Op-Ed

Beyond the Rhetoric: War Between Apple v. Samsung

Published

10 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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Activism

Juneteenth: Celebrating Our History, Honoring Our Shared Spaces

It’s been empowering to watch Juneteenth blossom into a widely celebrated holiday, filled with vibrant outdoor events like cookouts, festivals, parades, and more. It’s inspiring to see the community embrace our history—showing up in droves to celebrate freedom, a freedom delayed for some enslaved Americans more than two years after the Emancipation Proclamation was signed.

Published

2 days ago

June 18, 2025

Oakland Post

Wayne Wilson, Public Affairs Campaign Manager, Caltrans

By Wayne Wilson, Public Affairs Campaign Manager, Caltrans

Juneteenth marks an important moment in our shared history—a time to reflect on the legacy of our ancestors who, even in the face of injustice, chose freedom, unity, and community over fear, anger, and hopelessness. We honor their resilience and the paths they paved so future generations can continue to walk with pride.

As we head into the weekend full of festivities and summer celebrations, I want to offer a friendly reminder about who is not invited to the cookout: litter.

At Clean California, we believe the places where we gather—parks, parade routes, street corners, and church lots—should reflect the pride and beauty of the people who fill them. Our mission is to restore and beautify public spaces, transforming areas impacted by trash and neglect into spaces that reflect the strength and spirit of the communities who use them.

Too often, after the music fades and the grills cool, our public spaces are left littered with trash. Just as our ancestors took pride in their communities, we honor their legacy when we clean up after ourselves, teach our children to do the same, and care for our shared spaces.

Small acts can inspire big change. Since 2021, Clean California and its partners have collected and removed over 2.9 million cubic yards of litter. We did this by partnering with local nonprofits and community organizations to organize grassroots cleanup events and beautification projects across California.

Now, we invite all California communities to continue the incredible momentum and take the pledge toward building a cleaner community through our Clean California Community Designation Program. This recognizes cities and neighborhoods committed to long-term cleanliness and civic pride.

This Juneteenth, let’s not only celebrate our history—but also contribute to its legacy. By picking up after ourselves and by leaving no litter behind after celebrations, we have an opportunity to honor our past and shape a cleaner, safer, more vibrant future.

Visit CleanCA.com to learn more about Clean California.

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Activism

OPINION: California’s Legislature Has the Wrong Prescription for the Affordability Crisis — Gov. Newsom’s Plan Hits the Mark

Last month, Gov. Newsom included measures in his budget that would encourage greater transparency, accountability, and affordability across the prescription drug supply chain. His plan would deliver real relief to struggling Californians. It would also help expose the hidden markups and practices by big drug companies that push the prices of prescription drugs higher and higher. The legislature should follow the Governor’s lead and embrace sensible, fair regulations that will not raise the cost of medications.

Published

2 days ago

June 18, 2025

Oakland Post

Rev. Dr. Lawrence E. VanHook. Courtesy of Rev. Dr. Lawrence E. VanHook.

By Rev. Dr. Lawrence E. VanHook

As a pastor and East Bay resident, I see firsthand how my community struggles with the rising cost of everyday living. A fellow pastor in Oakland recently told me he cuts his pills in half to make them last longer because of the crushing costs of drugs.

Meanwhile, community members are contending with skyrocketing grocery prices and a lack of affordable healthcare options, while businesses are being forced to close their doors.

Our community is hurting. Things have to change.

The most pressing issue that demands our leaders’ attention is rising healthcare costs, and particularly the rising cost of medications. Annual prescription drug costs in California have spiked by nearly 50% since 2018, from $9.1 billion to $13.6 billion.

Some lawmakers, however, have advanced legislation that would drive up healthcare costs and set communities like mine back further.

I’m particularly concerned with Senate Bill (SB) 41, sponsored by Sen. Scott Wiener (D-San Francisco), a carbon copy of a 2024 bill that I strongly opposed and Gov. Newsom rightly vetoed. This bill would impose significant healthcare costs on patients, small businesses, and working families, while allowing big drug companies to increase their profits.

SB 41 would impose a new $10.05 pharmacy fee for every prescription filled in California. This new fee, which would apply to millions of Californians, is roughly five times higher than the current average of $2.

