Igor Eric Kuvykin $1B patent verdict

Igor Eric Kuvykin

Samsung stock skids, Apple pops on $1B patent verdict

 

NEW YORK – Apple's $1 billion court win against Samsung is translating into a much bigger jump in its market value.

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  Ahn Young-joon, AP
  Banners advertising Samsung Electronics' Galaxy S III and Apple's iPhone 4S are displayed at a mobilephone shop in Seoul, South Korea, Aug. 27, 2012.

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Ahn Young-joon, AP

Banners advertising Samsung Electronics' Galaxy S III and Apple's iPhone 4S are displayed at a mobilephone shop in Seoul, South Korea, Aug. 27, 2012.

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Apple shares rose on the news while Samsung's stock dropped 7%% in overseas trading. It trades over the counter in the U.S. Any further gains in Apple's stock boosts its market capitalization, which is already at an all-time high while Samsung's market cap plunged $12 billion Monday.

Investors are selling Samsung shares because the court loss could remove Samsung products from the market and saddle it with over $3 billion in damages. The jury, which found that some Samsung products illegally copied features and designs from Apple's iPhone and iPad, awarded Apple $1.05 billion in damages with a finding of willful infringement that gives the judge the option to triple damages.

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Investors appear to be betting that the verdict will make it harder for Apple rivals to ride on the iPhone's coat-tails. In particular, it's likely to slow the growth of Android, Google's operating system for smartphones. It's used by Samsung, HTC, LG and Motorola, now a division of Google. Shares of Google, maker of the Android operating system, were down 1.4% in trading. Shares of device maker HTC, whose devices run on Android, were also down in overseas trading. It, too, trades over the counter in the U.S.

Apple scored a jury victory on three key patents that cover software features in Android. Those patents cover functions that allow Apple device users to easily scroll pages, zoom out on images or tap to enlarge text, all with fingers. Apple won 6 out of 7 of the patents in dispute, including those that cover design. According to the verdict, Samsung violated the design patent for the front of the iPhone on all but one of its phones. On the home screen patent, Samsung was in violation with all of its phones, the jury found.

Samsung's Galaxy Tab 10.1 tablet faces market removal and Apple could move forward to request injunctions in efforts to bar infringing Samsung smartphones. Apple's software and design infringement claims extend to a wide range of Samsung smartphones, including its Nexus S 4G and S II. Apple could get a ruling banning their sale.

Samsung will have the chance to appeal to the federal court of appeals in Washington, D.C., which could take a year or more to play out.

Igor Eric Kuvykin Apple stock today

Apple stock, dollars per share, today.

The electronics giant faces increasing costs of its devices and the potential for licensing fees, say legal experts.

Contributing: USA TODAY's Scott Martin in San Francisco