Samsung Electronics Co., Ltd. (005930) Battles Apple In Court Again

Posted Nov 14, 2013

Samsung Electronics Co., Ltd. (KRX:005930) and Apple are entering court against each other once again after a hiatus for several months.  This new trial is not about whether Samsung is infringing on Apple’s patents.  Instead, it is going to focus on how much Samsung has to pay in damages.


Apple’s lawyer Harold McElhinny argues that the amount is $379.8 million based on five patents.  One of the patents covers the pinch-to-zoom feature.  Samsung Electronics Co., Ltd. (KRX:005930)  originally was ordered to pay $1 billion last year.

U.S. District Judge Lucy Koh said that the jury made an error calculating the part of the damages.  Judge Koh ordered Samsung and Apple to go back to trial to argue the actual amount, which impacted about $400 million in the verdict.

On Wednesday, McElhinny said that Samsung sold around 10.7 million phones that infringes on Apple’s patents, generating $3.5 billion in revenues.  McElhinny believes that Apple was entitled to be made “whole.”  Samsung’s lawyer William Price said that this was a heavy price to pay and suggested that Samsung only owes $52.7 million.

Price said that the large amount that Apple is demanding should cover all 13 of Samsung’s products found to have violated Apple’s patents.  Price pointed out that the $52 million is already a heavy amount even for Samsung.

McElhinny opened his arguments by showing a video from 2007 of Apple founder Steve Jobs introducing the iPhone.  McElhinny asked the six-woman and two-man jury to remember when the iPhone’s signature features were new and brought up the business risk that Apple had taken to develop the product.

“If Apple had invested all that time and money and product had not worked, it would have been a major blow,” stated McElhinny.

The case was filed in the U.S. District Court, Northern District of California as Apple Inc vs. Samsung Electronics Co Ltd, 11-1846.

[Source: Reuters]