For example, a Bay Area family with five monthly prescriptions would be forced to shoulder about $500 more in annual health costs. If a small business covers 25 employees, each with four prescription fills per month (the national average), that would add nearly $10,000 per year in health care costs.

This bill would also restrict how health plan sponsors — like employers, unions, state plans, Medicare, and Medicaid — partner with pharmacy benefit managers (PBMs) to negotiate against big drug companies and deliver the lowest possible costs for employees and members. By mandating a flat fee for pharmacy benefit services, this misguided legislation would undercut your health plan’s ability to drive down costs while handing more profits to pharmaceutical manufacturers.

This bill would also endanger patients by eliminating safety requirements for pharmacies that dispense complex and costly specialty medications. Additionally, it would restrict home delivery for prescriptions, a convenient and affordable service that many families rely on.

Instead of repeating the same tired plan laid out in the big pharma-backed playbook, lawmakers should embrace Newsom’s transparency-first approach and prioritize our communities.

Let’s urge our state legislators to reject policies like SB 41 that would make a difficult situation even worse for communities like ours.

About the Author

Rev. Dr. VanHook is the founder and pastor of The Community Church in Oakland and the founder of The Charis House, a re-entry facility for men recovering from alcohol and drug abuse.

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Alameda County

Council Approves Budget to Invest in Core City Services, Save Fire Stations, Invest in Economic Development

I am most proud of our ability to fund these critical city services without the use of one-time fixes. We are still suffering the consequences of last year’s budget, where a majority of the Council, myself not included, chose to incorporate anticipated proceeds from the sale of the Coliseum to fund essential services. Since the sale has still not yet been completed, the lack of funds led to drastic cuts in city services, including the temporary closure of fire stations, staff layoffs, and the cancellations of many service contracts.

Published

6 days ago

June 14, 2025

Oakland Post

District 4 Oakland City Councilmember Janani Ramachandran. Photo courtesy City of Oakland.

By Janani Ramachandran, District 4 Oakland City Councilmember

On Wednesday, June 11, City Council took a bold step to prioritize investing in essential city services to get our beautiful Town back on track. As Chair of the Finance Committee, I am proud to have led a collaborative process, alongside Councilmembers Rowena Brown, Zac Unger, and Charlene Wang, to develop a set of amendments to the proposed FY 2025-2027 budget which passed successfully with a vote of 6 – 1. Despite facing a $265 million structural budget deficit, we were able to restore funding to ensure that all 25 fire stations remain open, fund 5 police academies, invest millions of dollars to combat illegal dumping and sideshow prevention, improve our permitting processes, fund a “business incentives” program to revitalize our commercial corridors, improve upon our homelessness prevention work, amplify the city’s anti-trafficking programs, re-instate our tree services division, staff up our Auditor’s office – all while preventing any layoffs of city staff, keeping our senior centers and after-school programs open, and crisis services like MACRO funded.

Our budget comes in response to the widespread and consistent calls from across Oakland’s diverse communities asking us to prioritize funding solutions to the issues that have most directly impacted our residents’ safety and quality of life. Our priorities are also inspired by our belief that Oakland is on the way not only to financial recovery, but also to global recognition. Oakland can attract and preserve businesses of all sizes with safer, cleaner streets. We can and will have more large-scale festivals that celebrate our culture, concerts that uplift our incredible local musicians, conferences that attract patrons from across the world, and award-winning restaurants that top national charts. We are on our way to rebuilding a thriving economy and having a cultural renaissance will create more jobs for Oaklanders while also generating more revenue for the City through sales and business taxes.

I am grateful for the close partnership with our new Mayor Barbara Lee, and know that she shares our values of ensuring we are prioritizing keeping Oakland’s residents safe, our streets clean, and our businesses prosperous in an open and fiscally responsible manner. I am also thankful to our City Administrator, Jestin Johnson, and former Interim Mayor Kevin Jenkins’ efforts to produce the initial proposal that our Council budget team used as a starting point for our amendments, and for their shared commitment to transparency and ethical government. I am especially grateful for every resident that took the time to make their voice heard throughout this rigorous budget process. I have no doubt that we are on the verge of true change, and that together we will bring Oakland back to being the world-class city I know it can be.