Op-Ed

Beyond the Rhetoric: War Between Apple v. Samsung

Published

11 years ago

June 1, 2015

By Harry C. Alford
NNPA Columnist

On the surface, the Apple/Samsung trial that recently concluded appears to be a minor win for Samsung in a long-running patent war. The U.S. Court of Appeals for the Federal Circuit cut Samsung’s damages payment from $930 million to $548 million, a substantial reduction in penalty.

The legal reasoning behind the court’s decision has, however, validated some of Apple’s most corrosive arguments for the future of design patent litigation. Worst of all, these consequences won’t just be limited to technology conglomerates like Apple and Samsung; they will percolate throughout the economy and affect businesses everywhere, particularly in our society’s most vulnerable and underprivileged communities.

For consumers, particularly minorities, the court’s ruling raises questions about innovation and competition. Patents are meant to protect companies that innovate and create. But the court’s ruling places less certainty on design patent interpretation, and opens the floodgates for increased litigation on design patents.

In short, the court ruled that Apple’s complaint over Samsung’s infringement of certain design features (such as the “rounded rectangle” shape of smartphones) was valid, and that this infringement entitled Apple to damages despite the fact that these patents are irrelevant to customers’ purchasing decisions. This is an extremely troubling precedent to set, as it means that basic elements of design, such as shapes, can be patented and used as the basis for extremely costly lawsuits.

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. The ramifications will not just be limited to the so-called “smartphone wars” either, but will spread throughout the economy as a new breed of patent trolls race to find businesses to sue on the pretext of design patent infringement.

Today, African Americans own only 5.5 percent of U.S. businesses 4 percent of high-tech enterprises. Many of the National Black Chamber of Commerce’s 10,000 members own patents to compete against other firms that also hold patents. Becoming involved in a design patent war could shutter many minority-owned businesses.

Even worse, the law now holds that business owners found responsible for selling a product that infringes on a design patent are also liable for profits from its sale. This extreme extension of liability could cripple a small business. If a convenience store owner in an underprivileged neighborhood is found to have sold a potato chip brand whose bag violates a design patent, the resulting penalties could easily put him or her out of business. This is totally counterproductive to the pressing priority of using business and economic growth to help uplift underprivileged communities.

This extension of legal culpability also makes no practical sense. Is a small business owner supposed to validate that each and every product he or she sells does not violate design patents? The answer is obviously no.

Because of the court’s unfortunate ruling, we can only hope that Congress will override this damaging interpretation of the law through a legislative fix. Without this step, there is a substantial chance that the very patent trolls that both the House and Senate are currently working so hard to cripple will simply shift from their current tactics to design patent litigation. In fact, if the court’s reasoning stands, design patent litigation will likely be even more financially rewarding for unscrupulous patent trolls than their current practices, making our problem even worse.

As the NBCC previously wrote, litigation costs for companies sued by trolls can range from $2 million to $8 million. Minority-owned companies struggling to make ends meet cannot afford hefty litigation costs, let alone the threat of more trolls knocking on their doors and the potential of owing total profits on a product they sell. The court’s unwillingness to define design patent law interpretation is damaging to African-American companies, the consumers they serve, and the communities they support.

There is so much more on the line in this case than the $548 million that Samsung owes Apple. The consequences of the Court’s ruling have the potential to permeate every part of the economy as design patents become the default crutch for people and companies willing to twist the law to make a quick buck.

Samsung and Apple are both multi-billion dollar conglomerates that can afford hefty legal fees as well as suffer the occasional setback in court. The Black small business owners who work seven days a week to barely make ends meet, however, are the last people prepared to deal with a flood of unwarranted litigation. They will truly feel the brunt of the mistake that the U.S. Court of Appeals for the Federal Circuit has made, not the world’s biggest electronics firms.

Harry C. Alford is the co-founder, President/CEO of the National Black Chamber of Commerce®. Website:www.nationalbcc.org Email: halford@nationalbcc.org.

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Advice

Financial Wellness and Mental Health: Managing Money Stress in College 

While everyone’s financial situation is unique, several common sources of stress have the potential to strain your financial health. These include financial and economic uncertainty, existing debts, unexpected expenses, and mental or physical health changes. Financial stress may differ from situation to situation, but understanding the factors contributing to yours may help you begin to craft a plan for your unique circumstances.

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2 weeks ago

March 17, 2026

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Women & Wealth: Tips for Navigating Your Lifelong Financial Journey

Published

2 weeks ago

March 15, 2026

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Sponsored by J.P. Morgan Wealth Management

We are in the midst of a seismic shift in wealth. This phenomenon, often referred to as the “Great Wealth Transfer,” describes the unprecedented movement of assets from the Baby Boomer generation to their heirs – an estimated $105 trillion by 2048. And women are poised to inherit most of this.

J.P. Morgan Wealth Management’s 2025 Investor Study found that women are not only set to receive significant wealth – they’re actively working to build it on their own. Ninety-three percent of women surveyed who are expecting an inheritance aren’t relying on it to reach their goals.

Here are a few tips for women to consider in their wealth-building journey:

Create a financial roadmap

A detailed, well thought out plan is important. J.P. Morgan’s study found that 90% of those surveyed with a plan feel confident about reaching their financial goals, compared to 49% without one.

Your plan should reflect your unique goals, priorities and circumstances. Consider your investment horizon and risk tolerance, and remember to revisit your plan regularly as life evolves.

Are you saving up for goals like buying a house, sending your kids off to college or retiring early? Where do you want to be in the next five, ten or twenty years? Everyone’s financial situation is unique, so it’s important to think about these questions and build a plan that is unique to your life.

