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Apple Vs Samsung Patent Lawsuit 2011-2012: Analysis of the Effectiveness of Patent Protection Enforcement

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Apple Vs Samsung Patent Lawsuit 2011-2012: Analysis of the Effectiveness of Patent Protection Enforcement APPLE VS SAMSUNG PATENT LAWSUIT 2011-2012: ANALYSIS OF THE EFFECTIVENESS OF PATENT PROTECTION ENFORCEMENT By BAYU DHARMAWAN WICAKSONO 016200900005 A thesis presented to the Faculty of Business and International Relations President University In partial fulfillment of the requirements for Bachelor Degree in International Relations January 2013 PANEL OF EXAMINERS APPROVAL SHEETS The Panel of Examiners declares that the thesis entitled “Apple VS Samsung Patent Lawsuit 2011-2012: Analysis of the Effectiveness of Patent Protection Enforcement” that was submitted by Bayu Dharmawan Wicaksono majoring in International Relations from the Faculty of Business and International Relations was assessed and approved to have passed the Thesis Defense on January 22nd 2013. Prof. Anak Agung Banyu Perwita, Ph.D Chair of Panel of Examiner Teuku Rezasyah, Ph.D Examiner Bantarto Bandoro, MA. Adviser i THESIS ADVISER RECOMMENDATION LETTER This thesis entitled “Apple VS Samsung Patent Lawsuit 2011-2012: Analysis of the Effectiveness of Patent Protection Enforcement” prepared and submitted by Bayu Dharmawan Wicaksono in partial fulfillment of the requirements for the degree of Bachelor in the Faculty of Business and International Relations has been reviewed and found to have satisfied the requirements for a thesis fit to be examined. I therefore recommend this thesis for Oral Defense. Cikarang, Indonesia, 6 January 2013 Bantarto Bandoro, MA. ii DECLARATION OF ORIGINALITY I declare that this thesis, entitled “Apple VS Samsung Patent Lawsuit 2011-2012: Analysis of the Effectiveness of Patent Protection Enforcement” is, to the best of my knowledge and belief, an original piece of work that has not been submitted, either in whole or in part, to another university to obtain a degree. Cikarang, Indonesia, 6 January 2013 Bayu Dharmawan Wicaksono iii PREFACE The development of technology in smart phone industry grows so fast and rapid. It is coherent with people demand in order to accommodate their technology- related daily need. It motivates smart phone producers to compete tightly providing various sophisticated devices with different range of price. Among them, some well- known producers are listed, such as HTC, Nokia, Motorola, Apple, and Samsung. In order to guarantee their sacrifices, both effort and cash, to invent new technologies, they utilize patent to protect it. Unfortunately, patent enforcement in smart phone development has been colored with many patent dispute involving two or more smart phone producers. One of the famous patent disputes was between Apple and Samsung in 2011-2012. It took place in several countries around the world, but the enormous moment occurred in United States of America. The popularity of Apple and Samsung patent dispute has led the researcher to conduct comprehensive analysis to explore some points, which are most related to this case. Those points are patent monopoly, the future of innovation and US consumers, and comparison between invent-around activity and licensing agreement in respond to patent protection. It is aimed to figure whether patent protection had been effectively enforced. This research is expected to be worthwhile for the development of International Relations study, especially in trade and economy field, and encourage further research related to the topic discussed. Nevertheless, the researcher is open for any critics, suggestions, and advices. Bekasi, 4 January 2013 Bayu Dharmawan Wicaksono iv ACKNOWLEDGEMENT Assalamu’alaikum Wr. Wb, First of all, a great thank for Allah SWT and His bestowal for the researcher from the beginning, during, until the end of the thesis writing process. The author also recognize some close persons who have contributed to the thesis writing process, even though this research still needs improvement in the future. Hence, a wonderful gratitude is delivered to those people respectively, who are: 1. Bantarto Bandoro, MA. As a mentor/adviser/supervisor of thesis writing. Thank you for plenty of your advices, knowledge transfer, and patience guiding the researcher during the process. 2. Prof. Anak Agung Banyu Perwita, Ph.D as the Head of Study Program of International Relations. 3. Teuku Rezasyah, Ph.D as an examiner in my thesis defense and also lecturer. 4. IR lecturers, Mr. Sigit Andi Rahman for the advice and Mr. Alm. Sulaiman Abdulmanan for his kindness to lend me some books related to World Trade Organization, which is useful for the researcher’s understanding on Intellectual Property Rights in trade context. 