Samsung vs Apple - The Verdict Explained, Vergecast Special Edition
Samsung vs Apple - The Verdict Explained, Vergecast Special Edition
2012-08-25
hey and welcome to a very special
edition of The Verge cast tonight the
jury has come back with their verdict in
the apple vs samsung case and we're here
to discuss it live and it's actually
still unfolding I'm Josh Topolsky of
course and with me now is david pierce
in the studio and there is right there
and we have matt macari on the phone one
of our legal experts I'm sorry on skype
there you are and also ross miller our
senior editor who is currently in
georgia right now that's not a picture
that's sleepy that's actually live video
cross right now he's covering this live
from drew we wanted to get the southern
what's the southern take on this and
have it but I'm et anyhow uh nilay patel
will be joining us in a little bit he's
actually still covering this as it
happens so let me just give you the if
you guys don't know and i don't know how
you possibly found this broadcast and
are listening to it if you don't know
what's going on but the jury came back
today to deliver their verdict in the
apple vs samsung a case they deliberated
for just about 22 hours and which is a
very short amount of time i think the
general perception here is a very short
amount of time for this jury to
deliberate they came back after about 22
hours of deliberation said that they had
a verdict and they found predominantly
in favor of apple in this case there are
a couple of as I think as of right now
there are a couple of issues with the
verdict form and and so we're going to
hear a little bit more on that Samsung
has issued a statement which I'll read
in a minute but right now I want to get
Matt who is intimately familiar with
these with with what this verdict means
and sort of can break it down for us
Matt can you tell can you tell everybody
can you tell me what what does this mean
what actually happened here
where did they find for Apple where did
they not find for Apple and and what and
what ultimately is a breakdown and I
which is what I had one more thing is
that the jury has awarded damages to
Apple right now of 1 billion 51 million
and change which is short of the two
point oh I believe it was 2.25 billion
that could have been that's right
maximum amount of damages that could've
been awarded so Matt can you tell us
what is the verdict to break down the
verdict for us what is what did we see
about an hour ago what does it really
mean I don't we don't have audio on Matt
Matt hang on one second we don't have
audio nightfall sir there we go stop
muting yourself okay so what does it
mean Brad break it down what do these
what-what actually came in today well
they what it wasn't it wasn't a clear
you know they didn't take every checkbox
in mark yes or no for Apple obviously
they checked a lot of yes boxes but they
went through and on the software patents
they pretty much gave him a
straightforward win we're talking to Bob
bounce back tap to zoom patents of
apples and then on the design pads it
was kind of a mixed bag but it was
obviously you know ninety percent Apple
but there were a few you know cases
where they actually did their job and
looked at the phones and said just you
know this doesn't copy the design
patents or I think I'll so on the trade
dress side for certain models which I
think probably should never been
included on under site somebody has two
models don't really match up very nicely
right with with the design patents so
what were what were the places where
where Apple actually didn't get what it
wanted me can you be more specific about
those baath yeah there's a little odd a
feeling that they're kind of kind of
broken up and it for instance on the
software patents at a 381 bounce back
pad and they had every device infringed
right now again these are the devices
that came out before they did their
design around for the bounce back on the
tap to zoom I believe it was the ace
intercept and replenished were the only
ones that were found not to infringe is
that does that seem odd to you those
devices were singling out amongst it I
wasn't aware that there was really
any difference when it came to software
i can see this happening on the design
side because there were some changes in
the designers a little it perhaps yeah I
don't know I mean I don't know why if
you're talking about the same it's the
same touch whoa ass right yeah this is
this is odd to me I mean does this make
you feel like this jury didn't fully
understand some of the what they were
looking at because to me it's it's if
you're looking at the software and you
see the you know the bounce-back
infringe infringement happening on the
galaxy s2 and it's running the same
software as and I by the way I maybe I
don't know for certain that this is the
case but my impression was it was a is
this a particular version of TouchWiz
that they are saying it was on all these
devices I don't know the actual version
that was running on each of the devices
they'd seen but if it didn't have the
fix basically the workaround wouldn't it
wouldn't they have had to find that for
all of those devices doesn't that seem
the software is the same right and this
is a part during the trial that was
pretty wonky is that they really did
have enough time to go through all these
particular devices so a lot of this
analysis the jurors did in the
deliberation room and i'm not sure why
the ace and interceptor replenished
wouldn't have the same exact software
features right as the rest of the
devices i mean i can tell you on the
design side why there were some you know
some no votes on infringement feel free
please do so so if you go through those
you could you can see that they I'm
pulling it up because it was hard to
track during the actual reading of the
verdict well I'll tell you what why
don't you take a look I know there's a
bunch of stuff that you're just getting
up to speed on because this just came
through we'll get back to this I want to
read the statement that that Samsung
issued over this if I can just find it
in my notes here they issued this
statement this is from Samsung today's
verdict should not be viewed as a win
for Apple but as a loss for the American
consumer it will lead to fewer choices
less innovation and potentially higher
prices is it important it is unfortunate
the patent law can be manipulated to
give one company monopoly over
rectangles with rounded corners or
technology that is being improved every
day
Samsung and other companies consumers
have the right to choices and they know
what they are buying when they purchase
Samsung products this is not the final
word in this case or in battles being
waged in courts and tribunals around the
world some of which have already
rejected many of apple's claims Samsung
will continue to innovate and offer
choices for the consumer so let me get
the opinion of everybody here David and
Ross feel free to chime in is this is
Apple appealing this are they and Matt
obviously your opinion is very valuable
here it does Apple come back I'm sorry
not Apple is Samsung appealing this are
they going to come back and say we're
not we're sticking around we're not
budging well I mean my question to you
is why wouldn't they why wouldn't they
not appeal this I mean it's clearly a
loss in almost every sense for them yeah
well I mean there is they could say hey
you know what we got beat we're gonna
keep doing what we're doing we're
already we've already worked around most
of this stuff we don't need to keep you
know stay in litigation that costs money
you know and it takes time she takes a
question won't ask Matt um not to derail
too much Matt in your sense do any of
Samsung's newer products um fall at risk
now is the s3 at risk for many of these
decisions today well the s3 is in a
different case so actually different
patents asserted but just taking it kind
of looking at what they got infringement
on Apple I mean Samsung statements
little crazy because for the most part
we're talking about damages here for
past wrongs you're not talking about
injunctions for a lot of these features
because their designs are different so
you dont rly have a product that's going
to be a problem for the design patents
and for the software pads at least the
bounce back we know they have a design
around and I'm sure it's not even an
issue anymore with regard to
infringement of that software patent so
a tap to zoom is still alive and tap to
zoom as far as i know is still fully
functional in inside of the TouchWiz and
Android in general and in this in this
in these fine I mean they found for
Apple and the in the tap to zoom piece
correct yeah that was the three that's
the 915 patent so yeah right so so does
that set a precedent now I mean does
that mean that anywhere tap to zoom
exists Apple King can safely go after it
and.and win I mean is this is if the
president is SAT with this does that
mean that all they need to do is say to
a jury look they've the courts have
already found for us we can they go to
HTC can they go to you know any other
manufacturer and and just roll out the
same the same argument well not really I
mean it's obvious it's it's great
leverage for Apple going into a
courtroom but they still have to align
this new claim against a new device
whether it's HTC or LG or anybody or
motorola so there are maybe I'm sorry
not in a robe we have is there's a
statement from Apple hear that
apparently they gave to I don't know if
they've given to a number of this is
this is in the times the amount of
evidence presented during the trial show
that Samsung's copying went far deeper
than even we knew said apple spokesman
with katie cotton we should make these
products we make these products to
delight our customers not for our
competitors to flagrantly copy we were
grateful to the jury for their service
and for investing the time to listen to
our story and we were thrilled to be
able to finally tell it the mountain of
evidence sorry uh sorry that's the first
part of it than the amount of evidence
the lawsuits between Apple and Samsung
were much much more about patents than
money they were about values at Apple we
value originality and innovation and
prior lives into making the best
products on earth we make these products
to delight our customers known for our
competitors to flagrantly copy we
applaud the court for finding Samsung's
behavior willful and for sending a loud
and clear message that stealing isn't
right so that's Apple uh not surprising
that they are pleased with the verdict
and they see this is kind of a you know
this kind of proves their theory that
they've been they've been ripped off and
you know I will say the trade dress
claims and I said we talked about this
on the verge cast I think this weekend
the week before a Matt I'm sure you guys
are discussed this at length I think the
trade dress claims were clear
particularly in the case of the of the
phone OS I mean there was some really
flagrant stuff there and it did seem
like Samsung went into it saying apples
do mean x y&z how do we copy that for
our product well in that the evidence to
that effect was was brutal there was so
much of you know slides of the iphone
side by side with
samsung phones yet the designated right
here's the thing with a 41-page document
that's kind of like hey they just did
this page after page trying to figure
out how to counter my feature the patent
stuff seems i don't know i guess the
patent stuff seems more surprising to me
and it seems especially surprising given
the fact that that it was left out of
certain products that would have you
know presumably had the same feature I
mean I guess what I'm more I'm not
concerned with the idea that that Apple
that that that they found in favor of
Apple what I'm concerned with is that
this jury didn't know exactly what they
were looking at is that seem well that's
where the 21 hours of deliberation thing
