According to the decision by a London court, it ordered Apple Inc. to publicly correct any impression that Samsung Electronics ('A+'/Stable) was copying Apple's iPad stands in stark contrast to a ruling by a US court. The US court had upheld Apple's claims, and placed partial injunctions against the sale of Samsung's products in the US.
Fitch sees the legal battle continuing for at least the next 12 months, with over 40 different lawsuits pending across several countries; and the latest decision - by the London court - illustrates that a ruling in one country will not be followed automatically in another.
From a regulatory point of view, Samsung is often "holding the flag" for all the Android OS based smartphone makers. Fitch therefore believes it would be unlikely for the major courts around the world to rule in a manner which bans the Android operating system-based equipment from competing against Apple's devices.
On the other hand, if Apple manages to secure a one-sided victory, it would clearly weigh negatively on Samsung's credit profile. In Q112, Samsung's telecom division accounted for 51% of the conglomerate's revenue and 73% of its operating profit, with most of this coming from smartphone sales. However, if both companies are able to win patent infringement suits and ban each other's products in various countries, Fitch would expect Samsung and Apple to agree on a number of compromises over the medium term - where one side may gain a slight advantage, albeit not significantly.