5. The researcher’s parents and sister, Mr. Dwi Prasetyo Widhiatmoko and Mrs. Mulyani, Ms. Hayuning Widyandhani for endless and priceless support, care, and huge love that make the researcher to keep stand strong facing any problems and challenges. A great thank also delivered to the researcher’s grandfather, Mr. Alm. Anas Soebagyo, for his priceless support for my development. May you have a best place in His side. v 6. Yunita Panggabean, secretary of International Relations department, for her contribution bridging the communication between the faculty to the researcher. 7. Thank also be given to Almira Citra Amelia, the researcher best friend since Senior High School, for her infinite support, fun, and care for the last many years; someone that will never be expected to leave forever. 8. IR 2009 colleagues, especially Ervina Elya Vitriyana, Riady Ibnu Khaldun, Putri Dwinatalis Baeha, and Yashinta Mayestika, for sharing information and knowledge transfer during thesis writing. 9. The researcher’s close friends in campus, Aprilia Winda Kusuma, Dendia Nurfajri, and Fanny Trijayanti Dhaspito for sharing the laugh, sweat, pain, love, and fun during the last 3 years. vi ABSTRACT Name : Bayu Dharmawan Wicaksono Study Program : International Relations Title : “Apple VS Samsung Patent Lawsuit 2011-2012: Analysis of the Effectiveness of Patent Protection Enforcement” This research aims to explore the possibility of patent monopoly done by Apple against Samsung, the significance of Apple and Samsung patent dispute case towards innovation and US consumers’ choice, and preferred alternative between licensing agreement and invent-around activities in respond to patented technologies and designs. The scope of time limitation of this study case is between 2011 and 2012, capturing several major events, from the beginning of case in San Jose Federal Court, USA until Apple’s failure to propose US sales ban for Samsung in the late December 2012. This case has received international attention and had been captured by international media, such as Bloomberg, Reuters, and Forbes. This research was conducted through qualitative approach by raising a study case. The data sources came from reliable online articles, case-related official documents released in the internet, and books. The analysis concludes that liberalism theory has faced challenge to play its role effectively, while rivalrous invention/competition theory has succeeded to prove its thought related to preference that possibly taken by competitor in response to patented technology owned by another. Key Words: Patent, Patent infringement, Technical Patent, Design Patent, iPad, iPhone, Samsung Galaxy, Monopoly, invent around, innovation vii TABLE OF CONTENTS PANEL OF EXAMINERS APPROVAL SHEETS……………………………… i THESIS ADVISER RECOMMENDATION LETTER….……………………… ii DECLARATION OF ORIGINALITY…………………………………...……… iii PREFACE………………………………………….………………………………. iv ACKNOWLEDGEMENT……………………………………….………………... v ABSTRACT………………………………………………..…………………..…. vii TABLE OF CONTENTS…………………….……………………………….…. viii LIST OF TABLES…………………………………………………………….….. xi LIST OF FIGURES…………….………………………………………………… xii LIST OF ABBREVIATIONS……………………………………..…………...... xiii LIST OF APPENDIX……………………………………………………..…...… xiv CHAPTER I INTRODUCTION………………………………………………..….1 1.1 Background of the Study………………………………………………...…. 1 1.2 Problem Identification……………………………………………..……...... 4 1.3 Theoretical Framework………………………………………..…………..... 7 1.4 Literature Review………………………………………..……………….... 11 1.5 Research Method……………………………….……………………...…....14 1.6 Objectives and Significance of Study……………………………………... 15 viii 1.7 Thesis Structure…………………………………………….…………….... 16 CHAPTER II OVERVIEW OF PATENT DISPUTE BETWEEN APPLE AND SAMSUNG………………………………………………………………………… 18 2.1 A Reflection of Smart Phone Patent Dispute………………......…………... 18 2.1.1 Patent Dispute Historical Records Prior to Apple vs. Samsung Lawsuit ………………………………………..…………………………………….. 19 2.1.2 The Pattern of Patent Dispute ………….……………………...…….. 24 2.2 Reflection of Apple’s and Samsung’s Smart Phone Market Share ...……... 26 2.3 Apple and Samsung Company Profile ……………………...…………….. 30 2.3.1 Samsung Company Profile: The Rise of the Firm and Its Galaxy…... 30 2.3.2 Apple Company Profile: The Victory of iPad and iPhone………….. 32 CHAPTER III ANALYSIS OF APPLE AND SAMSUNG PATENT DISPUTE AND INVENT-AROUND ACTIVITIES………………...……..……………….. 36 3.1 Details Exposure on Apple VS Samsung Patent Lawsuit…….…..…………… 36 3.2 Patent Monopoly in Apple and Samsung Patent Wars ….…….……………… 40 3.3 Patent Wars Between Apple and Samsung: The Future of Innovation and Consumers Choice………………………………………………………………… 42 3.4 Preferred Alternative: Invent-Around or Licensing Agreement? ....................... 46 3.5 Evaluation on Validity of Liberalism Theory and Rivalrous Invention Theory.. 49 3.5.1 Liberalism Theory Challenge on Apple vs. Samsung Patent Dispute…... 49 3.5.2 Rivalrous Invention/Competition Theory………………………………. 56 ix CHAPTER IV CONCLUSION…………………………………….……………. 58 BIBLIOGRAPHY…………………………………………………..…….………
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