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In Wake of Big Court Win, Brace for 'Apple Tax'

If Samsung and others must pay for licenses, consumers could pay more, too

By Mark Russell,  Newser Staff

Posted Aug 25, 2012 8:20 AM CDT

(Newser) – Apple's patent victory will cost more than just the $1.05 billion judgment against Samsung—expect non-Apple smartphones to cost more as manufacturers begin to pay Apple for a variety of new licenses, reports the Wall Street Journal. Samsung was found guilty of infringing on seven patents, including those covering common features such as the ability to enlarge images with a tap and the look of icons.

"There may be a big Apple tax," says one analyst. "Phones will be more expensive." The question is how much more. It's possible Apple might not license some of its patents at all, considering the feature part of its "unique user experience" and forcing competitors to figure out different approaches. In the long run, creating those workarounds could make Samsung and other competitors stronger, but for now insiders say Apple just grew more dominant.

Samsung Electronics' Galaxy S III, right, and Apple's iPhone 4S are displayed at a mobile phone shop in Seoul, South Korea, yesterday.
Samsung Electronics' Galaxy S III, right, and Apple's iPhone 4S are displayed at a mobile phone shop in Seoul, South Korea, yesterday.   (AP Photo/Ahn Young-joon)
A man walks by Samsung Electronics Co.'s headquarters in Seoul, South Korea, Friday.
A man walks by Samsung Electronics Co.'s headquarters in Seoul, South Korea, Friday.   (AP Photo/Ahn Young-joon)
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COMMENTS
Showing 3 of 18 comments
Tology
Aug 26, 2012 11:57 AM CDT
Apple is trying to create a monopoly.
cragel
Aug 25, 2012 10:44 PM CDT
Wow, this drivel is laughable. Have most of you even read the pieces on the legal merits of the case? Apple has used Samsung components for years - whether custom made for Apple or parts on the open market. The price is negotiated, including any intellectual property issues and commerce goes on. This suit has nothing to do with conventional commerce. It has to do with stolen property. Sammy had the opportunity to work these issues out with Apple before the suit and took a calculated risk. The bigger risk is to Google and the whole Android Ecosystem. Apple has claimed that every Android product, at its core, uses stolen intellectual property. That's the meat of the story. Where future Android products include a chunk of change for their intellectual property or the future iterations contain self-developed work-arounds remains to be seen You can myopically view it as an Apple Tax or what it really is, payment for intellectual property, just like a great number of components in any smartphone, there is a cost to use a patent or forty. Doesn't matter. Apple deserves to be compensated for it's intellectual property - as would any inventor.
keith44
Aug 25, 2012 1:13 PM CDT
It may not be quite as easy as Apple would like to think.Samsung supplies between 26% and 30% of the essential components for iPhone,probably with some sort of patented hardware.It will be interesting to see all the patent/contract battles that will now ensue if Samsung ups the price of the components and Apple attempts to outsource.  In fact,Apple do not manufacture any components. (source:The Economist,Aug 2011)
 

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