becomes something I'm worried about like
Matt do you think it's it's feasible to
say that in 21 hours and 37 minutes or
whatever was they actually did their
true due diligence on every single
device to find every single thing
because it's like you said Josh these
phones presumably have the same OS with
the same TouchWiz and yet they're
finding you know the bounce-back
scrolling on one and not the other right
that seems really off to me yeah I don't
understand it so I yes I think yeah I
think here's what I think I think they
did on half their job I think they went
into it and I think they took their time
initially probably and got through a lot
of those charts and I think they there
might be something we're missing with
regard to whether or not the bounce back
is exactly the same and that all the
devices i don't know but how can they
how can they bring a i know they're
going against the specific devices but
how can they bring a case about this
patent if the versions of software are
different across devices i mean i
understand that there's a certain i mean
you know there's a certain
implementation of that in i mean i can
they just say well it's a broad sweep of
you know four different versions of your
software do it is that what this was or
was it more about a specific version i
mean obviously these might have
different versions of the software
loaded up i have to assume that they do
so they're cutting it off i mean they're
not including ICS in the claims i mean
and i don't think that i think and i
can't remember what the number was but
they might have capped it like 2.2 or i
don't know if you guys know when the
somebody's designer rounds came about
but it's only been the design around
then cut but the bounce effect was it
even in android originally i don't
recall
I mean maybe they took it out maybe they
took it out at two I think 2.3 was where
they introduced a little the little
bright pop at the end of the list so 2.3
if it was in if it is in stock Android
then yeah I don't really recall at this
point but if they're only looking at
devices that are within you know up to
2.2 then I can understand if those
devices were on 2.3 and I think we need
to find that out and I'll have Michael
do a little research on that do you want
to do a little research and find out at
the devices they didn't find for the
bounce-back patent if those were
gingerbread if they were 2.3 or not okay
so we'll look into that but it's
interesting I mean let me need took
their time maybe these on the first part
now I think it's pretty clear now we're
starting to see some mistakes if they
made towards the end of the verdict form
I guess there's a couple more just came
up since we went on dealing with patent
exhaustion whether or not they should
have ruled the way they did they're
based on a preview dancer what is that
what does that mean can you explain that
a little bit exhaustion is when you
Apple's argument was that samsung sold
these broadband ships to enli sins them
to intel who then sold them to apple so
therefore apple gets a license
indirectly through Intel therefore he
can't come after Apple for infringement
so it's just you can't double dip if
you're in your samsung you already got
your money your license fees out of
those patents my license you can selling
a product or allowing until the create a
product that Apple then use pneus
devices and it apparently there's some
inconsistency now that the jury's gonna
have to go look look at there so I don't
know all this is at the end is it they
didn't understand the difference i mean
i think they got through i mean this is
pretty clear that there was no attention
going into this to really reward samsung
in any way right well I know something
is it's zero dollars rewarded to them
right yeah I got I mean they they got I
mean I think there's probably arguments
that I they didn't even find him to
infringe the fran patents I think that's
right yeah that's crazy I mean it's a 3g
standards but I mean it's it's it's a
little weird they would infringe a
patent date in theory half
implement so to me that my my this this
kind of reinforces my feeling that like
I think it's an Eli said this a bunch
and we talked about this but it seems a
little crazy to put nine regular people
in a room and say decide something and
it's not just you know it's not just
like somebody broke into my house and
stole something and I want to get my
money for the thing they stole or I want
to get that thing back this is like a
couple of these questions are you're
going to set a precedent for what this
means like can you like when a future
trial happens right they're going to
look at that Fran stuff and someone's
going to say well look there's a
precedent for this these in this trial
they didn't find for the friend for
samsung and the Fran stuff and so oh so
the question is like well I mean I mean
the debate i think is it's like is this
the best way to decide extremely complex
extremely technical i mean i don't think
i don't think a team of verge editors
could have done a much better job with
this and this is something that we do
for a living i mean this is really
highly technical stuff and you've got to
have a real understanding of what this
means both from a legal standpoint what
it means legally and what it means
technically and so I don't I don't fully
I I I don't fully I worry that like this
is not who I want deciding what will
dictate you know some points of
innovation in this in this industry I do
think that that Samsung had it something
coming to them in terms of this verdict
you know I do think that that there were
clear in there was clear infringement I
just worry that this the putting nine
random folks in a room and saying decide
if you know if this patent is valid or
if they've infringed on very technical
aspects of a product is quite difficult
for them do we have do we have Neal I
what does the is he ready to go yeah
he's ready okay Neal I is here just get
ready things are about to get crazy
nilay patel is presumably on the air
with us now I believe neil has already
written something like 10 million words
on this trial asrock approximate numbers
as
Ross dropped do we lose Ross okay it's
Neil I now so we've got Neil I'm Matt
who along with with brian bishop who is
it was in the courtroom tonight and has
been there throughout this trial and
will continue to report on it from the
scene right here can you guys hear me
yeah we can hear you can kneel I not
hear us now I can hear you I don't know
if you could see me we can see you look
like you look like you just witnessed
the verdict Oh like hell that was the
verdict being turned in the trial so
dude um the go ahead what do you make of
it uh-uh so here's what I think just
having listened to it and as it was
coming out um the jury basically I think
what they did was they decided that
Samsung had copied Apple they decided
that Apple was right and then they went
through and said this is a patent on
bounced back scrolling let's look at all
the Samsung devices in the box and see
which ones have it okay these most of
them do so those all infringe this a
patent on tap to zoom which ones have it
and they did all that hard work of
saying everything here is valid let's
see which which to which samsung device
is actually infringed but say apples
mostly right and then they went and said
the only thing that Apple lost the only
kind of major piece here that Apple lost
was on the iPad design stuff right the
jury said the Samsung tablets that the
tab 10.1 the older one that looks that
looked pretty much exactly at the iPad
they said this one doesn't infringe the
ipad right people aren't people are
confused about it in the marketplace it
doesn't violate apples pads that's the
only place where Apple really lost is
protecting the look of the ipad ipad
yeah that's correct which is which is
the only one where they had an
injunction going into it which is odd
though this and this is the thing that
strikes me as so bizarre is that the one
place where you could have really i
think given a good argument you know
that you like you said there was an
injunction there was a good argument
like yeah they did kind of rip this off
and they didn't find there which is like
where does that where was the financial
I don't understand so like here's what
I'm saying like I think the jury decided
that Apple was right
I think Apple want like ultimately
apples case was we spent all this time
and money creating these revolutionary
products and Samsung didn't spend the
time and money they didn't take any risk
and they just make products like ours
we've been saying all along it's a good
story and I think the jury bought it and
they did a little bit of the work to
figure out exactly what devices so you
know they didn't say the Droid Charge
looked like the iPhone design patents
but you know they they understood that
other guys I definitely got that yeah
but then they got to Samsung's case and
it was clear at that point i think they
ruled against every single element of
Samsung's case but down the line they
said none of Samsung's patents are
infringed even the patents that are part
of the 3g standard which is like dude
like the phones connect to the network
this you know the patents are part like
there's I mean they probably
infringement let me really clear you
ready be technical about it went a to be
relation I want to be clear youyou would
say in your estimation and and and mad
I'd like to hear you from you they got
that wrong like they did like Samsung
was infringed upon for those patents is
that is that what you're saying I mean
I'm saying unless you're an electrical
engineer or like a cellular data
engineer there's no way for you to know
I don't know but I do know that the
samsung says that the patents are part
of the standard the device is clearly
make use of the standard right Intel
which puts the chips in the devices has
a license to the patents like the it is
logically I think this really like
others there there's a lot of emotion I
think there's a lot of emotion here I
mean I think they were like this you're
right about the story and i think i said
look samsung is the bad guy here they
screwed up we're not going to give them
something like I think they kind of
threw them a bone almost with it with a
galaxy tab infringement right there with
the galaxy tab stuff saying like yeah
you know I think hasn't really looked up
over the charge but those are easy i
think those are just like you know okay
samsung is not going to get hit with
every single thing but it did seem like
with those with it with the with the
standard stuff they were just saying you
know what Samsung didn't win any I mean
you know and they didn't do the hard
work like there's Samsung did win one
where they said the the patents that
doesn't infringe the standards patents
and so Samsung
doesn't violate section 2 of the Sherman
Antitrust Act and you can like that's
the sort of question were like look we
already decided most of the case we
decided Apple one we gave them a billion
dollars to know like who cares no they
didn't violate the 2k like I don't even
know that means no and you get that
feeling towards the end of Samson's case
where it's very technical very dry very
did they use the doctrine of patent
exhaustion they're like no screw it and
Samsung's lawyers are in court now
saying well they can't say our patent
Apple has a valid defense of patent
exhaustion because they said they didn't
infringe the patent so like there's you
know like there's this walkie stuff the
jury just didn't do correctly because I
think they already decided that Apple
one right I don't think there's any way
to interpret this you know we I've been
saying and you know there's a lot of
shades of gray between Apple winning and
Apple losing like fit and I think that's
least at least if easily there's a lot
of sexy shades of gray in this case um
