Recent Apple v. Samsung court ruling threatens small businesses

In what might seem to be another bump in the road in a longstanding patent feud between Samsung and Apple, the Federal Circuit's U.S. Court of Appeals just cut the damages payment owed to Apple from $930 million down to $548 million. On the surface, the ruling is a win for Samsung, but it comes with a huge threat to small business owners. 

Apple's attorneys had argued that Samsung had infringed on aspects of Apple's patented design features, like the iPhone's "rounded rectangle" shape, while designing their own smartphones, and that Samsung should be liable for full profit damages for the infringement. According to a statement from Samsung, the awards should have been limited to them infringing the "article of manufacture," as their phones had disparate technical features and interior designs to Apple's. Though the court cut back on the initial damages it awarded Apple from the case, the general precedent set by the case stands in favor of full profit liability for design infringements.

Harry Alford of The Hill described the precedent set by the court as "extremely troubling," because "if companies can patent something as straightforward as 'rounded rectangles,' and can potentially sue for the infringer's profits even though the shape is likely unrelated to the features that prompt customers to actually purchase a product, then the sky is the limit for predatory litigants."

While huge corporations like Apple and Samsung can take the hits to their revenue to slug it out, a small business owner could easily be put out of business for infringing on a design he didn't even know existed to be infringed on, and aspiring entrepreneurs might be hesitant to bring their ideas to market for fear of accidentally infringing on another company's superficial design aspects.

Regardless of where you are as a company it's always good idea to get in touch with a qualified business attorney early on. A good lawyer can make sure your rights as a business owner are always protected.

Categorised in: Intellectual Property Law

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