The Daily Item, Sunbury, PA


August 12, 2013

Samsung losses to Apple give iphone maker negotiation edge


By Jungah Lee and Dina Bass — Samsung, Asia's biggest technology company, sells about one of every three smartphones in the world. The Suwon, South Korea- based company applauded the decision clearing it of infringing Apple's design patents, which would have been harder to work around.

"Apple has been stopped from trying to use its overbroad design patents to achieve a monopoly on rectangles and rounded corners," said Adam Yates, a spokesman for Samsung. "We have already taken measures to ensure that all of our products will continue to be available in the United States."

Samsung's three biggest markets are China, North America and Europe, Kim Young-chan, a Seoul-based analyst at Shinhan Investment Corp., said in a telephone interview.

"Samsung's market share in the U.S. was the lowest among those markets, but it has been on the rise because there were no new products released by Apple during the first half," Kim said. "When the new models come out in late third quarter or in the fourth quarter, the market rivalry will again intensify, and it won't be as easy as before for Samsung to extend its market share."

Apple won a $1 billion jury verdict last year in California, though a new trial was ordered to determine damages on about half of the award. Samsung won an ITC import ban against Apple, only to have it vetoed by the Obama administration on public policy grounds regarding patents on fundamental technology that's used throughout the industry.

That veto and Aug. 9 verdict lowered Samsung's bargaining power and made it even harder to bring Apple back to the negotiation table, SU Intellectual Property patent lawyer Jung Dong Joon said.

"The latest two results have pushed Samsung into a far corner despite the more than two-year-long legal fight," Jung said. "After seeing Samsung being smacked on the face two times straight, it will only help Apple keep its high-handed posture in any negotiation talks."

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