but this one is very much closer to
Apple I mean I think it's a definitive
victory for Apple they didn't win
everything I think the ipad I think
Samsung's story you can't patent a
rectangle I think that came through with
the ipad i think they said look this
galaxy tab doesn't look like the I
unless it's a rectangular icon yeah well
yeah they up help but I mean they upheld
the grid of patent you know what is
padded right okay yeah they upheld it
they said that a lot of the devices in
French you know to me I think the jury
made a decision an apple one and then
they went through exactly what winning
meant and then they decided that Samsung
loss and it was easy for them to go
through what losing men cuz i just had
to hit know a bunch of time all right so
so here's a question this is for
everyone David Matt Neal I'd actually
really mad I mean do you agree I mean
man I've been talking with us i'm
curious if he agrees with my take on
this yeah i do i think when i when i was
looking at and I saw these periodic nose
and non-infringement sand you know when
they did throw them the bone I felt like
when you're taking like you cheat on an
exam and you know I gotta miss a couple
and I gotta see a couple in there so
it's not obvious that's what it felt
like commutes it's not really felt like
they were going into it knowing exactly
where they wanted to what were they
wanted to come out you saying they gave
it a little realism bite saying that the
can't be one hundred percent for an
apple than the native selection mugs
right so so so obviously apples pleased
I mean they says this is a huge win for
them what I want to know is that I have
two big questions and I think everybody
this is the question that tomorrow and
Monday and for the rest of our lives
until the earth is destroyed in December
of 2012 I think everybody's gonna be
asking there's two things one what does
this mean now you know what happens now
like in terms of what Apple does next
you know what is the next like in this
war between Android and iOS which is
really what it is what's the next
immediate move for apple or for samsung
or for anybody who's making an Android
device you know like what are the
repercussions of this and then the next
question is and we'll take that one then
we'll go to the next one the next one I
want to know is what does this mean for
how will this affect how will these how
will this case affect the way people
come at designing and innovating in
technology and particularly in the
mobile space i'm just wondering if you
have a sense of that but like i'd like
to talk about the first one like what
does this mean now does Apple just go is
that does this is this license to go
completely crazy were they already going
and crazy in the sense of like they can
just do anybody they want win who's wait
who's left to sue I mean I well but you
know but they could well I don't know
you tell me who's left to sue I know a
verge job becoming a Phoenix DUI the
rectangles on the site we need to do
something about that well immediately if
they're already suing everybody doesn't
this make their case against everybody
else really happy no that's what I'm a
fairly obvious chilling so that's it so
what are the next steps like are there
more people to sue and and how does this
affect the cases that they have and you
know are there more cases to come with
bumpa knees that they already you know I
know they've already got some in the
works but so here here I always believed
that this case would settle I always
thought that the jury would take forever
leave wrong basically I was wrong yeah
the reason I thought it would settle and
I think one of the most underreported
parts of this case has been the lengthy
settlement negotiations that have
occurred between Apple and Samsung and
this slides we have from Apple that are
like we would prefer Samson they take a
license here are some license rates that
you
hey do you make your devices that use
all of our patents because you're a
partner and our friend and samsung said
no right so now Apple can say to Samsung
look we can do this again we can do this
a few months the Galaxy Nexus we can do
it again with the new galaxy tab or you
can finally come to the table we won't
make you pay two billion dollars its way
a bunch is the suggestion that Samsung
didn't come to the table you know they
didn't they didn't reach a settlement
agreement and you know I think part of
that was because they both wanted this
additional leverage right now as Apple
has a lot of leverage right they won but
it's no shame Sam so you run around in
circles samsung didn't come to the table
or didn't you know go for whatever their
terms were is it possible that whatever
they were proposing was far more
damaging than what the outcome of this
case was yeah I think it was a huge
number I mean that Apple wanted 30 bucks
a knife or 30 bucks a samsung phone I
mean to me this is like if Samsung has
to eat the billion dollars which by the
way they can eat I mean it's not nice
nobody wants to like lose a billion but
Samsung's are very large come yeah
that's not a crummy I just got it I just
somebody just sent me a tweet that said
this this case is actually good value
samsung they've paid a billion dollars
to become the world's number one phone
manufacturer from basically nowhere
which is you know they were basically I
mean enochians a good it is a good point
I mean I'm not saying that they the
winner here but I will say that you know
if if Apple wanted a 30 bucks a phone or
whatever and what they ultimately have
to pay is a billion dollars and it's
they get a you know hey don't steal our
stuff anymore yeah kind of made out okay
also they've got to pay the bill the
building dollars is to be very clear the
billion dollars isn't the end right the
billion dollars is that's what the jury
decided that Samsung would have paid to
Apple if it had properly licensed
everything it plus whatever's apples
lost sales would have been plus you know
a punishment because Samsung did it on
purpose right yeah now that's done so
that's everything in the past you've
been punished and now in the future
Samsung has to pay another royalty rate
and like matt is saying Apple wants
absurd royalty rates right they want a
thirty dollars they now dictate those
royalty rates I mean because they basis
but I think they have much more I think
I have much more leverage in
negotiations I think you know again II
negotiate
come out i'm sorry elaborates on what
devices yeah I retro actively find yes
so we want to refine 30 bucks a device
for each no no no not like that and Matt
correct me if I'm wrong here but the way
this would work is Samsung and Apple pay
to settle the outstanding litigation
right and then they say in the future
just like apples agreement with
Microsoft we're going to sign a
cross-licensing agreement where Samsung
pays apples some amount of money in the
future per device and then we'll put in
it an anti cloning agreement where you
can't make any devices that look just
like our devices and that's the
agreement Apple has with Microsoft it
clearly works well they're not suing
each other they're very friendly it's
working it's working great for Microsoft
right I mean Microsoft has to make the
beauty problem but let's be but let's be
clear we even with that in place I think
if Microsoft was achieved enough success
in this space they could find something
I think they could find something to
have a problem with I don't believe that
like Microsoft is just being left alone
because they've got these agreements in
place to being left alone because
they're not a threat they're not in any
way a realistic threat it's sure they're
years away what just let's just keep in
mind that the history of the mobile
industry has not been one of lawsuits
it's been a a polite of the iphone
everybody else making products that look
like the iPhone and Apple saying hold on
a minute you've got to pay us or hold on
a minute you can't do that and that's
what happens after every sort of
disruptive innovation but usually the
industry is really good at
cross-licensing so for example nokia
still makes a lot of phones they're
competitive with Apple they sued apple
for violating its patents and they
settled an apple paid nokia bunch of
money when it gave it some of its path
this is and how much as this is how much
of this is actually driven by this this
I mean what I assume like based on
Walter Isaacson's biography of Steve
Jobs there's clearly you know somebody
you know I think Matt Panzer II know
from from The Next Web tweeted the quote
right after this verdict came down which
was you know I'm gonna go thermonuclear
I'm gonna destroy and rake is it the
stolen product which is ridiculous but I
mean yeah well it is I mean we know
intellectually it's ridiculous but how
much of
this is driven by you know what was what
was presumably a mandate when jobs you
know before his death at Apple to that
we got to go after Android I mean like
Mara it's true but jobs got it wrong for
one big reason is that this case doesn't
employ doesn't implicate every android
phone coming out I mean this case in
particular deals with what ninety
percent of phones that don't exist
anymore you busy talking about a lot of
things that won't even affect the mark
you're not talking about injunctions it
will matter and you're not talking about
Android going away well but if they go
but if they go after HTC and if they go
after Samsung and they go after every
little bit that they think infringes
it's like a war of attrition isn't it I
mean it's a death by a thousand cuts
eventually yeah i mean but HTC doesn't
infringe most of these pens no but they
have but they've got other claims now
well and this is also where I my big
questions about trade dress and I think
this is where this comes in a lot is
that like you can design around some of
the you know the bounce-back scrolling
and stuff but a lot of what seems to
have been set here is that Apple's
devices look the way they do and that's
you know significant and night they only
the way that I would you can be you
wouldn't confuse an egg alex e nexus
with an iphone no no I didn't either but
I wouldn't use confuse a galaxy ace with
an iphone either but I mean there is a
you wait are you sure David because that
you can't mean they look very similar no
no I think there is a series of Samsung
devices that they specifically and and
unabashedly i would say designed to look
like an iPhone okay yeah the galaxy is a
cat that example couch is the get is the
galaxy what's he know going back the
original gallop I was on tmobile that
was it the Viper yeah was it built just
brazenly ripping off the 3gs design it
had the silver band the shape was the
same I mean you put them next to each
other with the screen off I mean it
really looks like I think there was a
period where Samsung was doing that I
think that I feel like there was a brief
period where that happened and then
everybody was like we got to make
something that looks unique and I think
most of the phones are on the market now
I mean there's no question Apple we're
definitely revolutionized the market
when it said we're going to do this
touch screen phone yeah but you know
there has to be a point where you get
beyond like it's a touchscreen I mean if
they found for the char
I think it's a kind of a good sign that
even this jury was willing to say all
right look there's some obvious points
here we you haven't there's not
infringement on the design but but so
what I'm saying is I guess getting back
to this point they've got they're going
after HTC for some other stuff they've
got some other Samsung stuff lined up I
mean who else is there really that who
else a motorola role right so yeah but
keep in mind to David's point the other
cases against Samsung don't have any of
this trade dress stuff in it don't
really have any of this design patent
stuff in it the case against HTC none of
