Core US value put to test

People wait in line to get inside for the Samsung and Apple trial during a lunch break at a federal courthouse in San Jose, Calif., Tuesday. After three weeks of listening to technology experts, patent professionals and company executives debate the complicated legal claims of Samsung Electronics Co. and Apple Corp., a jury of nine men and women are set to decide one of the biggest technology disputes in history. (Photo : AP/Yonhap)

Samsung asks jury to back customer-is-king argument over Apple’s copycat claim

The customer is king and the United States is home to consumer capitalism.

Now this market axiom is being put to the test in the case of Korea’s Samsung Electronics against America’s Apple in a patent dispute that is subject to a jury ruling in San Jose, California. It is also the key word for Samsung’s closing arguments.

“Samsung effectively defended against a bogus attack by Apple. As you know, this is a really difficult and complex issue. Jurors will be tough. But what really matters is that consumers are buying Samsung products. This is a consumer choice,’’ said a senior executive in a short telephone interview with The Korea Times, Wednesday.

The executive, who asked not to be identified, stressed Apple is still underestimating Samsung, though the company is its biggest business partner and added the Cupertino-based firm isn’t ready to welcome a “new market player.’’

“More market players mean better choices. Personally, it’s hard to understand why Apple is resisting accepting simple market rules,’’ the executive said.

Apple is hurting consumer choice and fair market competition. Apple has so far sold over 30 million iPads in the United States, giving it $19 billion in profits. In contrast, Samsung sold a negligible 1.4 million Galaxy Tabs, according to data by market research firms.

In smartphones, Samsung sold 22 million Galaxy smartphones in the United States from June 2010 to June this year, while Apple sold over 85 million iPhones since their release in 2007.

“When you look at those figures, Apple is still dominating the consumer demand for smartphones and tablets. In a market economy, the market should be open to all. The rise of Samsung sales means consumers prefer its products. Apple thinks this is intolerable, which is silly,’’ said Yoon Dong-ryeol, the chairman of the Korea Patent Attorneys Association (KPAA).

In closing arguments, Samsung attorney Charles Verhoeven said consumers make choices not mistakes and told jurors; “Your decision, if you go Apple’s way, could change the way competition works in this country.’’

The remarks by the attorney were confirmed by Samsung headquarters in Seoul.

Verhoeven once again made the point that Apple is seeking a competitive edge in the courtroom rather than competing in the marketplace.

In the rebuttal, Apple attorney Bill Lee said “All we’re saying is make your own designs. Make your own phones. Compete on your own innovations.’’ Apple Korea spokesman Steve Park wasn’t available to confirm the remarks.

“A former Apple designer Shin Nishibori admitted the design of the iPhone was influenced by the Sony Style. In design, designers are influenced and inspired from here and there. The surface design of a smartphone is getting simple as is content; viewing quality and screen sizes are more important factors,’’ said a product designer who asked only to be identified as Park.

Jurors will make their decision on the dispute on Aug. 24 and the final ruling from U.S. federal Judge Lucy Koh, who is overseeing the case, will come after three or four months as it’s highly likely either firm will file a “post-trial motion’’ on the jurors’ decision.

Samsung’s increased exposure from smartphones to tablets in the United States and other key markets is lifting it, which analysts say is good as consumers will buy more new products with better pricing.

Nomura Securities, a Japan-based brokerage, maintained its 2-million won share target view on Samsung stock though it expects the fight to continue without any imminent peace.

Nomura didn’t regard the case as a critical factor threatening Samsung’s bottom line. Spokesman Park Chun-ho declined to comment on Samsung’s next strategy. <The Korea Times/Kim Yoo-chul>

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