Samsung Has Been Dealt a Mighty Blow
It is not news that Samsung and Apple have been engaged in a bitter legal battle around the world. It is also not news that in the U.S., Samsung has lost, and has lost big. What IS news is that Samsung Electronics is surprised, and has reacted in the way as reported in The Korea Times.
Maybe this shouldn’t be news, either. But it is. This is the same company that has played displayed hubris in the past. In 2011, Samsung forced Naver.com to eliminate a blog critical of the Galaxy II smartphone. Korean chaebol have often treated regulations with blatant disregard. Maybe, some of that is changing. Hanhwa’s CEO was sentenced to a 4 year jail term in the very recent past. However, as is reported here, not only does this episode damage Samsung’s reputation, but it may have some real business ramifications. Not only may certain products be restricted from being sold in the U.S., but the jury has awarded $1Billion USD payable by Samsung to Apple. And its worse: the judge can TRIPLE that amount.
Another Example of Korea’s Growing Pains
As this blog has pointed out on numerous occasions, Korea has now joined the first world. There is little doubt about that. However, there is also little doubt that other aspects of Korea’s behavior have not kept pace with the global community. That Samsung has attempted to use the same mode of operation in the U.S., that Samsung expected to get away with this behavior, and is surprised at the U.S. justice system’s decision, all serve as a painful (and potentially very expensive) example to all. Just ask a Samsung Electronics’ shareholder. That person is 7% poorer today than he/she was just 72 hours ago.