the design stuff no trade dress stuff
but there's only no here but they're
going after the things they can go after
so what I'm saying is if they find if
Apple's found for it you know in this
case and HTC has to worry a Motorola has
to worry I mean everybody and by the way
everybody online right now is saying
like whoa Microsoft really made out
nights and this one because everybody's
looking at Microsoft going we've got all
this protection Microsoft has all this
protection and all these agreements in
place with Apple as we just discussed
this would be a nice safe haven if I
want to make a unique phone and sell it
at four in a verizon store I don't have
to worry about Apple coming after me for
infringing on something because I've got
the protection of Microsoft so really
sound like boy microsoft made out like a
bandit I mean isn't the goal here to
obliterate Android isn't it like it
isn't it isn't it truly a war of
attrition where if you make it hard
enough for these manufacturers and by
the way it's a business strategy I'm not
arguing against it I'm just saying that
it does seem like they could make it
hard enough and and worrisome enough
that they drive these guys to to
somebody like my pops off to in this
sites by the way is like how great is it
if you break up what Google is doing in
the market and then drive back to your
and then drive people to your your you
know fourth place competitor in but
Emily position they're in right now what
a slut hold on for one second i mean you
know one of Steve Jobs earlier quotes
that is I think probably more important
than we're going to go thermonuclear war
and Android is when he said for Apple to
win Microsoft doesn't have to lose and
they I mean these two companies they
work more closely together than I think
we ever give them didn't say that ever
Google though did he hasn't said that
about what he's ever said that about
Google is my point uh
you know but apples not run by the ghost
of Steve Jobs or some misplaced no no I
suggest we all tita know his anger no
but I bet there are there obvious
business concerns here but what I'm
saying is simply that as a business
strategy it would make sense to chip
away at your biggest competitor yeah
which would drop you know I would so
I've heard for a long time that apple
and google talk about blanket licenses
for android about settling all this
stuff that getting back to business and
they the big companies are both in the
valley i think they talk a lot and you
know again like I'm yeah I just wrote
this what does it mean post and the last
line is well if this is the chip is that
how to Apple eat it it's up if this is a
chip that Apple needed to get google to
sit down and pay the money then maybe
it's time you know maybe it's time for
Google to just suck it up and say look
we built this thing we we built Android
we built a really fast we didn't you
know we basically created out of nothing
obviously you know it has a lot of
patent issues because it's built on
linux and microsoft's was always said
linux US patent issues all of our OEM s
are paying microsoft maybe it's time
that we have them pay apple or maybe we
pay apple and we can all go back to
building shit uh if that's the outcome
that would be a great outcome that would
have made all this worth it if the
outcome is apples on the warpath and
they're suing everybody and google keeps
insisting that android is safe and then
the OEMs keep insisting they didn't copy
anything I you know I don't think that
accomplishes anything and I think the
other important thing to keep in mind is
that you know for every lawsuit Apple
has open they've got to pay for it as
well you know that billions back I don't
think they're worried about that hey
look hundreds is it they spent hundreds
of millions of dollars in this case
they're spending hundreds of million
dollars on cases around the world for
other things and you know they might
have billions in the bank and they might
make billions every quarter but that's
still money that they could spend
another place I wouldn't I don't think
anybody likes paying a lawyer I will say
something about this that's why I work
for you now I we likewise love yes
that's and that's that's true as a man
who's paid lawyers I can tell you it is
it is highly unenjoyable can I just
interject with one quick yeah you see
drooly oh yeah so we're done it's over
the jury has been its mates finish any
what impact what did they change they
came back they were two issues were
there were two patent issues that they
charge damages for but
found no infringement for and they've
dropped the total number of damages down
to 1 point 0 for 9 billion they they
they chopped off a little bit dish wow
that's gonna have two million yet i'm
thinkin about victory for samsu yeah
that's right yeah and also changed from
yes to no on both devices saying that
they didn't infringe alright so that's
the jury being lazy again right they're
like well we don't want to figure it out
doesn't infringe will rearrange the
money and although I mean like I that's
not a you can say maybe they mesmerize
did infringe or whatever the other
device was um the intercept the interest
the Sampson cover doesn't everything
about Lex case was the phone names if a
huge list of my shame for samsung yeah
um yeah I just don't think like that you
know Matt and I have been saying for a
long time that the huge complexity of
apples case made this a logistical
nightmare for them to convince the jury
and I think that was born out and i
think it was born out in both uh you
know as an advantage and is a huge
disadvantage i think the advantage was
they made it so complicated for the jury
to say apple one that they just said
that they won right there like screw it
we're not figuring this out apple one
check a bunch of boxes and we'll go and
they may odd as we're seeing they made
some mistakes right the disadvantage is
now they provided samsung a lot of
opportunities to challenge with the jury
actually said Matt can you take us
through kind of the appeals process here
I know and I you pride a better handle
on it than I do well the biggest thing
coming up right now is everybody's gonna
file motions even apples going to filed
motions to challenge certain parts of
the jury burped because you know if you
don't get everything you still try to
get everything after the case but what
happens now is they file post-trial
briefs and apples basically are an apple
and samsung mostly samsung setting up
their case for appeal they have to raise
all these issues and challenge the
verdict so that they can appeal to the
Federal Circuit but one of the big
things is coming up is Apple's
affirmative brief they're going to file
a motion because the jury found
willfulness that they're going to file
for a motion to triple the damages so
the statutory provision allows for if a
jury finds woeful which by the
they often do if they find infringement
they often find willful because they
don't know the difference it's really
nuanced right um so they find willful
and the judge can make a determination
to triple those damages up to three
times what they are right now which you
know three billion dollars a lot of
money I don't see it happening it's it's
it's a rare event for the judge to take
it and triple it but that might just it
that would be a neighborhood of what
Apple originally asked for that would
mean really crazy with it was just shy
of three billion would be it would be
more but it would be in the neighborhood
I I have trouble I by the way can I just
point out that we're now at the point
where we're saying five hundred million
dollars is in the neighborhood of
somebody Wow is actually more like 750 I
thought it was 2.25 is it personally
point 5 45 2002 1525 okay but I haven't
messaged totally in the neighborhood of
massive numbers left right center as
soon as they announced the dollar amount
i typo'd I I did 1.5 to the one point oh
five then apparently a bunch of people
retweeted including like a Associated
Press incisor and so congrats to me for
ruining news for every I don't know it
just just when you're when you're
excited and hurriedly typing just it's a
number and it's billions make sure you
know but but one thing I'll say about
this and and by the way like if they do
come back and get triple damages I feel
like it's a kind of a nasty move but I
also feel like that's going to be
difficult to do considering the fact
that this jury wasn't exactly I mean yes
there is there is a lot of affirmative
for Apple but I think it feels like it's
not like just they didn't went down the
line and said Sam saying I mean I know
it does it does seem that way but like I
think that a judge would be able to look
at this and go well the jury wasn't you
know so resolute on every piece of this
that like Samsung has got to get hit
with the with you know had the book
thrown at them right what can I tell you
one thing about tripled trip willful
damages the judge as a bunch of factors
to look at and a two of the key factors
are 1 whether you can show evidence of
intent to copy which we've seen a lot of
that with Samsung and the second one is
totally outside of infringement has to
do with litigation tactics
so if the court feels that Samsung has
acted inappropriately during the
litigation she can take that into
account and whether or not the triple
damages or somehow multiply damage above
what they are God that that's rough is
the samsung to Samsung endanger
themselves by going back if they appeal
I mean is there there aren't worth
repercussions if they appeal right or do
they have to go I mean what I'm not
really i mean the court the appellate
court could say well you know the jury
was wrong in some respects and it's even
worse for samsung than we thought but
mostly it's either gonna you know kind
of affirm everything or chop it down oh
and when yeah and appeals courts don't
run around overturning juries no right
and we think it Lansing has a big
mountain to climb rights and they feel
sorry can also say no I mean that's like
you know Samson can say we appeal the
entire case the appeals court can say
there's only one issue here that's worth
appealing or I similarly summarily
dismissed the entire and say no we don't
want to hear it and so what is it and so
what is the danger at this point for
what is the danger at this point for
samsung if they don't appeal and they
just I mean they have to go do they have
to go into talks with Apple about how
much they will award them per device or
can they can they hurt that can they get
out of it can they avoid it in some way
they would be hugely irresponsible for
either apple or Samsung to not
immediately start holding additional
meetings about further licenses and
settlements I mean they've got other
outstanding cases out there the Galaxy
Nexus case is out there they have to do
it you know like they this isn't it like
it's not like sports you know it's funny
you know the other side of our company
is a sports company and they they have
wins and losses you know at the end of
the year somebody wins a super bowl and
then we all start over again next year
this isn't like that this is business
and it go it'll keep going tomorrow so
Samsung yeah so Apple won a huge
decisive victory right you stole our
stuff now they've got to go back and say
well what are we going to do about all
this other outstanding conflict we have
we have to resolve it so our companies
can move forward so I'm sure they're
gonna like talk but immediately maybe
you know they probably take
weekend so apples lawyers can get drunk
and Samsung's lawyers can that's turnkey
drunk I think they're both get a drug
for very different reasons as we could
you know it's actually really
interesting sins lawyers represent
everybody else and there's a lot of talk
that google paid Samsung's firm quinn
emanuel to represent samsung HTC
motorola so they've got a lot you know
