The big news is still Apple vs. Samsung. The lead story here from Groklaw is very interesting because it credibly identifies reasons why the jury’s verdict was flawed legally and why that will give Samsung the right to appeal. The key was the lack of time the jury took to reach its verdict given the complexity of the case and the jury instructions and the blatant errors that the jury made in its findings.
The jury contradicted the instructions in reaching damage assessments that were to based only on actual damages, based on jury comments after the fact that indicated the jury’s verdict was punitive in nature. Moreover, the jury awarded Apple compensation twice for points where there was no infringement and had to go back and strike these from their verdict. Finally, the Galaxy Tab was the only Samsung product subject to injunction before trial. Yet inexplicably it was the only product not to be found infringing. To me this suggests the jury is more familiar with and cared more about the iPhone and made a subjective decision based on this.
As I said in the last daily letter, I don’t think that this case is a game changer by any stretch but I am also beginning to think it may not stand on appeal. I highly recommend reading the Groklaw piece on this.
Interestingly, Samsung’s shares lost a multiple of the jury’s award in price action earlier today in Aia. This doesn’t make a lot of sense from a pure valuation perspective unless you think this is a harbinger of future verdicts. That is unlikely given the pace at which the mobile marketplace moves. I guarantee you these patents will be relatively harmless come one or two iterations in the product cycle. Apple will continue to sue. But that won’t change Android momentum I suspect.
It’s obvious that British courts should defend firms’ patents – Telegraph
“In any case, discovering the ‘obvious’ is the easy part. It is the time and money spent on researching and developing it that is risky – especially if a free rider can then come along and simply copy your idea. For Dyson, like Apple and many other technology companies, research and development is the lifeblood for future success. It is through R&D that new ideas are possible. Dyson spends £1.3m a week on it – but we hedge our bets on the notion that if we come up with the next big idea the courts will protect it robustly. Those who do not play by the rules are made to. Cases like the Vax case causes designers to lose faith in IP rights.”
Samsung shares drop $12 billion after Apple’s court victory | Reuters
Exclusive: Apple-Samsung juror speaks out | Apple – CNET News
“Manuel Ilagan, one of the nine jurors who ruled in favor of Apple, tells CNET he thought Samsung’s internal e-mails about incorporating some of Apple’s technology into its devices, and the evasive way Samsung executives answered questions, was damning.”
Jury didn’t want to let Samsung off easy in Apple trial: foreman | Reuters
“Jurors felt Samsung Electronics Co Ltd should pay significant damages in the landmark patent trial against Apple Inc, even though they viewed Apple’s demands as too high, according to the foreman.”
Was Samsung’s defeat its best advertising campaign to date?
“People out there are not focused on processors, RAM, features, etc. Apple devices are popular and considered “the best,” and people tend to follow such technology trends. This case could simply be creating major confusion amongst users. Now we will have a substantial amount of users believing they are simply getting a “Samsung iPad” for a much lower price.”
Counterintuitive: Did Samsung emerge a winner? — Tech News and Analysis
“Observers like Robert Scoble and Jeremiah Owyang said Samsung may not be a loser in its patent fight with Apple despite a $1 billion verdict to the contrary, Samsung may have come out ahead even with the court loss.”
Apple’s 7.85-inch iPad will in fact be named ‘iPad mini’ – report
“Though it will be known as the iPad mini, only the name “iPad” will be printed on the back, much like various iPod models only say “iPod,” according to a source who spoke with Macotakara. The 7.85-inch iPad is rumored to feature the same 1,024-by-768-pixel resolution display as the currently available iPad 2, but at a size smaller than the regular iPad’s 9.7-inch display.”
“Only after the next-generation iPhone is out the door and on sale will Apple announce the smaller iPad it’s been working on. That device, which is expected to have a display of less than eight inches, will be uncrated at a second special event, which sources said is currently scheduled for October.
Some have already speculated that Apple would likely separate these two iOS device announcements, particularly since both are likely to be blockbuster events.”
United States
The Gold Standard and the Myth of Price Stability – CNBC
“if you are going to attempt an intellectual assault on the gold standard, you can’t just point to price instability in the 1920s. The Austrians have been here before you—and they understand the period much better. And, more importantly, the value of a gold standard does not hinge on price stability in the first place.”
US Garbage Economic Indicator – Business Insider
The Bonddad Blog: In which I trash a garbage indicator (literally)
“Had the graph compared apples to apples, there would have been a huge increase last year balanced by an equal decrease this year. If you’re not going to do that, then you have to wait to see how the entire third quarter plays out – which would deprive you of the trashy sexy graph of DOOM!
So here’s the moral of the story of the alleged trash indicator: garbage in, garbage out.”
US investigates UniCredit over sanctions – FT.com
“UniCredit also said that the investigation concerns HypoVereinsbank (HVB) – which was not mentioned in the public documents. HVB was a German bank acquired by UniCredit in 2005 that now operates as UniCredit Bank AG.”
The Consumerist » Why Do California State Employees Need $423K Worth Of iPads?
Foreclosure-rental bonds come to market without ratings | Reuters
“The first so-called real estate owned (REO)-to-rental securitizations in the United States may go ahead without credit ratings, as agencies ponder how to assign grades to the new and potentially risky products.”
Look at All the Civil Liberties Democrats Pretended to Care About in 2008 – Hit & Run : Reason.com
Law Professor Says One Of Romney’s Tax-Avoidance Schemes Was Illegal – Business Insider
Europe
Dutch Leftists Ride Austerity Anger to Poll Lead – Business News – CNBC
“The party’s promises to protect state benefits appeal to lower income, left-wing voters who have been hit by budget cuts.”
Y mientras, la última burbuja inmobiliaria estalla en… ¡sorpresa! – Valor Añadido – Cotizalia.com
Here’s a Spanish article on the situation in the Netherlands where we are witnessing a steep drop in house prices. The Dutch have a general election coming up to replace their caretaker center-right government which collapsed earlier this year. Right now it looks like a big win for the Socialist, a party of former Marxists and the most left wing of the major Dutch parties. The macro view here is that a burst bubble in Holland has caused a deficit to open up as demand and austerity has caused even more pain for households, who are now rejecting austerity as a policy measure.
Britain
Average cost of buying home falls to lowest in 15 years | Money | The Guardian
“Halifax data shows typical UK mortgage costs buyer 26% of take-home pay, compared with 48% at peak levels in 2007”
Other links
China: Broken Dreams – 101 East – Al Jazeera English
“Despite the country’s rapid economic growth, many young Chinese are growing disillusioned as they struggle to find jobs.”