Samsung Countersues Apple on iPad and iPhone Patents

Overview4/15 Apple sue Samsung for “copying” iPhone and iPad4/21 Samsung sue Apple in Germany, Korea, and Japan6/17-23 Apple sue Samsung in Korea and Japan6/23 Apple apply for an injunction in Netherland6/28 Samsung ask ITC to stop importing Apple products in America6/29 Samsung sues Apple in America6/30 Samsung sues Apple in England and in Italy7/1 Apple apply for an injunction to stop selling Samsung products in

America7/5 Apple ask ITC to stop importing Samsung products in America7/28 Apple apply for an injunction to stop selling Samsung products in

Australia8/9 Apple apply for an injunction to stop selling “Samsung Galaxy Tab

8.9” in Germany8/9 Samsung apply OHIM to nullify Apple’s design patent right8/24 Apple wins in Netherland9/9 Samsung’s objection to injunction in Germany was denied. Thus,

Samsung is not allowed to sell “Samsung Galaxy Tab 8.9” in Ger-many

9/12 Apple sue Samsung in England10/6 Samsung apply for an injunction in Italy to stop selling iPhone 4S

Economic Questions

What impact does the lawsuit have on Apple and Samsung?

How could Samsung keep its market size?

Who will benefit after the lawsuit? Who will lose?

Statistic #1

“Apple was Samsung’s second-big-gest client after Sony of Japan last year, bringing in around 6.2 trillion Korean won ($5.7 billion) in sales, and is widely expected to become Samsung’s top client this year.”

Statistic #2

18.5%

17.5%

15.2%

48.8%

Smartphone Market Share in the World

(July, 2011)

AppleSamsungNokiaOthers

14%

5%

38%

43%

(2010)

Stakeholders

Samsung Apple Global IT industries

Ex. Nokia, L.G. Samsung/Apple consumers

Three Cases…

SAMSUNG WINS Samsung’s mar-

ket size increases Apple loses its

consumers and compensate Samsung

Advertisement effect

Less Apple con-sumers will have access to Apple products

APPLE WINS Samsung loses its

consumers and its market size dimin-ishes

Apple dominates smart phone and tablet market share

Less Samsung con-sumers will have access to Samsung products

GIVE UP Apple and

Samsung di-vides market share

Equal market size

Solution – Continue Law-suitsADVANTAGE If Apple wins, iPhone/

iPad will dominate smart phone and tablet market share

If Samsung wins, it will continue to have competi-tion with Apple and ex-pand market size in some areas

Other global smart phone industries will benefit from the “Loser”

DISADVANTAGE If Samsung loses, Sam-

sung’s market size will de-crease.

Higher chance for Apple to win most – western countries

If Apple loses, Apple will have to continue its competi-tion with Samsung and stop selling some of its products in some regions.

The consumers will have to obey the result of the lawsuit.

WINNER / LOSER

SAMSUNG WINS

WINNER: Samsung Samsung consumers Other global IT indus-

tries LOSER

Apple Apple consumers L.G.

APPLE WINS

WINNER Apple Apple consumers Other global IT indus-

tries LOSER

Samsung Samsung consumers L.G.

References

Reuters. (2011, April 22). Samsung Countersues Apple on iPhone and iPad Patents.      New York Times. Retrieved from http://www.nytimes.com/2011/04/23/      technology/23samsung.html?_r=1&scp=9&sq=Samsung&st=Search

Apple, Samsung overtake Nokia in smartphone market. (2011, July 31). Korean      Herald. Retrieved from http://www.koreaherald.com/national/      Detail.jsp?newsMLId=20110731000049