google has a lot riding on this samsung
has a lot riding on this but that law
firm has an enormous amount riding on it
because they're representing all these
companies can sample all these other
cases so so here I got a couple of
questions do you want to say something
I'm gonna veer into a totally different
direction so ask okay let me ask a
couple questions and then make a
statement and then will veer wherever
you're veering I'm so so so my first
question is and this kind of these two
are kind of tied together so the new
version of the latest version of Android
has things that Weeden two things are
happening the latest version of iOS has
stuff that's definitely could be you
could say you look at and say that's
from Android like the notifications for
instance now i don't know if google has
patents on that or not or any of these
other comedies hold patents maybe
motorola holds a patent on that i have
no idea which is now owned by google
Mobility at least and then there's new
things are introduced in an ice cream
sandwich that are definitely like iOS
like the way the icons will auto
rearrange on the screen for instance
yeah even jelly bean nice yes no and I
see us they were introduced you could
the icons would rearrange on the screen
I thought that wasn't matter no no even
like full page info it's in folders it
was in folders it was in folders in ICS
and now it's a great system wide on the
home screen sure these seems like way
know what's that it doesn't matter do
you seem like places where where Google
almost break like kind of out of went
out of their way to do it like nobody
had asked for it there were other ways
you could have dealt with it or you
could have just left it as it was which
is that it didn't do it at all uh is
there do we feel like I'm just curious
in our their protections at this point
like it's google not going to go after
Apple for this notifications thing and
it's Apple not going to go after Google
for stuff like that for some other
reason or do we
it is it possible that they go that they
actually do go back for things like that
I'm just curious like those two in
particular stand out to me as like as as
notable as a bounce back so I'm
wondering if like there are further
cases to be had in that situation or if
Apple doesn't just apple doesn't want to
go to two straight to google and it's
harder to pin some bad stuff on I mean
who makes an ICS phone right now samsung
well right well I mean Matt you all
right you want to go out for this one
yeah so two things first I haven't seen
any evidence that Google has a patent on
notifications or anything really thats
dammit they have an application on the
notification yes this pending and I
guarantee you at this point google has a
pretty good grasp on Apple's portfolio
and knows what they need to do in
certain respects to avoid it there's no
way they're designing jelly bean or even
before that with ICS without not just
the pads that Apple's asserted but the
patents that they actually have in the
pipeline so you think you think the icon
rearrangement is not something that
Apple can move on I doubt it okay I
haven't seen a patent for that and I'm
pretty sure if they had one Google would
have known about it says I'm I'm pretty
sure they're smarter about it now so to
my and this action brings me my next
statement which is like I think that if
you look at what Samsung did in terms of
design both hardware design in terms of
what Android was doing with infringing
on this bounce-back patent which like
you know at the time we could I think
you know there was a point where we were
all like well what's the big deal it's a
bounce-back patent but now you see when
you when you start to get into when you
see a trial like this unfold and when
you talked about it enough and when you
see the different ways you could do it
you start to go okay i get it i mean i
don't think that patent is really that
important and i don't think people see
the bounce i don't think people see the
bounce back and identify that isn't
being an iphone behavior i think that
like things like bounce back and slide
to unlock exist in reality and that's
why they made sense what do is like
fifty dollar value someone yeah i mean i
mean some ridiculous i think it's
outrageous but but what I will say is
you know I look at the the Galaxy Nexus
has a product of avoiding copying and
there's a bunch of really good stuff in
there
like a bunch of good ideas new ideas
stuff that we didn't see in other phones
or variations that are like well it's
kind of like that but they tweaked it
and they moved it and it's actually
better for the end user and so I feel
like does this is that I mean is Apple
kind of getting what it wants here in
the sense that it doesn't want people
copying and is that I know we talked
about how bad this could be you know
with the precedent that it sets but
isn't it in some way if they can't go
after them you know for hey you put like
a color burst at the bottom of your list
doesn't it actually improve I mean
doesn't actually mean that people have
to innovate more well I did I don't I
don't know where this tweet was but
somebody who was obviously a fan of
Samsung tweeted to me good job APPL you
for samsung to innovate faster and
outpaced the iphone more which is true I
mean you know you can argue you can say
that the patent system sucks you should
have intellectual property but if you're
not allowed to do one thing that means
you have to do another thing and a lot
of times seeing what's been done and
thinking I have to come up with a new
idea forces you to come up with a better
idea and you know I think there's a lot
of that in Google's current phones I
think particularly jelly bean has a lot
of very different ideas but how an
operating system should work and I think
that's great I think it's for the best
for samsung to stop copying other
devices yeah you know I've I've forever
said you know Samsung is really great at
making cheap copies of other devices of
other things um and I think it's you
know Samsung is a huge company with a
lot of money a lot of clout a lot of
power a lot of influence and it's for
everyone's you know benefit if they say
we have to start really competing with
Apple we have to make devices that are
way better than apples devices and not
just take their ideas and improve on
them and iterate on them and that's me
that's say a pool will never be in this
go to position again I mean what they
had was Samsung with their early s1 and
s2 even some of their s too but most of
their s1 devices and variants of it was
something they will never have again
you'll never see these design patents
inserted again in in reality maybe but
you know it's it's it's a it's a week
claim because you had really a situation
like the perfect storm we had trade
dress you
had all these design patents you had
these early software patents on some of
the features that were lined up
perfectly with all these
first-generation kind s1 devices you're
not going to have that I mean you don't
have that anymore so so I mean Samsung
themselves they move past it they're not
doing it anymore right well not in this
not in this version this iteration of
the iphone yeah an Android competition
but if Apple if in september-october
whenever we see the new iphone they come
out and they're like we have a whole new
iOS for you you know when taken we've
read the whole thing then thinking five
years to get those patents right i mean
it takes a long time to get a patent so
I mean Matt you know Matt's also right
in that app you know Apple put up the
Steve Jobs stood on stage and said
here's the iphone boy have we patented
it and he met those applications are all
pending like we've applied for them
before and nobody knew what apple patent
381 list translation on a touchscreen
display meant until the iphone came out
they said that's bounce-back scrolling
right i don't think they can do that
anymore a that the climate is different
everybody reads the patent applications
on every tuesday and goes nuts over them
and be their not leading up to some huge
category killing device like the iphone
again and you know i think you even saw
that a little bit with the ipad right
they have the ipad design patents and
the jury said no you know that's not you
can't say another black rectangle
infringes that you can say it about the
galaxy s2 or the galaxy s it looked
exactly what yeah i fly which is
flagrant yeah i mean if a great idea you
want a woman of ear so where I where I
get confused I just remembered something
one one last point oh I have heard from
few people that Google believes jelly
bean solves all that's patent problems
with apple neither of us are you not the
unified not the unified search ah this
is a perfect segue into what I universal
searches I don't think nobody wrong it's
parently tried well yeah I'm gonna in
actually I lose ICS it was ICS that had
the universal search in his band and
then they updated with jelly bean i came
back in the market wait a second i'm
gonna to find out okay because i've got
a jelly bean device here yeah I don't
mean I don't know but I just already
searched I'm gonna search for knee lines
he
comes out well so while he's looking my
question is what what does Google do now
because I've seen even as this has been
happening a lot of people saying not
only is exactly universal search on this
there we go I mean no question Lee if i
search for ebay in the search window I
get ebay.com I like you searched for
ebay leave it well I want to find saying
that I'd have a nap and that you'd find
online yeah cuz that's what you got mean
I don't know so I just heard it hasn't
it has it link out to search the phone
yeah well I mean they you know they
changed the latest version of jelly bean
to fix it right i mean i don't know i'm
just saying I've heard anyway David go
ahead well so my i'm not i'm not gonna
don't nail me to the wall on the patent
thing I'm nailing you to the wall in
nilai you just got nailed already out
enjoy it just so gradually that nailing
um so what does this mean for google
that's my primary question like
everybody's talking about this as an iOS
vs android debate and it seems to me
that well you know google makes android
right i'm saying i don't i don't get the
sense that it is an iOS android debate
like the big thing was here big thing
here was devices and even the software
stuff well they can't think i'm looking
at this pad thing and it's like these
art where rounded rectangles right this
is touchable but this isn't you know
this is TouchWiz this is not android
those are not the things in android
they're concerned about which is why
when they go after HTC for whatever the
universal searches are the tap to dial a
phone number those are specific patents
yep and they're the nightmare in there
and they're try they don't want to go to
Google with a big case of all these
things i don't know they didn't they
what's that I said they could have been
they didnít clearly don't want you well
Google doesn't get paid for android
right nope so what would the damages be
if you didn't make any money off of the
devices that samsung sold or I think
they'd be more money if they could prove
damn just through ads and things like
that through Android right it's a much
more complicated than saying like hey
Samsung you made a phone it looks like
ours you yeah you I'll keep in mind or
right you made to any work I'll just
tried to Oracle just tried to do this
right i mean they pay sued samsung for
I'm sorry she's the suit Google oracle
suit google for copyright infringement
patent infringement on android and they
had to make up a damaged him out and
they struggled right they they they put
up a bunch of numbers the jury was like
we don't believe you um you know I think
this case changes a lot if it's Apple
versus Google and I think like matt is
saying
we're going to have it this good again
right there never gonna be will say this
