Samsung V Apple: Samsung ordered to pay over $1BILLION after jury says they STOLE patented designs

| August 26, 2012 | 0 Comments

  • Californian jury ordered Samsung to pay Apple $1.05 billion
  • Apple plan to formally demand Samsung pull its most popular
    cellphones and computer tablets from the U.S. market
  • They can also ask
    the judge to triple the damages to $3 billion
  • Samsung has emerged as one of Apple’s biggest rivals and has overtaken them as the leading smartphone maker
  • Samsung sold 22.7 million smartphones and tablets that Apple claimed
    uses its technology
  • After seeing Samsung’s legal defeat, other device makers relying on
    Android may become more reluctant to use the software and risk getting
    dragged into court
  • Apple could also call for import ban on rival’s products in other territories
  • Samsung plan to appeal

By
Daily Mail Reporter

17:52 EST, 24 August 2012


|

00:06 EST, 26 August 2012

Apple has been awarded more than $1 billion in damages as it prevailed in its patent-infringement case against Samsung.

The jury decided that the majority of Samsung smartphones and tablets violate patents held by Apple including features such as the zoom in and out innovation achieved by tapping the screen.

The jury also decided that Samsung’s infringement was intentional and said the firm’s counter-suit for $399 million against Apple was without merit.

Kevin Johnson, (right), and Victoria Maroulis, (left), attorneys for Samsung, leave the US Courthouse and Federal building after a jury reached a decision in the Apple Samsung trial on Friday, Aug 24, 2012 in San Jose, California

Kevin Johnson, (right), and Victoria Maroulis, (left), attorneys for Samsung, leave the US Courthouse and Federal building after a jury reached a decision in the Apple Samsung trial on Friday, Aug 24, 2012 in San Jose, California

The white iPhone 4S

The iPhone 4S and the Samsung Galaxy S II: Apple claims Samsung ripped off their phone with the Galaxy range

The iPhone 4S and the Samsung Galaxy S II: Apple claims Samsung ripped off their phone with the Galaxy

Outside counsel Jason Bartlett for Apple Inc. is surrounded by reporters after jurors found Samsung Electronics infringed on all but one of seven patents at issue in the patent case with Apple Inc.

Outside counsel Jason Bartlett for Apple Inc. is surrounded by reporters after jurors found Samsung Electronics infringed on all but one of seven patents at issue in the patent case with Apple Inc.

Samsung has said it will appeal against the ruling.

‘We will move immediately to file post-verdict motions to
overturn this decision in this court and if we are not successful, we
will appeal this decision to the Court of Appeals,’ a statement from
Samsung said.

The verdict in the complex case came after the nine-member jury began deliberations on Wednesday.

The software giant are set to call for a sales injunction at a hearing next month, demanding Samsung products are pulled from the U.S. market.

The landmark legal case could also affect other territories such as the UK, as Apple could call for import bans on its rivals products.

Apple
Corp. filed its lawsuit in April 2011 and engaged legions of the
country’s highest-paid patent lawyers to demand $2.5 billion from its
top smartphone competitor. Samsung Electronics Co. fired back with its
own lawsuit seeking $399 million.

But the day belonged to Apple as the jury rejected all Samsung’s claim
against Apple. The jury did reject some of Apple’s claims against the
two dozen Samsung devices at issue, declining to award the $2.5 billion
Apple demanded.

During closing arguments, Apple attorney Harold McElhinny claimed Samsung was having a ‘crisis of design’ after the 2007 launch of the iPhone, and executives with the South Korean company were determined to illegally cash in on the success of the revolutionary device.

Samsung’s lawyers countered that it was simply and legally giving consumers what they want: Smart phones with big screens. They said Samsung didn’t violate any of Apple’s patents and further alleged innovations claimed by Apple were actually created by other companies.

Reporters wait outside the United States Courthouse and Federal building after a jury reached a decision in the Apple Samsung trial on Friday

Reporters wait outside the United States Courthouse and Federal building after a jury reached a decision in the Apple Samsung trial on Friday

A Californian court has decided that Apple's iPad was copied by Samsung Electronics' Galaxy tablet 10.1 (right) and that the South Korean firm must pay over $1 billion in damages

A Californian court has decided that Apple’s iPad was copied by Samsung Electronics’ Galaxy tablet 10.1 (right) and that the South Korean firm must pay over $1 billion in damages

Apple’s legal team plans to formally demand Samsung pull its most popular
cellphones and computer tablets from the U.S. market. They also can ask
the judge to triple the damages to $3 billion. U.S. District Judge Lucy
Koh will decide those issues along with Samsung’s demand she overturn
the jury’s verdict in several weeks.

