Apple vs. Samsung: Innovation vs. Imitation

The verdict is in, and Apple (AAPL) has won—big.

A California court ruled on Friday that Samsung had infringed six of seven patents that Apple owns, and ordered the company to pay more than $1 billion in damages, and that number could potentially triple depending on the judge’s final ruling.

This is the first lawsuit between the dominant global smartphone rivals to go before a U.S. jury, but it won’t be the last.

In addition, the verdict has caused many investors to flee Samsung’s stock on concerns that several of its infringing devices may be banned completely from the U.S. Samsung is widely expected to ask the judge to overturn the verdict and will likely appeal the case.

The ruling is also expected to bring more uncertainty and increased litigation risk into the smartphone space—after the ruling, Chinese smartphone maker ZTE dropped 7% in Hong Kong trading while Taiwanese company HTC declined 2%, bringing its losses to nearly 50% year-to-date amid continued targeting from Apple over its devices.

Here’s hoping that Samsung and HTC take this opportunity to go "back to the drawing board" and put their own creative stamp on the industry. In fact, Samsung is on to a good start already—the company is on track to be granted 500 design patents this year, a good stock of design ideas that I’m looking forward to seeing.


Louis Navellier

Louis Navellier

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