copied us this away again they're going
to say this technical feature of android
copied us or this UI element of Android
copied us and Google can design around
it and that's fine but at this point now
you know there they have to go after the
core pieces of Android and they can't go
after these little these interface
tweaks or these hardware designs because
the companies are gonna be too smart to
like fall for them yeah LG google HTC
Motorola nobody's gonna create those
documents that Samsung created ever
again well it is i dissect ah harris
this was a I'm sorry Ben I you gotta you
gotta you gotta admit samsung should
have known a little bit better than to
you know blatantly I mean Paul Paul to
actually really a great point about this
in the podcast but on the verge cast a
couple weeks ago but it is it is one of
those things where they were like they
weren't like hey they're doing this like
we should do something better than this
they were like they're usually doing
this that hey designers they're doing
this can you do this yeah can you guys
yeah but it is and it is like the paper
trail is a mile long a 10-mile undred
miles long uh yeah if they just had said
it out loud maybe all set no I'm on if
they didn't have 141 pages of like how
to copy the iphone I bet you this jury I
have a feeling this jury may have found
differently well yeah oh yeah that was a
that was a nasty when I saw the thing I
mean I wasn't there also till down I was
closing argument up until that document
I was like Samsung might have a case
here you know that they did kind of
independently riff on some of this stuff
but when you saw that document and there
was just like here it is now how do we
make it it was like how any human is
gonna look at that and go I don't buy it
you know I don't I don't buy the Thames
like didn't willfully knowingly copy
what Apple was doing for personal and
personal gain and the you know apples
closing argument was he heard a lot of
witnesses you've seen a lot of stuff but
you should just look at the documents
and look at this time line of phones
before the iphone and phones after the
iphone and like use your head and I they
did you know like at so I'm saying I
think they decided apple walnut they
filled out the form i think the bigger
question for google is how do we stop
this and i think the bigger question for
Apple is how do we stop this like
Android isn't gonna go away
Apple can't sue androids I mean are you
sure I mean if they scare I'm sure I'm
just saying if they scaring off the
manufacturers and they start looking at
Windows Phone and going you know
actually we don't have to worry about
the stuff we can make really nice
devices and basically you know given all
the crazy licenses we're now paying it
would kind of cost the same here bb10 is
great that's good hey let's get ready
here people maybe but I don't think
you're honestly I mean you know windows
phone 8 big improvements I think the you
know we just ran a report today Chris
ran report is there room for a fourth
place and you see windows for
uncertainty creep in with market share I
mean I think that good I mean Google's
got to do they've got to get all their
ducks in a row and they have to ensure
they have to say to their partners yeah
with this is won't this won't happen
again we have Polina Josh even saying um
well they do you know that's what
microsoft says its partners you license
our software will indemnify you or at
least yeah well we'll pay the vast
majority of your bills if you if it's
our software that's the problem right
Google's never said that to anyone I you
know again onto the table everybody
thinks are paying for Quinn Emanuel to
represent these firms but that's not the
same as putting it on paper you know
right um but you know I think the bigger
I don't think androids going away I
don't think it should go away ja I mean
Josh even saying this thing over and
over again it's like the age of
partnerships is kind of over yes and i
think that's that's really sad and i'd
like to see i agree i just bring us back
to Google and Apple working together I
mean I I said this I mean above weeks
ago when we were talking about the maps
thing and I said you know it was so cool
that you could get the iphone the Apple
product with the slick UI with Google's
great maps product on it and uh you know
I feel like as every you know we talked
about this at length but as every one of
these companies tries to create its
entire the whole you've got to own the
entire ecosystem and end you do lose
something of like I think there's some
real value in having the variety and
having the choice of different you know
these people being able to partner on
things and I don't know if it's racing
google and an apple will end up there i
mean because if you look back to
microsoft and apple case apple got
spanked and it ended up in a license
agreement that you know for whatever
whatever was worth allowed both
companies to operate how they do now so
I don't think there's any indications
it's early I mean I don't think there's
anything that keeps Apple and Google
from eventually getting there I said I
think yeah I thought well I don't think
Google's gonna I don't think apples
gonna sue google well I think only way
those two are gonna end up in court is
if Google makes it happen and and and we
don't have any indication that they
could not get happening well like well
hey I mean Ray Ray are you sure because
google owns motorola and motorola suit
apple yesterday well they all deal with
each other and directly through motorola
what was the man I guess you all that
google versus at what was the suit it's
that it's a case the international trade
commission I mean it's like actually
there's there's news on this right now
now those are old patent so this is like
okay it's just kind of like amazing it's
like yesterday google sued good you know
I motorola can't do what Google doesn't
want it to do write their own google
owns motorola so google motorola sued
apple for two more patents google knew
about it and said it was okay and then
today Motorola's old case with two other
patents got tossed out by the ITC which
actually breaking news I'm like Matt and
I should go hit it but who cares right I
mean excuse like to get away hit the
news I I can just say can I just say it
is 925 on the East Coast on a Friday
night and um you know if you know we've
been talking about this legal stuff for
a while and by the way when we started
the verge Neil I was like I want to have
it I want to have killer legal coverage
of all the stuff that's going on my off
in technology we fell asleep we started
snoring I mean he didn't finish the
sentence and we were losing no butBut
nila is like I wanted me I want to do
this you know I want to cover this stuff
and we've been covering you know we've
had I think incredible coverage from
brian bishop and from Matt Neal I and
the whole team has pitched in but these
guys are really leading it because they
know they know what they're doing and
we're just pretending but right now our
traffic is like off the charts yeah i
mean i'm so chad chad is telling me by
the way that we have a ton of new
viewers because we are posters on the
families on the front page of reddit so
hello to hello to read it but we also
had to shut down the we also to shut
down the live chat on this also hello
also apparently and apparently 9gag was
somehow involved in this but let's just
for all the new people let's recap yeah
let's let's do make a bouquet
I'll give a quick recap so if you're
just joining us here's what's happening
in the world of tech hello Cincinnati
you're alive yeah hello Cincinnati uh so
the the verdict has come down in the
apple vs samsung trial just a few hours
ago the jury deliberated for about 22
hours which is not a long time they had
over 30 questions 700 ultimately 700
different answers they had to give in
places where you need to answer whether
or not a samsung had infringed on Apple
and they they predominantly i'd say i'd
say overwhelmingly found in favor of
apple this is a win for apple they're
awarding uh they've they've awarded
Apple 1 billion what is it now 49 1
billion 49 1 billion 49 million change
and change and and there are only a
couple of places where they didn't find
for Apple particularly in the whether or
not the the galaxy note 10.1 infringed
on the iPad does on the tab the notes
are sorry but the tab the galaxy tab the
note is the new one you know if they
just come up with better names that
wouldn't be a problem and and you know
Samsung and Apple have both issued
statements samsung the gist of their
statement is this is horrible for
American innovation and an apple
statement is this is great for American
innovation and we're glad that we're
glad that the jury saw that we had
obviously been been been ripped off and
and that's is it have I missed anything
in the update no it's about me that's it
I mean the question we've been talking
about it for the last hour so trying to
figure out trying to make sense of it
and actually neil has got a great piece
on the site if you haven't seen it it's
it's the title of the Apple decisively
wins Samsung trial what it means where
he breaks down kind of you know what
well what it means really so I have I
have a purely like procedural legal
question um how significant in all of
this is the willfulness stuff like if
they had found that you know you made
the galaxy ace which I've now decided is
the phone that looks the most like the
only one that you cited earlier as the
phone that I think didn't look like I
don't recall saying you like the
Gaussian I don't know what the problem
is the first
bookstore but so if they had found that
that infringe on the patent but couldn't
like did that it was somehow completely
unintentional and that was just the only
way to design a phone how different
would this trial have come out like how
important was it that sin IVs not
willful it was like an accident right
and especially going forward so how
important is it that these documents
existed saying and like look at the
iphone let's build that exactly and
that's like speculated so well no it's
the jury would come up with a number and
then the judge wouldn't be able to
triple it if she felt that you know the
elements of treble damages were met
right so I mean it's really important
because another judge has discretion and
also when the jury was coming up with
its initial number they're not supposed
to think about willfulness but apples
lawyers were like you know if you just
slap Samsung on the wrist they won't
change they did this on purpose look at
the documents they've got to pay the
real money so but it's not supposed to
factor into that initial decision no
it's it's a it's just out there to let
the it's a notice to the judge that we
decide it's willful now you take it from
here and just determine whether or not
you're gonna increase the damages it's I
guarantee you if the jury was allowed to
side willfulness this damage award to be
much higher yeah they're not though I
mean the judges are very reasonable and
triple damages or it's egregious
behavior that usually warrants that kind
of increase um but I'm not so sure the
code doesn't have a little bit of uh
just I don't want see justification
billet for samsung didn't behave itself
now the things he did not behave it but
she also but she also asked the Apple
lawyer if he was smoking crack so it
seemed I mean I don't say Apple Hayes
itself I don't know shit about anybody
was behaving them behaving themselves
look between the two companies they
filed over 2,000 objections in this case
which is like paperwork at three in the
morning that the judge in her style
really judge coves judge codes in the
robe at the office at three in the
morning like writing some I'm saying
they're filing the motions at three in
the morning and the in the courts like
electronic filing system and then the