The outcome of the case is
likely to have ripple effects in the smartphone market. After seeing
Samsung’s legal defeat, other device makers relying on Android may
become more reluctant to use the software and risk getting dragged into
court.

‘Some of these device makers might end up saying, ‘We love
Android, but we really don’t want to fight with Apple anymore,’ said
Christopher Marlett, CEO of MDB Capital Group, an investment bank
specializing in intellectual property.

‘I don’t know if $1 billion is hugely significant to Apple or Samsung,’ Marlett said. ‘But there is a social cost here. As a company, you don’t want to be known as someone who steals from someone else. I am sure Samsung wants to be known as an innovator, especially since a lot of Asian companies have become known for copying the designs of innovators.’

Samsung conceded that Apple makes great products but said it doesn’t have a monopoly on the design of rectangle phones with rounded corners that it claimed it created.

The trial came after each side filed a blizzard of legal motions and refused advisories by U.S. District Judge Lucy Koh to settle the dispute out of court.

Samsung has sold 22.7 million smartphones and tablets that Apple claimed uses its technology. McElhinny said those devices accounted for $8.16 billion in sales since June 2010.

Apple and Samsung combined account for more than half of global smartphone sales.

As part of its lawsuit, Apple also demanded that Samsung pull its most popular cellphones and computer tablets from the U.S. market.

From the beginning, legal experts and Wall Street analysts viewed Samsung as the underdog in the case.

Apple’s headquarters is a mere 10 miles from the courthouse, and jurors were picked from the heart of Silicon Valley where Apple’s late founder Steve Jobs is a revered technological pioneer.

While the legal and technological issues were complex, patent expert Alexander I.

Poltorak previously said the case would likely boil down to whether jurors believe Samsung’s products look and feel almost identical to Apple’s iPhone and iPad.

Vengeance: Late Apple CEO Steve Jobs holds up an Apple iPhone he vowed to fight to the bitter end against those who stole its design

Vengeance: Late Apple CEO Steve Jobs holds up an
Apple iPhone: He vowed to fight to the bitter end against those who
stole its design

Tim Cook, left, seen with Steve Jobs in 2010, took over after Mr Jobs' death in October of last year

Apple CEO Tim Cook, (left) seen with Steve Jobs in 2010, took over Apple after Mr Jobs’ death in October of 2011

To overcome that challenge at trial, Samsung’s lawyers argued that many of Apple’s claims of innovation were either obvious concepts or ideas stolen from Sony Corp. and others. Experts called that line of argument a high-risk strategy because of Apple’s reputation as an innovator.

Apple’s lawyers argued there is almost no difference between Samsung products and those of Apple, and presented internal Samsung documents they said showed it copied Apple designs.

Samsung lawyers insisted that several other companies and inventors had previously developed much of the Apple technology at issue.

Samsung has emerged as one of Apple’s biggest rivals and has
overtaken as the leading smartphone maker. Samsung’s Galaxy line of
phones run on Android, a mobile operating system that Google Inc. has
given out for free to Samsung and other phone makers.

Google
entered the smartphone market while its then-CEO Eric Schmidt was on
Apple’s board, infuriating Apple co-founder Steve Jobs, who considered
Android to be a blatant rip off of the iPhone’s innovations.

After
shoving Schmidt off Apple’s board, Jobs vowed that Apple would resort
to ‘thermonuclear war’ to destroy Android and its allies.

If
Android lose any ground in the mobile computing market, that would hurt
Google, too. That’s because Google relies on Android to drive mobile
traffic to its search engine and services to sell more advertising.

The
Apple-Samsung trial came after each side filed a blizzard of legal
motions and refused advisories by the judge to settle the dispute out of
court. Deliberations by the jury of seven men and two women began
Wednesday.

Jurors left the courthouse without addressing the scrum
of international media who camped out at the San Jose courthouse for a
month.

They notified the judge at about 2:30 p.m. that they had
arrived at a verdict after deliberating two-and-a-half days. Many
expected deliberations to last longer because of the complexity of the
case.

Jurors filed into the courtroom silently Friday, the
youngest juror who favored flip flops, shorts and playing videogames was
wearing a Beatles sweatshirt and handed over the 20-page verdict form
with little fanfare.

Jason Bartlett, outside counsel attorney for Apple, center, leaves the United States Courthouse and Federal building after a jury reached a decision in the Apple Samsung trial on Friday

Jason Bartlett, outside counsel attorney for Apple, center, leaves the United States Courthouse and Federal building after a jury reached a decision in the Apple Samsung trial on Friday

Samsung mobile phone

An iphone 3gs

Head-to-head: Samsung and Apple have closed
their battle on patent infringement with Apple claiming Samsung copied
their iPhone’s design (right) for theirs (left)

The U.S. trial is just the latest skirmish between the two tech giants over product designs. Previous legal battles were fought in Australia, the United Kingdom and Germany.

