Samsung seeks further cut in patent damages to Apple

by Bloomberg News
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Samsung and Apple have each scored victories in patent disputes fought over four continents since the iPad maker accused Asia’s biggest electronics producer in April 2011 of ‘slavishly copying’ its devices. Photo – Bloomberg News

San Francisco: Samsung Electronics said it will seek a further review of patent damages awarded to Apple even after winning a reduction of about 45 per cent of the $1.05 billion amount.


US district judge Lucy Koh in San Jose, California, on March 1 cut the damages award after finding that the jury based its decision on an incorrect legal theory.

"We are pleased that the court decided to strike $450,514,650 from the jury's award," Nam Ki Yung, a spokesman at Suwon, South Korea-based Samsung, said in a statement yesterday.

"Samsung intends to seek further review as to the remaining award." Samsung and Apple have each scored victories in patent disputes fought over four continents since the iPad maker accused Asia's biggest electronics producer in April 2011 of 'slavishly copying' its devices.

The companies continue to battle over patents as they seek dominance of a mobile-device market estimated by researcher Yankee Group at $346 billion in 2012, even as Apple remains one of Samsung's biggest customers.

Koh, who previously rejected Cupertino, California-based Apple's bid to ban US sales of 26 Samsung devices, also denied the iPhone maker's request to increase the jury's award. The judge said the amount owed by the Galaxy maker was heavily disputed, and the jury wasn't bound to accept either side's damages estimate.

The jury's award for 14 other products stands at $598.9 million, she said. Steve Dowling, a spokesman for Apple, had said the company had no comment on the ruling.

New trial
Koh ordered a new trial on damages for some Samsung products. The companies should consider appealing her ruling before the trial begins, the judge said.

A witness for Apple whose testimony the jury relied on "presented a theory that the court had ruled legally impermissible," Koh said in her ruling.

The judge said despite her explicit instruction that the theory couldn't be used, "the amount of the award made plain that the jury had applied the impermissible theory anyway." A witness for Apple whose testimony the jury relied on "presented a theory that the court had ruled legally impermissible," Koh said in her ruling.

The judge said that despite her explicit instruction that the theory couldn't be used, "the amount of the award made plain that the jury had applied the impermissible theory anyway."

Koh, who had previously rejected Apple's bid to ban US sales on 26 of the Galaxy maker's devices, also denied the iPhone maker's request to increase the jury's award, saying the amount Samsung owed was heavily disputed and the jury wasn't bound to accept either side's damages estimate.

The jury's award for 14 other products stands at $598.9 million, she said. "This is an extremely careful and thorough opinion on a very difficult and interrelated set of issues," Stanford Law School professor Mark A. Lemley said.

"Samsung will get some reduction in the award, but almost certainly less than $450 million — we'll need a new trial to figure that out."

Delayed trial
The two companies have shown "no sign of giving an inch, and I'm not sure that will change now," Lemley added. "My guess is that you'll see appeals that will clarify some things, but that just means the trial will be delayed for a while."

Samsung and Apple, the world's two biggest smartphone makers, have each scored victories in patent disputes fought over four continents since Apple accused Asia's biggest electronics maker of 'slavishly copying' its devices.

The companies, competing for dominance of a global mobile-device market estimated by researcher Yankee at $346 billion in 2012, are fighting over patents even as Apple remains one of Samsung's biggest customers.

Apple, based in Cupertino, California, is entitled to additional damages for sales of infringing products that weren't considered by the jury, Koh ruled, saying she intends to calculate the amount beginning August 25.


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