judge and her staff of four shows up and
there's
new status oh I'm sorry so Matt your
suggestion is that the judge may want to
be vindictive towards Samsung because
they find out on any objection may want
to me one yeah I imagine this not her
take on it but but I mean that's what i
read from what you're saying like giant
asteroids weird it you're right though
there's this aspect you know you think
willfulness is like okay it's the acts
of the defendant if they did something
wrong they copied with bad intent then
they should be punished and maybe that's
triple damages what but what's a law
allows for is basically the judge is a
turn i mean the party's samsung's
attorneys if they acted wrongfully
tearing the litigation that's a factor
which is nuts really i mean yeah you
shouldn't impose a sanction on the
punitive damages essentially on on the
party because their attorneys are you
know sure well it's dry it's designed to
make them to settle I mean that the
whole goal of the structural nature of
the legal system is to make people not
go to court it's a say you're in a
conflict you're adults or sophisticated
billion-dollar companies you paying a
lot of lawyers you should be able to
come to an agreement and if your lawyers
are going to parade around saying you're
going to win and file two thousand
motions will be able to increase the
damages against you it's on us for sure
but it's each structure here's a little
update we just had a post go up that the
next step and apple vs samsung
preliminary injunction hearing on
September 20th so or what's that it's
actually a permanent injunction that
would literally be the injections
they're trying to give based on the
verdict it would wait this would be if
this would not be preliminary but this
would be no there's there's nothing
preliminary about a change that had lied
obably somebody tell dieter he's messed
up bad it's a wait what kind what would
the injunction be it you know right now
for instance the galaxy tab had the
injunction which is that now going to be
lifted but there could be injunctions in
place for these other products that were
found to infringe including s two
variants that exist right now I mean you
guys know I'm better better than I do
but there's s2 models being sold yeah
yeah there are models in archit there's
s2 all over the world I think cricket or
leap or somebody in the United States
just put out an s2 I mean
they got problems just announced it like
last night yeah boost whatever else does
one of those 2 4g God make a stop let
even be upgraded to ICS probably know I
hate Android such was good and um go
back to the iphone you say ah please
they'll update it damn it oh I'm sorry
but that's an important part of this
case I mean if you think about if all
Samsung came out of this width at the
very end of the day worst case scenario
was you know paying out between one
point oh five million and three million
dollars that's really not that big a
deal for I mean it's it's real money but
it's Samsung and they have a lot of real
money so but if they had an injunction
on products so the worst case in there
on the injunction side is that you get
injunction on all these models and it
really what percentage of these models
exist and if they exist now are they
getting exists in six months when the
injection would probably be in place
because they're going to brief this
thing for next two or three months
trying to figure out so i really don't i
don't see injunctions being an issue i
really don't see this case affecting
innovation affecting the market that
much because all the other products that
we're talking about that people care
about like the s3 or the nexus or in the
other case they're going to trial next
year and they guy go through all this
again I mean we're going to add that
we're gonna be back doing the same thing
next year for the Universal Search and
the and the let's just say for the
universal search yeah that's the that's
the one patna got the injunction after
the nexus 10 I mean mother 3 will just
be when they just be highly encouraged
to settle at this point I mean would yes
they should settle like I mean without
the question but again if Apple wants
like ridiculous damages that don't make
financial sense if they know they're
going to get hit with well it's going to
be you know if this was if this was
trade dress and all of these patents you
know handful of patents and the damages
were two point X million earth sorry
billion then what's it going to be for
the universal search I mean that I mean
how high could that especially aren't
they aren't they specifically going
after the Galaxy Nexus as adding more
patents in that case too yeah they are
this the reason that case but it wasn't
part of the injunction because it didn't
come out in time but in that case you
have other patents but just like this
the pulmonary injunction stage when they
got the nexus on the injunction doesn't
include all the patents in the case
because you know apple kind of picked
and choose the strong ones that it felt
were strong they had a best chance so
when i get to trial in next year on this
case on that case they're going to have
a whole slew of other pets but I they're
not design patents they're not trade
dress patents they're wonky software
patents and I'm not sure that's going to
really you're not going to be sitting in
this position they're not gonna lie i
think it's i think it's really this is
the case that kind of is the peak
possible opportunity for apple and i
agree that they should use that as
leverage to settle my problem is that i
just don't know I mean it's really no
one's settling this case on either side
without a blanket settlement it takes
into account every single case around
the world no SmartCompany no board of
directors is going to sign off on a
settlement that doesn't take an account
every single case and get rid of
everything right yeah it is so that's a
lot of money and i can't imagine apples
ever gonna accept a settlement that
doesn't have a huge amount of money
coming their way right but I mean but as
Apple just said in a statement this
isn't about money yeah I was a PR guy
well I know that is actually Katie
cotton is that had a basically out of
there but I mean go but but that the
statement is they're saying it's not
about money but apple doesn't need
Samsung's money isn't this about
competition I mean isn't this really
about saying like we want to we want it
we want people to if we have to have I
mean let's just say if we take them at
face value isn't this about them saying
we want to compete we want you to
compete with us fair and square and if
you don't compete with us fair and
square and if you heard us we're gonna
take you to court and we're gonna be
awarded damages because we deserve that
but we don't need your money are they
saying like we don't want to be stolen
from and if and for future companies if
you want to create a product that
competes with us great go for it but
don't steal from us or we'll take you to
court except that they went you know
they obviously went even Steve Jobs you
know and Tim Cook went to Samsung back
in 2010 and 2011 and said you know they
say these things but in reality there's
a dollar amount that will get them
away from the courtroom right but but a
dollar amount that Samsung didn't think
they'd want to pay yeah but they might
start to think it looks a little better
now well but but didn't we just say but
no but didn't we just say I mean what's
the impact of Samsung here is that there
the vibe is impacted like by the way
there may be a samsung phone called the
vibe to the summit I mean but the impact
is why also there may be one call the
impact I'm sure there's there are no
were a little over a billion dollars not
a little over a billion dollars and
fifty million dollar it's a little over
no it is I think it's a lot of money
five million more is not a big deal um
it's a billion dollars that's the impact
and Samsung vibing sense of I've it's
real fun is a real just silma case
you're wondering of course Samson Samson
already made also made like the galaxy
rant or something I mean they're all
know and then there was the smiley face
smiley face yeah it was just an emoticon
yeah but-but-but so what I'm saying is
like apple doesn't need their money no I
think they want a stunt samsung
presumably needs their money samsung you
know any very badly cuz there you got to
pay apple no but what I'm saying is
Samsung sorry Apple okay there are two
things they're saying out loud they're
saying one we don't want to be stolen
from and no they're just saying one
thing we don't want to be solid from and
so and so if that's what they're saying
I mean I guess they could clean I guess
they could they want to clean up on
damages seems like a roundabout way to
get it I mean they could have does it
seem likely they could have struck a
settlement that would be more money in
their pocket that seems likely to seems
like in that case samsung is it Samsung
of the guys saying we don't want to do
the settlement because we're only going
to lose you know a billion bucks here
two billion bucks and we can afford that
my crazy and that the thing that seems
really odd to me belabor the point no
but it also seems like from Samsung's
standpoint um you know money aside
because both these companies have a ton
of money and can afford to pay a billion
dollars yeah um but from purely just an
appearance standpoint you know the vibe
as it were on the from the vote for
samsung to come out it seems like the
best thing to do would have been to come
out and say listen we screwed up like
here are the documents that proved we
tried to copy the iphone but now we have
these other great devices we've moved
forward you know here's some money we're
sorry Apple and we have these great
devices we've innovated beyond the
iphone I would've been a good vine
that's just stolen it from that guy
right and now let's just all move
forward and be happy about it right and
it doesn't seem like it seems like
Samsung had nothing to get it what so
they're never gonna do that they're
never gonna say they were ever wrong
about anything what they're gonna do is
they're gonna either fight about how
there's a miscarriage of justice they're
gonna fight about how the patent system
is broken and apple owns a rectangle and
if they ever settle they'll say we're
delighted that we both can continue to
make our innovative product right a
samsung samsung is knocking samsung's
not gonna say samsung is not going to
their finish the trial where they've
been arguing about how right they are
and then Apple wins they go well we were
kind of wrong we were on they should
have done wrong too costly we were out
of line and we shouldn't have ripped off
they should have never done it I mean
they should have never done it I mean
hey look these companies should have
settled the judge has been telling them
to settle and what the jury has
accomplished is it it came up with a
business deal for them to to be a part
of right and if they had been smart
samsung would have been paying slowly
this billion dollars to Apple over the
past few years iterating its devices and
Apple would be funnier because it's
still silly to me that the jury returned
a verdict it's a slam dunk for Apple in
many ways wait huge victory that they
returned a verdict that was their entire
job well no but it's silly that Apple
and Samsung ever let it get this far I
mean it's so stupid but no but standing
I I think you're I think you're missing
something very clear which is Apple
presented an emotional case to them with
a lot of great evidence that struck an
emotional chord I mean I think we felt
an emotional response when we saw the
document where Samsung said do this take
this much more like this and I think
they knew at that point I think they
felt very strongly and after seeing what
Samsung produced whether or not they
discredited their witnesses that they
