Apple verdict triggers worries about price hike

A woman walks a banner advertising Samsung Electronics’ Galaxy Note at a subway station in Seoul, Monday. (Photo : Yonhap)

Some suggest taking patent duel to WTO

Who will pick up the $1 billion damages tab Samsung Electronics will have to pay Apple, if the verdict against it is upheld?

That is the question most consumers are asking.

Some are suggesting that elements of protectionism camouflaged as patriotism may have contributed to two recent rulings — one in Korea and the other in the U.S.

Kim Neung-ho, a senior official at a manufacturing firm, said, “The U.S. court ruling reflects the interests of Apple. It’s a patriotic ruling in favor of the company from its own country. But the Korean court was not much different from the American one in that it supported Samsung.”

He said an international fair trade watchdog should help settle the dispute. “The World Trade Organization should mediate this kind of patent conflict involving two countries. Otherwise, protectionism could prevail as each country tries to protect its own.”

The primary concern for consumers is a possible hike in the prices of handsets and costlier warranty services.

Samsung, however, can’t just pass the damage payment to its customers as this would mean losing one of its biggest advantages — affordable prices.

“It is very likely that Samsung will increase the prices of its mobile devices and the consumers will end up paying for it,” a Twitter user said.

But civic groups said it is hasty to conclude whether the ruling against Samsung will damage consumers.

“Manufacturing costs and product prices may rise; but from a long-term point of view, Samsung and other manufacturers will learn lessons on intellectual property protection and come up with more creative products,” said a member of the Citizens’ Coalition for Economic Justice.

“In the long run, it is not easy to say whether it will damage or benefit consumers,” he said.

Apple users are paying attention to the Korean court’s ruling which was made about 20 hours before the American verdict. Apple was ordered not to sell some of its products including the iPhone 3GS and iPad 1.

According to Apple’s warranty service policy, if an iPhone or an iPad breaks down within one year of the purchase without the user’s fault, the user gets a “refurbished” product instead.

“If the remaining products are destroyed, the refurbishment policy becomes unavailable. It is consumers who suffer damage from the lawsuits,” a blogger said.

No trace of patriotism is found in consumers’ reaction to the rulings.

A blogger said, “Why do Korean media write as if Korea lost to the U.S.? If a Chinese company copied some of Samsung’s technology and design, would they react the same way? This matter is not about patriotism. It should be reviewed from an objective perspective as a company versus a company.”

Another blogger, virgin0909, said, “Through the dispute, Samsung was disgraced as a ‘copycat.’ But Apple has also gained a new title, ‘the king of suing,’ instead of its previous ‘icon of innovation’ image.” <The Korea Times/Kim Rahn, Yun Suh-young>

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