The Korea Herald

지나쌤

Protectionism defines battle between Samsung, Apple

By Korea Herald

Published : Nov. 13, 2012 - 20:13

    • Link copied

“Designed for humans.” That’s Samsung tagline for the Galaxy S3, and it’s sure to include all humans, even the Americans, despite Samsung being at legal loggerheads with Apple Inc., one of the most quintessentially American companies around.

As Koreans, it’s hard not to be conscious of the nationality of the two companies, and the finale ― particularly how the appeal in the U.S. turns out ― will prove just how significant a part nationality played in this cross-border legal drama that’s just taken a “dirty” turn with Apple’s move to exclude Samsung from its supplier line and, in retaliation, the Korean firm’s reported decision to hike the prices of its mobile chips fitted in iPhones and iPads.

“It’s protectionism, clear and simple,” says Jung Sun-sup, head of Chaebul.com, a website trafficking critical information on Korean conglomerates.

For Apple and the U.S., Apple’s technology is more than just that: the operation system and design patents inarguably form the core of its technological edge.

This explains why U.S. courts initially chose to take sides with Apple, while other judges around the world ― namely in Europe ― have not. Koreans also vaguely believe Apple is not releasing the iPhone 5 in Korea out of spite.

“Again, it’s protectionism. In the U.K., for example, the court sided with Samsung because it wanted to protect its own consumers who wanted to continue using Samsung products,” Jung said.

His point is precisely why the final verdict is so very important.

It’s not about one mega-company winning over another, nor is it even about money, although it would hurt to lose more than $1 billion. Rather, the verdict will be a reminder of just how far nations will stretch themselves to protect powerful technology.

Officially, the Korean government appears indifferent to the Samsung case, but deep inside, it’s clear they’re rooting for Samsung, hoping it can add more technologies to the national portfolio and give Korean firms a leg-up.

The second part of the legal saga will be even more interesting to watch, as Samsung is winding up for a bigger fight by hiking the prices of the mobile processors it supplies to Apple, by 20 percent. Unable to find replacements, Apple was forced to swallow the price hike for its chips.

There also are reports that Samsung has removed an executive who had been handling Apple affairs for five years now, a move that reflects just how serious the Korean company is about its battle with Apple.

By Kim Ji-hyun (jemmie@heraldcorp.com)