteousness and the hypocrisy. Can you guess who said the following? "We have always been shameless about stealing great ideas."

      ReinardtB - 2012-08-27 11:55

      @michael.barns.1 I must admit have no idea who invented the touch screen. More important in terms of the law though is who owns that patent. As far as I can make out, all these guys pay each other for some or other patent technology they use that belongs to another. What to me is interesting here is that Samsung refused that deal when offered. At an extra cost of something like $10 per handset it does not seem all that much. I wonder when/if any of these companies will take on the patent laws though, rather than each other. @omnivore. Classic Steve Jobs quote. And that's my point, they all do it, beg borrow and steal from one another and others. What I find strange is 2 things. That it actually pays financially to steal ideas and patents (see my first comment). And secondly, how it polarises people for or against a company. Samsung steals and Apple steals. They take each other to court in various countries. This particular battle Apple wins and now it makes them the big bad wolf, when other companies, including Samsung, are doing the exact same thing, yet you don't mention them as doing anything wrong? At the end of the day, if you own something, a product, patent or idea (legally) why not defend it if the current law allows for it?

      michael.barns.1 - 2012-08-27 12:53

      So you don't find it ironic that in a Korean court they found Samsung & Apple both guilty and each of them paid a fine, it was 50/50.. Hop across the pond to the USA and an American court finds Samsung guilty of ALL 6 CHARGES and must now pay up... Am I the only one that smells a rat?

      ReinardtB - 2012-08-27 13:42

      @michael.barns.1 Well that's tough to say because several cases between these 2 have had varying results worldwide. This fight is taking place in Europe, Australia the US and Korea amongst others. Some have gone for Samsung, some for Apple, some, like the one you mention close to 50/50, though Samsung had the bigger fine to pay in that case. I suppose it depends on the patents listed in the case and the interpretation of the patent laws in each country? I think Samsung is playing the martyr very well here though. By making as if they are being victimized, they are getting some sympathy votes. But let's not forget, that both these companies make more money than we could ever count so a $1bil dollar fine really is nothing for them. Copying somethings and trying to make it better has pretty much been the game plan for everyone, Apple included. I'm hoping this now forces someone, be it Samsung, Apple, Microsoft etc to come up with the next big thing. If we look at the tech market, since the original iPhone, everyone has been making much the same thing, just faster and bigger in some cases. Same thing with the iPad. A new flashy retina screen from Apple is hardly the next big thing.

  • jomar.delange - 2012-08-27 10:23

    Never again will I buy anything from those hypocrites at Apple.

  • ignovr - 2012-08-27 10:28

    Funny thing is this only puts a brick in the advancement of technology because the real innovators the guy working from his garage with the wonderful ideas will be too scared to let his work see daylight because he might be using a device with round corners and that is a no no and he cant take on a big cooperation, how can we ever really advance if we can’t see competition as a good thing. Apple this will bite you in the ass.....

  • ben.louw.5 - 2012-08-27 10:39

    Android still better. This is just a minor setback...

  • vlammie.pilot - 2012-08-27 13:07

    OK all you galaxy androiders out there. APPLE IPHONE RULES!! You like your samsung because it looks like an iPhone. Accept it now, your korean device is inferior.

      ebrahim.floris.7 - 2012-08-27 15:23

      And here I was thinking you were gonna say something sensible,how silly of me that would be counter-apple wouldn't it?

      travis.vermaak - 2012-08-27 16:28

      Almost every IT guy I work with(technical people with technical knowledge), including Apple fanboys, swapped their iPhone for a Samsung S3 at upgrade(not the iPhone 4s <--Shame).....That's cause they are better.

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