Samsung shares fall $12bn after Apple patent ruling
Seven per cent fall after California court finds in favour of Apple in long-running patents fight
SOUTH KOREAN electronics giant Samsung has dropped seven per cent from the price of its shares - wiping $12bn off its market value - after a US court found in favour of Apple in the two firms' long-running intellectual property dispute.
A jury at the federal court in San Jose, California, ruled that Samsung had infringed six of Apple's patents, copying key features of the iPhone and iPad when developing its own rival products, reports Reuters.
Samsung was ordered to pay $1.05bn dollars in damages and could face a ban on selling some of its biggest products. The firm must wait around a month for a final ruling on whether it must stop selling items.
Samsung, the world's biggest tech firm in revenue terms, is the market leader in the smartphone field pioneered by Apple but the news caused its stock to fall further than it has in one day for four years. It says it will contest the verdict.
Analysts believe the tech firm will lose four to five per cent of its earnings this year to increased patent provision because of the ruling. One hedge fund manager based in Hong Kong told the agency: "Both companies are in the midst of a squabble but I don't think it's a structural negative for Samsung.
"At the end of the day, as Forbes reported recently, Samsung has 65,000 patents versus 9,000 for Apple. Furthermore, Apple relies on Samsung for the processing brains of their phones. I sold Samsung four months ago but am watching the stock closely now."
Earlier this year, a UK judge dismissed Apple's claims of copyright infringement, ruling that the Korean firm's products were not as "cool" as Apple's and therefore were not copies of them.
Gallingly for the California tech innovator, he required Apple to run adverts on its own website in the UK and in national newspapers saying that Samsung had not copied its products.