The U.S. case is one of some 50 lawsuits among myriad telecommunications companies jockeying for position in the burgeoning $219 billion market for smartphones and computer tablets.

And in what could be a foreshadowing of the U.S. verdict a court in South Korea ruled Apple and Samsung have both infringed each other’s patents on mobile devices

The Seoul Central District Court
decided Samsung did not copy the look and feel of the iPhone, and that
Apple infringed on Samsung’s wireless technology.

Legal battle: In this drawing from inside the San Jose court room earlier this month, Apple marketing chief Phil Schiller addresses a judge during the California trial

Legal battle: In this drawing from inside the San Jose court room earlier this month, Apple marketing chief Phil Schiller addresses a judge during the California trial

Comparisons between the Samsung Tablet and Apple's iPad are seen in this image presented at the patents trial in San Jose, California

Comparisons between the Samsung Tablet and Apple’s iPad are seen in this image presented at the patents trial in San Jose, California

In
a split decision on the case, however, the panel of judges also said
Samsung violated Apple’s rights to the bounce-back feature when
scrolling on touch screens.

The
ruling affects only the South Korean market, and is part of a larger,
epic struggle over patents and innovation unfolding in nine countries.
The biggest stakes are in the U.S., where Apple is suing Samsung for
$2.5billion (£1.6billion) over allegations it has created illegal
knockoffs of iPhones and iPads.

The Seoul ruling was a rare victory
for Samsung in its arguments that Apple has infringed on its wireless
technology patents, which previously have been shot down by courts in
Europe.

‘This is basically Samsung’s victory on its home territory,’ patent attorney Jeong Woo-sung told The Associated Press.

‘Out of nine countries, Samsung got the ruling that it wanted for the first time in South Korea.’

Here’s what other readers have said. Why not add your thoughts,
or debate this issue live on our message boards.

The comments below have not been moderated.

Any company that restricts choice in order to increase it’s own proftability is no good in my opinion.
– Stoned, East Mids., 26/8/2012 00:50
———————————— Well, you certainly are stoned. ———————– Try naming me a company that does NOT restrict choice in order to increase it’s own profits. Name me just one company that offers to sell it’s competitors products as well as it’s own. Name me one company that does not protect it’s own investments and designs, and instead gives them freely to their competitors to copy. —————————–EVERY COMPANY RESTRICTS CHOICE. If they didn’t then they would fail, because why would you buy a product from company A if company B offered the exact same thing, and offered something exclusive to their products as well?

Why buy Apple with its quirky operating system and having to pay for apps!!!

This whole case amazes me. I will never buy another Apple product again, I have only ever bought one. Why would I want an iphone when my S3 has a slot for a memory card and I can change the battery? I get great battery power and don’t have to constantly have my phone on the charger. It is funny that Apple makes their little phone with Samsung parts yet does not want any competition. As others have written, before Samsung, Palm had a rectangular device with icons and rounded corners, as did other makers, why didn’t Apple go after them? Because Samsung put out the Galaxy S3 that blew away their iphone 5 just a few months before it was coming out and they wouldn’t have the time to make any changes to try to make it better than the S3, that is why. Apple is so greedy that they want a monopoly on phones and pads. Remember when pocket pc’s came out, they all looked the same and had similar OS and icons. Android is here and Apple can’t handle it.

Rotten shi++y Apple.

No sweat. Samsung China will send as many as you like to the US without breaking any Uor Chinese laws.

I first started using Apple 20 years ago, back then Apple was cool and the underdog … now they have turned into the world biggest cooperate monster … They behave like the US government and think they have the right to rule the world. I for one will need buy another Apple product again.

The internal documents sunk Samsung They show willful intent. Summary judgement. Case closed.

Jason Bartlett looks smug in the pictures. That isn’t a good idea.
Apple I suggest you get someone who is less self-congratulatory. This doesn’t do your cause – however valid – any favours at all.
He looks like a smug git.

What is all this garbage people say about Apple? Any company that restricts choice in order to increase it’s own proftability is no good in my opinion. Got to give credit to Apple though, they certainly have their customers exactly where they want them, eating out of their hand. You want choice? Go to Android.

Why do I get the idea that america is morally and financially bankrupt thanks to the behaviour of their rich ‘masters’ and are trying to blame the rest of the planet? Samsung, standard Chartered, RBS, what next, the monarchy for not handing over canada all those years ago? Pathetic. Listen up samsung, america has about 250million people, not all of them buy your product anyway. Europe has 35omillion people, China has over a billion, India has over a billion, then there is Russia, South America and the rest of the world. In other words you can get business elswhere so if you dont want to pay its no big deal is it?

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