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Samsung Countersues Apple on iPad and iPhone Patents

Samsung Countersues Apple on iPad and iPhone Patents. Summary. Apple sued Samsung claiming that Samsung’s tablet and smart phones copied Apple’s iPad and iPhone Samsung countersued Apple for damaging 10 patents. Summary . Apple heavily relies on Samsung for chips and LCD displays

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Samsung Countersues Apple on iPad and iPhone Patents

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  1. Samsung Countersues Apple on iPad and iPhone Patents

  2. Summary • Apple sued Samsung claiming that Samsung’s tablet and smart phones copied Apple’s iPad and iPhone • Samsung countersued Apple for damaging 10 patents

  3. Summary • Apple heavily relies on Samsung for chips and LCD displays • Apple is Samsung’s one of the top clients

  4. Economic Questions • What impact does the lawsuit have on Apple and Samsung? • How could Samsung keep its patent rights while maintaining Apple as one of the top clients? • Who will benefit after the lawsuit? Who will lose?

  5. Economic Terms • Competition • Allocation • Substitute • Resources • Inelasticity

  6. Statistic #1 • “Apple was Samsung’s second-biggest 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.”

  7. Statistic #2

  8. Stakeholders • Samsung Electronics • Apple • iPad/iPhoneconsumers • Samsung consumers • Sony • Other Korean conglomerate electronic industries (ex. L.G.) • Other Korean electronics industries

  9. Solution #1 – Either OneWins • Advantage: • The winner satisfies its want • The winner’s financial state develops since it damaged the other’s patent rights • Disadvantage: • The relationship damages • If Samsung wins, it will lose its top client • If Apple wins, it will lose its most necessary resources

  10. Solution #1 – Samsung Wins Winner Loser Apple iPad/iPhones consumers • Samsung • Samsung consumers

  11. Solution#1 – Apple Wins Winner loser Samsung Samsung consumers • Apple • iPad/iPhone consumers

  12. Solution #2 – Cancel Both Lawsuit • Advantage: • Both companies will maintain their necessity • Other companies related to the two companies will maintain their stability • Disadvantage: • Samsung and Apple will have to charge extra compensation when cancelling the lawsuit • They both will not satisfy their want

  13. Samsung Wins • Apple has already damaged Samsung’s patent rights • Samsung satisfies its wants • Samsung keeps Apple as its top client • Apple keeps its best resources

  14. 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

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