had an emotional they had made an
emotional point that would resonate with
the jury and that yep that that one is
the jury winning
much stronger for Apple then them
settling with Samsung settling with
Samsung in the midst of this trial I
think apple is saying there's stuff on
both sides we get it we want to make
things work what they've done now is
position themselves to the public and to
future and to future combatants in the
in the courtroom as the company that one
the company that was found to be right
the company that a jury of of regular
people said these guys were right they
got hurt and they should be awarded
something and I think that's like a much
stronger position to be in for Apple
than having settled in the midst of this
now they may decide in a week or two
weeks or in a month or whatever that
there's a settlement out there that
makes sense to them but i think the
emotional impact of letting these people
decide for them sounds a really big
message to like the rest look here we
are talking about it you know there's a
would we be as with the seem as
important how they settled settlements
happen all the time and these companies
make part of their businesses figuring
out how to get something from another
company keep making their product I mean
they do that all day every day but but
to hear someone say Samsung you stole
from Apple really vindicates them and
shows their position in the market now
we're like hey average people can see it
you know an average gary was able to see
we got ripped off and I think that makes
a powerful statement moving forward I
think it gives them a lot of leverage
they wouldn't have had settle was at
that point I mean it has to be Google
right they're not going to set a sweet
you only Google I mean the truth is
these are all about I mean you know the
design of the ACE and the S whatever the
vibrant aside uh this really is and you
know that the tab this really is about
the software and it is about two big big
companies trying to do the same thing
which is owned the smartphone market and
the smartphone ecosystem in the mobile
market and in general I don't see how
they can settle I don't I mean I guess
they could cut individual deals with all
these they don't care but it's either
they offered Samsung a deal that was I
think unique to Samsung I mean how
quickly could Apple by HTC yeah I mean
how much is HTC worth
I know what's the vow how what would HTC
cell ad hello mommy can we consult the
chart of HTC's value that I keep with me
at all times the kid you just get that
out your will wait don't you have an app
on your phone that shows the value of
all companies but I'm just saying I'm
just saying HTC is not apples problem
Samsung has been apples problem for real
I mean they really are a Monell if in
the in the in the mobile industry right
now they were the leading they were the
leader uh I would button what have you
just have you identified HTC's market
gap or something hey she sees market cap
just lost quote hundreds of millions of
dollars according to economy you mean
like right this moment from yeah I think
it's I think it's somewhere in the 30
billion dollar thirty billion dollars
Apple loses that in a seat cushion okay
30 billion is like Tim Cook has a very
big cock that's like like when
somebody's got a birthday at apple or a
regular employee they spend 30 billion
on their birthday party so so I mean I'm
just saying I don't agree with Matt I
don't think HTC is the problem and I
don't think it's google if Google's
driving Android if Google's decided
tomorrow to stop doing Android Apple
would have a problem they'd have to
worry about Microsoft again or rim but
keep in mind that Apple Microsoft's have
a deal they worked it out you know they
have an anti cloning agreement in their
deal so that you know like you're right
if Microsoft suddenly turns into a huge
player Apple can say you're violating
our anti cloning agreement but there's
so much at play between the two
companies that they would just adjust
the terms of the deal right and I think
that's really important you know I think
the Nokia case you know Apple a nokia
nokia suit apple right and then they
settled like Apple was a huge threat to
nokia they're using a bunch of their
patents and I figured it out Apple paid
the money and I I think ultimately this
comes down to Apple might have been
strident they might have been going for
this victory but Samsung decided at
every opportunity to not pay the money
and maybe maybe apples demands are too
high but Samsung made a choice they
they're they're also went to the jury
they said we're gonna win and they did
not win they lost like they this is
absolutely categorically a loss for
samsung yeah I exactly why that
Samsung's not ask or apples not asking
for thirty bucks a phone anymore that
was two years ago
I bet it's significantly lower I mean
it's still high you mean for these
phones are for funds going forward for
just general a license agreement under
any sort of agreement with because
they're doing it they're doing across
license for the whole portfolio I mean
what are they but what are they
licensing at this point in an ICS device
it doesn't matter as far as Samsung's
concerned they're just get an entire
free ride on Apple's portfolio and put
in Applegate's Samsung's portfolio so no
matter what happens from issued patents
or current patents that are pending they
there they don't have to worry about
being at all so you're saying you're
saying that the agreement the settlement
here is you pay us money we but you know
we both agree to not see each other yeah
no one's got to settle otherwise I mean
that's that you got to have some sort of
assurances that you're not going to get
nailed again so when they were so dizzy
your is it your perception that if they
were in settlement talks that they what
they were talking about is we've got a
zero this out like we've got to make it
so that we're not going after each other
or when they were in settlement talks
was it was it Apple is saying hey we
want you to pay as XY and Z and we'll
evaluate and there's a slide we have
from two years ago that said Apple
presenting to Samsung and it says Samson
chose to embrace and imitate the iphone
we worked hard on it we would have
preferred you got a license in advance
cool you know like these talks have been
happening and that's I'm saying this is
underreported in this entire case is
that they've been having constant talks
about settlement I mean what's what's
funny about it is that if there had been
any inclination that Samsung was going
to copy let's say really blatantly copy
apples product or if Samsung had come to
them and said like hey we're about to
release this an applet seen and said
you're ripping us off you're gonna have
to pay a license on that or you're using
our you're using our IP or patents or
whatever they would have just changed it
wouldn't they I mean they would have
just said yeah you know it's not worth
the trouble why don't we just tweak this
they wouldn't have paid it would that
who knows man I mean maybe they would
have designed her out but right way you
wanna really what exactly which is what
they should really didn't immediately
because they had these phones I mean
when they went to Samsung it was just
the galaxy s really and you know really
I don't think much these I neurons came
until I mean
it started peeping I guess I started
creeping up after that but I mean oh so
you're saying you're so I'm sorry you're
saying earlier I don't know the timeline
exactly but earlier in this process that
when the s original ass was out Apple
came just like immediately after they
said they said you're infringing here's
what you needed we need to settle this
right yep and I said no and then they
went on to make well I mean the ass was
pretty egregious yeah I think they did
start making changes after that physical
design changes i don't i don't think i
started making software changes right
they kept they can work on that died a
big document I don't get it they're like
have you seen the latest update the iOS
update we got a 10 more pages they
change the icons a little bit we gotta
we gotta fix this all right I should
happen top I think I know I agree to
wrap up I think we've talked this thing
to death so here's so just so if you
have joined us or are not brought up to
speed I'm just gonna recap this and then
we'll talk about what happens next you
know very briefly jury found for Apple
predominantly for Apple in the apple vs
samsung trial they've been awarded at
this point the jury has awarded them 1
billion 49 million dollars in damages it
it is possible that that could be
increased by the judge or that apple
would well it's about if possible that
can be increased by the judge and I'll
leave it at that they deliberated the
jury deliberated for about 22 hours and
it was I mean I think a very speedy and
no one was expecting this to come in
tonight as far as I know certainly I
don't think Matt Matt Neal I our legal
experts here we're definitely not like
no sitting around waiting if waiting for
it to happen and and there's going to be
an injunction hearing on September 20th
in the case samsung is going to fight
this though I mean they're appealing is
the point right yeah yeah so I mean
there's more to come but this is this is
the Stata that the world for a long time
yet the next big question is whether
Apple can get injunctions we'll find out
the next two or so weeks with appliquéd
injunctions against the galaxy s2 which
I believe is the only product that's
still on sale from this case and then
from there it's Samsung as to decide
what to appeal and the court has to
decide what appeals
take right that's right well I think it
goes without saying that we will be
covering this intently I mean what else
we do is look at my living nightmare
will contain if you like the towels a
waking nightmare will go on for really
light and indefinite in a period of time
I would say here he loved for years but
but but I will say that this wave this
swell has it will greatly diminish mean
we've been covering this like crazy
there been so many developments in this
we've been live blogging it this well
has now dissipated and the surface going
out I don't know what this water I mean
unless unless something crazy happens
like here we go water analogy it's like
ten o'clock on friday it's been a long
week just want some water I just want
someone thirsty okay but uh but you know
we'll keep tracking this obviously just
keep keep your eyes on the verge calm
for more action and I you know you know
I want to thank David Pierce Ross Miller
who was on for like five minutes and
said one thing and they're like I'm at
meharry and an Eli of Patel audience
Ryan on the ground yes let's just say we
could not overstate how clutch brian has
been in this reporting he's been in the
courtroom every day live blogging this
thing putting together story is just
incredible incredible reporting from him
very happy to have on the team and when
I see him soon I'm going to kiss him on
the mouth full on the mouth open mouth
tongue no big deal we're all were all
grown-ups here and he's earned it really
when you think it's very possible that
he is chasing a juror to their house
right now yeah well they suck up they
snuck out the back uh yeah the jurors so
really in case you're running the jurors
knock out the back we were not gotten
any statement from the jurors or the
attorneys right now we'll be working on
that and and will obviously have a post
up when you see it thanks everybody here
for who's been who's tuned in especially
all the new redditors we love you and
you can come anytime you want come back
anytime you want and we will be back on
the verge casta this coming thursday as
always so that's a show thanks so much
and and now go have a drink for the love
of god have a good weekend yeah
you
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