Archive

Reuters blog archive

from Alison Frankel:

New class action: Real victims of Samsung infringement are consumers

Once again, we are reminded that defendants underestimate the creativity of the class action bar at their own peril.

Last week, the firms Reese Richman and Halunen & Associates filed quite an interesting class action complaint in federal court in San Francisco. The case asserts that Samsung's infringement of various Apple patents in its mobile devices - as established in a jury trial in federal court and in a proceeding at the U.S. International Trade Commission - has injured unwitting Samsung mobile device buyers who believed they were purchasing non-infringing products. According to the complaint, the resale market for Samsung devices has been hard-hit by infringement findings against the company; the suit claims that Samsung owners are actually in danger of violating the Tariff Act of 1930 if they attempt to resell infringing tablets and smartphones.

As you may recall, Samsung is on the hook to Apple for more than $900 million in damages after a partial damages retrial in November of its first round of patent infringement claims against Samsung in San Francisco federal court. The purported nationwide consumer class action actually claims far more than that on behalf of Samsung device purchasers. Under one of the suit's causes of action, the class wants Samsung to repay the entire cost of the infringing mobile devices to the consumers who bought them - or at least the lost value consumers have realized as a result of Samsung's infringement. Under another theory, class members assert that Samsung must disgorge to them all of its profits from selling infringing devices. That's a lot of money: According to Apple, Samsung took in $3.5 billion in revenue from the sale of almost 11 million infringing devices.

So what are these theories that give rise to such outsize potential liability? The complaint claims breach of warranty on behalf of Samsung purchasers nationwide, citing state consumer warranty laws. It also claims violations of New York and New Jersey deceptive trade practices laws on behalf of the nationwide class. The New York law, according to the complaint, provides for at least $50 in statutory damages to every purchaser of an infringing device (or, if Apple's sales tally is correct, $550 million). The New Jersey law allows consumers to seek damages based on arguments that they wouldn't have bought the devices at all if they'd known of Samsung's infringement. But that's not all: The suit also alleges unjust enrichment under California, New York and New Jersey statutes, demanding restitution of the full purchase price of the infringing products. (In addition, the complaint alleges California unfair trade practices laws on behalf of a California-only class.)

from Counterparties:

A look at tech heading into CES

While most of the country works its way through a deep freeze (and really - it's just ridiculous, this cold), it's a bit more temperate in Las Vegas. That's where investors and enthusiasts - ok, 150,000 of them - are gathering for the annual Consumer Electronics Show, which features the usual healthy dose of tech bigwigs (Yahoo's Marissa Mayer, John Chambers of Cisco) and tons of others over the next few days.

One of the more interesting-sounding addresses involves innovation in mobile, where execs from AT&T, Qualcomm and Ericsson will talk up the ongoing growth and changing nature of the mobile markets, a sector that's bound to keep exploding around the globe.

from Breakingviews:

Apple patent case exposes trade arbiter’s flaws

Photo

By Reynolds Holding
The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

 

A patent ruling against Apple exposes serious flaws with America’s trade arbiter. A U.S. ban on imports of older iPhones and iPads is a big win for rival Samsung - and yet another example of the International Trade Commission being too quick to block products on dubious grounds. President Barack Obama has proposed tightening ITC standards. He could start by nixing this decision.

from India Insight:

Samsung Galaxy S4 lands on Bangalore, hundreds get in line

Photo

By Sayantani Ghosh and Supantha Mukherjee

"I'm very excited. I've been waiting a couple of hours; I couldn't get any sleep last night," said Arif, an employee of UK retailer Tesco. He was near the front of the line of hundreds of people to line up at the UB City Mall in Bangalore to buy the new Galaxy S4 smartphone.

The phone went on sale at the Samsung store on Saturday, and Arif waited for about two hours for the privilege of spending 41,500 rupees, or about $763, on the new model, which comes with a 5-inch screen and 13-megapixel camera, and runs on Google's Android platform.

from MediaFile:

Building the perfect smartwatch

In my tech predictions of 2013 I somehow missed that this would be the year of the smartwatch. But now the most established names in tech are realizing the future may be all in the wrist.

Smartwatches are shaping up to be the Next Big Thing about a decade after they were offered to the public and met with a collective shrug. Timing can be everything in tech. Microsoft marketed a stylus-enabled PC in 2001, but the tablet concept was a nonstarter until the iPad. Even the e-reader had a first life as The Rocket -- before the dot-com boom. But it was Amazon, in 2007, that reimagined the device and took the brass ring.

from MediaFile:

How tablets can save the PC

Now this is not the end. It is not even the beginning of the end. But it is, perhaps, the end of the beginning.

‑ Winston Churchill

These are tough times for the personal computer: The 30-something device that everyone used to covet is being crowded out by younger objects of our affection. Time for a makeover.

from Breakingviews:

Where did Apple’s missing market value go?

Photo

By Richard Beales
The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

Mr Market has slashed Apple’s market value by $260 billion in six months. Meanwhile, the combined worth of a wide group of smartphone and tablet rivals has added less than half that. If investors think Apple is fading, the competing Android complex could be worth far more - to someone.

from MediaFile:

Back in Blackberry

With a brand-new smartphone – and a new brand – BlackBerry (neé Research in Motion) has embarked on a critical reboot aimed at restoring the fortunes of the company that sparked the mobile revolution.

RIM has been left for dead. For years it hasn't been able to shake off the stink of irrelevance as the iPhone proved that apps were more important than a physical keyboard, and that mobile “push” e-mail wasn't rocket science. It endured brand-damaging outages to its private network while competitors crowed that their reliance on a public network was far more stable.

from Global Investing:

Hyundai hits a roadbump

Photo

The issue of the falling yen is focusing many minds these days, nowhere more than in South Korea where exporters of goods such as cars and electronics often compete closely with their Japanese counterparts. These companies got a powerful reminder today of the danger in which they stand -- quarterly profits from Hyundai fell sharply in the last quarter of 2012.  (See here to read what we wrote about this topic last week)

Korea's won currency has been strong against the dollar too, gaining 8 percent to the greenback last year. In the meantime the yen fell 16 percent against the dollar in 2012 and is expected to weaken further. Analysts at Morgan Stanley pointed out in a recent note that since June 2012, Korean stocks have underperformed Japan, corresponding to the yen's 22 percent depreciation in this period. Their graphic below shows that the biggest underperformers were consumer discretionary stocks (a category which includes auto and electronics manufacturers). Incidentally, Hyundai along with Samsung, makes up a fifth of the Seoul market's capitalisation.

from Breakingviews:

Apple means (almost) never having to say sorry

Photo

By Reynolds Holding
The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

Being Apple means (almost) never having to say you’re sorry. The tech giant apologized to customers for releasing a flawed maps application. But it bristled at a UK court order that the company publicly admit as false its accusation that Samsung Electronics had infringed on the iPad. Now the British judges are demanding strict compliance.

  •