Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Apple Inc. (AAPL) v. Samsung: Is South Korea Verdict a Hint?

Apple Inc. (NASDAQ:AAPL) has been fighting Samsung Electronics Co. Ltd. in courtrooms all over the world over claims of patent infringement being thrown at each other – and Apple has come out on top in most of them. Well, except one. And as the U.S. version of this intellectual property battle is sitting in the jury deliberation room, a court sitting across the Pacific Ocean has handed down its own decision on a very similar case – and it’s essentially a case of home-court advantage.

Apple Inc. (AAPL)

Apple Inc. (NASDAQ:AAPL) had won eight “neutral-site” court decisions in in eight other courtrooms in eight other countries in its battle with Samsung, which makes smartphones using the Android operating system by Google Inc. (NASDAQ:GOOG). Now, a South Korea court has provided its legal stand – and as expected, the court gave a victory to its home-country company, Samsung Electronics Co. Ltd.

The court ruled that both companies infringed on each other’s patents and order a partial ban on products, though Apple Inc. (NASDAQ:AAPL) faced a stiffer penalty. Apple was ordered by the court to remove the iPhone 3GS, iPhone 4, iPad and iPad 2 from South Korea stores due to infringing on two of Samsung’s five patents that were in dispute.  On the other side, the court found that Samsung infringed on one of Apple’s patents – involving the ‘bounceback” feature, which the screen seems to bounce as a user comes to the end of a file – which results in the ban of sales of the Samsung Galaxy S2 in South Korea. Also, the two companies have to trade awards – Samsung gets about $35,000 from Apple Inc. (NASDAQ:AAPL), while Samsung pays about $22,000 to Apple.

The current jury decision in the U.S. may likely farther-reaching implications in the tech industry that virtually all other court decisions combined, simply because the U.S. is currently the largest smartphone market in the world (though places like China and India – each with about 1 billion people – are gaining steam). This decision could fall one of three ways – either Apple wins outright (an expert says that in 75 percent of patent cases, one smaller victory for a company usually means winning the whole war), Samsung wins outright , or there is a mixed verdict (similar to South Korea – which is only likely if the jury decides to go through and pick this case apart point by point).

Considering the size of the U.S. marketplace and the fact that these two companies make up about 70 percent of the market share for smartphones in this country, the implications for this decision are hard to even measure, much less fathom. no doubt many investors in Apple Inc. (NASDAQ:AAPL) stock – including Julian Robertson of Tiger Management – will be watching closely, as this verdict is expected sometime in the next week, just before the anticipated Sept. 12 unveiling of new Apple products – including a new iPhone.

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.