Women tend to live longer than men on average. Many take career breaks or care for family members, which can influence long-term planning. It’s important to adjust your strategy with these factors in mind.

Where to start with investing

Don’t let misconceptions hold you back. Starting to invest doesn’t require a large sum, and beginning early can be beneficial. The earlier you start, the more time your money has to potentially grow over the years. Understand your overall financial situation, set clear goals and develop a long-term plan.

It’s important to also make sure you’re covered for unexpected expenses that come up before you start to invest. Build up a cash emergency fund, typically enough to cover three to six months of expenses, and pay down any high-interest debt.

Taking charge of your finances

The good news is that women are taking charge of their finances. J.P. Morgan’s research found that 75% of women respondents make financial decisions with their partner or take the lead themselves. For those who have a spouse or partner, it’s important for each person in the relationship to play an active role in the process.

Building wealth can be empowering for many women. The same survey found that 73% of women respondents said money gives them “security,” while 64% of Gen Z and Millennial women associated it with “freedom.”

The power of having a team

Some people find it helpful to work with a financial advisor, so you don’t have to tackle things alone. An advisor can help you craft a plan tailored to your needs and keep you on track throughout your lifelong financial journey. If you expect to receive an inheritance, you should also consult with estate planning and tax professionals.

No matter where you are on your wealth-building path, education is key. It’s so important to be an informed investor, and there are plenty of resources out there to help. You can find a library of free educational resources at chase.com/theknow.

As the landscape of wealth continues to evolve, women have a unique opportunity to shape their financial futures and those of generations to come. By staying informed and planning ahead, women have the tools to help them confidently navigate the Great Wealth Transfer and set themselves up for financial freedom.

The views, opinions, estimates and strategies expressed herein constitutes the author’s judgment based on current market conditions and are subject to change without notice, and may differ from those expressed by other areas of J.P. Morgan. This information in no way constitutes J.P. Morgan Research and should not be treated as such. You should carefully consider your needs and objectives before making any decisions. For additional guidance on how this information should be applied to your situation, you should consult your advisor.  

JPMorgan Chase & Co., its affiliates, and employees do not provide tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any financial transaction.  

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Rising Optimism Among Small And Middle Market Business Leaders Suggests Growth for California

“Business leaders across the Pacific region continue to demonstrate a unique blend of resilience and forward-thinking, even in the face of ongoing economic uncertainty,” said Brennon Crist, Managing Director and Head of the Pacific Segment, Commercial Banking, J.P. Morgan. “Their commitment to innovation and growth is evident in the way they adapt to challenges and seize new opportunities. It’s this spirit that keeps our region at the forefront of business leadership and progress. We look forward to helping our clients navigate all that’s ahead in 2026.”

Published

1 month ago

February 14, 2026

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Sponsored by JPMorganChase

Business optimism is returning for small and midsize business leaders at the start of 2026, fueling confidence and growth plans.

The 2026 Business Leaders Outlook survey, released in January by JPMorganChase reveals a turnaround from last June, when economic headwinds and uncertainty about shifting policies and tariffs caused some leaders to put their business plans on hold.

Midsize companies, who often find themselves more exposed to geopolitical shifts and policy changes, experienced a significant dip in business and economic confidence in June of 2025. As they have become more comfortable with the complexities of today’s environment, we are seeing optimism rebounding in the middle market nationwide – an encouraging sign for growth, hiring, and innovation. Small businesses, meanwhile, maintained steady optimism throughout 2025, but they aren’t shielded from domestic concerns. Many cited inflation and wage pressures as the top challenges for 2026 and are taking steps to ensure their businesses are prepared for what’s ahead.

Overall, both small and midsize business leaders are feeling more confident to pursue growth opportunities, embrace emerging technologies and, in some cases, forge new strategic partnerships. That bodes well for entrepreneurs in California. Here are a few other key findings from the Business Leaders Outlook about trends expected to drive activity this year:

Inflation remains the top concern for small business owners. Following the 2024 U.S. presidential election, many anticipated a favorable business environment. By June 2025, however, that feeling shifted amid concerns about political dynamics, tariffs, evolving regulations and global economic headwinds.
Going into 2026, 37% of respondents cited inflation as their top concern. Rising taxes came in second at 27% and the impact of tariffs was third at 22%. Other concerns included managing cash flow, hiring and labor costs.

For middle market leaders, uncertainty remains an issue. Almost half (49%) of all midsize business leaders surveyed cited “economic uncertainty” as their top concern – even with an improved outlook from a few months ago. Revenue and sales growth was second at 33%, while tariffs and labor both were third at 31%.
And tariffs are impacting businesses costs. Sixty-one percent of midsize business leaders said tariffs have had a negative impact on the cost of doing business.
Despite challenges, leaders are bullish on their own enterprises. Though the overall outlook is mixed, 74% of small business owners and 71% of middle market companies are optimistic about their company’s prospects for 2026.
Adaption is the theme. For small business owners surveyed across the U.S., responding to continuing pressures is important in 2026. Building cash reserves (47%), renegotiating supplier terms (36%) and ramping up investments in marketing and technology are among the top priorities.
Big plans are on the horizon. A majority midsized company leaders expect revenue growth this year, and nearly three out of five of (58%) plan to introduce new products or services in the coming year, while 53% look to expand into new domestic and/or international markets. Forty-nine percentsay they’re pursuing strategic partnerships or investments.

The bottom line

Rebounding optimism among U.S. business leaders at the start of the year is setting the stage for an active 2026. With business leaders looking to implement ambitious growth plans that position themselves for the future, momentum in California could be beneficial for leaders looking to launch, grow or scale their business this year.