Samsung’s Court Loss To Apple Is A Loss To The American Consumer

Sep 3, 2012, News

An unprecedented court decision in the last week rocked the technology and business worlds. The patent case between Samsung and Apple was one of Apple accusing Samsung of outright, intentional copying of Apple technology, and breaking patent law.

Patents have always been thought of as something necessary and beneficial for those who invent technology, keeping giant competitors from outright copying their technology and then blowing out the small inventor with their sheer force and might.

You could look at this case between Apple and Samsung and say it’s good that Apple won because they invented the iPhone and other companies shouldn’t be able to copy them if they created a patent on it. But as it always seems to be the case in life, it’s not that black and white.

You see, the patent law arena has spiraled downward into a circus show, wasting taxpayer dollars, and also hurting the American consumer with higher prices on consumer goods because of the Billions of Dollars in attorney and compliance costs.

What is actually the case many of the times is that a large company makes a new product, like a smart phone, and then pursue patenting every single feature they can think of. It could literally be a patent for the curves around the corners of the phone, the size of the screen, the patterns on the back of the phone, or even the location of the buttons below the screen.

Their goal in doing this is simply to slow the competition down with extra legalities, patent research (of what they can and can’t make), additional legal costs, etc. They know the competition will find loopholes and ways around the patents to create their own unique products, but it at least gives them a leg up on the competitors.

It will lead to fewer choices, less innovation, and potentially higher prices,” said Samsung in a statement following the verdict. “It is unfortunate that patent law can be manipulated to give one company a monopoly over rectangles with rounded corners, or technology that is being improved every day by Samsung and other companies.”

Quote source: RT News: Samsung loses to Apple in US court, injunction looming

And this case was a WHOPPER, with the jury serving Samsung a $1 Billion penalty to be paid to Apple…they will immediately appeal the case, of course, but even if they do end up losing, it won’t hurt the company much, as they have over $15 Billion in cash reserves!

Mark Cuban’s Suggestions On Patent Law

Mark Cuban, billionaire owner of the Dallas Mavericks, and member of the cast on ABC’s hit show ‘The Shark Tank‘, is no stranger of causing a stir and being opinionated. He recently posted his own thoughts on how he thinks patents and patent law are killing American ingenuity through what’s happening today, what he calls a “Patent Arms Race”.

In his Blog Maverick post, My Suggestion on Patent Law, Cuban proposes we end all software patents, and end all process patents. He goes on to explain that he believes some of the benefits of doing so would be:

  1. Reducing court room costs associated with process and software patent litigation…which is taxpayer money saved.
  2. Improving the efficiency of the Patent Office.
  3. Ending the ridiculousness of the Patent Arms Race of today.
  4. Patent costs cost jobs, and eliminating these would help create more jobs, or at least make jobs more stable.

One thing he also points out is that with the process and software patent laws in place today, and with the way big companies use them to their advantage, a company today could be sued for almost anything. When you go to make a new product, for instance, a hoodie if you’re a clothing manufacturer, you have no idea of what all patents exist on little features within your hoodie, and it’s impossible for you to know the next patents to be issued.

So you’re always at risk, as the business owner, for being sued for breaking someone else’s patent, usually for things you didn’t have a clue were actually patented.

It’s also easier and less expensive for you to usually just pay the people suing you to go away than to incur all the attorney costs involved in defending yourself against them.

Mark Cuban Lambastes Scott Jordan On The Shark Tank

In another instance, on ABC’s The Shark Tank, Mark Cuban lambasted business owner Scott Jordan on how he had patented some silly process or technology of putting a hole inside a jacket that allows you to hide your speaker cable from your device up to your ears.

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