Jury orders Samsung to pay Apple $290 million

Nov 21, 2013 by Paul Elias
Samsung's new Galaxy S4 is seen during its unveiling in this March 14, 2013 file photo at Radio City Music Hall in New York

A jury has added $290 million more to the damages Samsung Electronics owes Apple for copying vital iPhone and iPad features, bringing the total amount the South Korean technology titan is on the hook for to $930 million.

The verdict Thursday covers 13 older Samsung devices that a previous jury found were among 26 Samsung products that infringed Apple patents.

The previous jury awarded Apple $1.05 billion. But U.S. District Judge Lucy Koh ordered the new trial and tossed out $450 million of the damages after concluding that jury miscalculated the amount Samsung owed.

Apple had asked for $380 million, arguing Samsung's copying cost it a significant amount of sales. Samsung countered that it owed only $52 million because the features at issue weren't the reasons most consumers chose to buy Samsung's devices instead of Apple's.

Samsung said it would appeal both verdicts.

"For Apple, this case has always been about more than patents and money," Apple spokeswoman Kristin Huguet said. "While it's impossible to put a price tag on those values, we are grateful to the jury for showing Samsung that copying has a cost."

A third trial is scheduled for March to consider Apple's claims that Samsung's newest devices such as the popular Galaxy S III on the market also copied Apple's technology.

Apple and Samsung are the world's two biggest smartphone makers. The bitter rivals have been waging a global battle for supremacy of the $300 billion worldwide market. The size of the award didn't faze Wall Street or harm or help either company's financial fortunes in any significant way.

Samsung reported it had $47 billion in cash at the end of September and racked up $247.5 billion in revenue last year. Apple has $147 billion of cash on hand and took in $170.9 billion in revenue last year.

"We understood that the money wasn't really an issue," said juror Barry Goldman-Hall. "This was about the integrity of the patent process."

Goldman-Hall, 60, of San Jose was one of two men and six women on the jury, which was tasked only with determining damages.

Apple has argued in courts, government tribunals and regulatory agencies around the world that Samsung's Android-based phones copy vital iPhone features. Samsung is fighting back with its own complaints that some key Apple patents are invalid and Apple has copied Samsung's technology.

Samsung lawyer William Price argued Apple is misconstruing the breadth of its patents to include such things as basic rectangle shape of most smartphones.

"Apple doesn't own beautiful and sexy," Price told the San Jose jury.

Apple attorney William Lee told the jury that Samsung used Apple's technology to lift it from an also-ran in the smartphone market three years ago to the world's biggest seller of them today.

"Apple can never get back to where it should have been in 2010," Lee told the jury Tuesday at the conclusion of the weeklong trial.

The fight in San Jose is particularly contentious. The courtroom is a 15-minute drive from Apple's headquarters, and several prospective jurors were dismissed because of their ties to the company.

The three jurors who discussed the verdict outside court said Apple's proximity made no difference in their deliberations.

"Although Apple is down the street, it's a global company just like Samsung," jury forewoman Colleen Allen said. "I have a Samsung television and refrigerator and an Apple computer. I like both companies."

Allen, 36, of Aromas, is an emergency room nurse who served nearly eight years in the Navy, including a posting in Afghanistan.

"If we didn't award Apple much, we're saying it's OK to infringe patents," Allen said.

The South Korea-based Samsung has twice sought to stop the trial, accusing Apple on Tuesday of unfairly trying to inflame patriotic passions by urging jurors to help protect American companies from overseas competitors. The judge denied Samsung's request for a mistrial, but did reread an instruction ordering jurors to put aside their dislikes and biases in deciding the case.

On Wednesday, Samsung again demanded a halt to the trial after the U.S. Patent and Trademark Office told Apple it was planning to invalidate a patent protecting the "pinch-to-zoom" feature at issue in the jury's deliberation. The judge ordered more briefing while declining to stop the trial.

Explore further: Jury set to decide how much Samsung owes Apple (Update)

2.3 /5 (6 votes)
add to favorites email to friend print save as pdf

Related Stories

Jury set to decide how much Samsung owes Apple

Nov 20, 2013

A Silicon Valley jury asked a judge for calculators Tuesday to help it determine how much Samsung Electronics owes Apple for copying key features of the iPhone and iPad.

Apple wants $380M in patent trial with Samsung (Update)

Nov 13, 2013

Apple demanded Wednesday that Samsung Electronics pay it $380 million for copying vital iPhone and iPad features, as a billion-dollar patent fight between the world's two biggest smartphone makers resumed in a Silicon Valley ...

Jury ends Day 2 of Samsung-Apple deliberations

Nov 21, 2013

Jurors failed to reach a decision Wednesday and will return for a third day of deliberations to determine how much Samsung Electronics owes Apple for copying key features of the iPhone and iPad.

2nd Apple-Samsung trial in US gets underway (Update)

Nov 12, 2013

A federal judge and lawyers for the world's two biggest smartphone makers began picking a jury Tuesday to determine how much Samsung Electronics owes Apple for copying vital iPhone and iPad features.

Recommended for you

Airbnb rental site raises $450 mn

9 hours ago

Online lodging listings website Airbnb inked a $450 million funding deal with investors led by TPG, a source close to the matter said Friday.

US venture investments highest since 2001 (Update)

Apr 18, 2014

Funding for U.S. startup companies soared 57 percent in the first quarter to a level not seen since 2001, as venture capitalists piled more money into a growing number of deals, according to a report due out Friday.

User comments : 7

Adjust slider to filter visible comments by rank

Display comments: newest first

24volts
1.5 / 5 (14) Nov 21, 2013
Apple is getting desperate. They have been relying on that phone for most of their sales for too long. They need to come out with some new wiz-bang gadget to catch peoples attention again.
la7dfa
2.5 / 5 (2) Nov 21, 2013
Its insane to have this trial in Apple land. We all know it will be completely biased.
These patent wars just stops innovation. Patents for smartphones should last maximum one year, not 10 or 20...

http://www.bloomb...ban.html
triplehelix
1.4 / 5 (11) Nov 22, 2013
Has anyone even decided to look at some of Apples patents?

I am surprised they were even allowed to be patented.

Rectangular shape, yes, has been patented by apple for smart phones, and because samsung followed that design, they "copied" them. Don't worry about the past 2 decades of mobile phones being rectangular and the rectangle fitting in pockets best. No, samsung clearly copied it.

And the "flick" feature of the touch screen. This was invented on other PDA touchscreens, and the Nintendo DS before the Iphone, but Apple managed to patent it, so that's also "copying".

I refuse to buy ANY apple product for the rest of my life because

1.They're crap anyway, used to buy them, never liked them
2.They want a monopoly and to rob people blind
3.They are arrogant pricks.
QuixoteJ
1 / 5 (10) Nov 22, 2013
What a bunch of utter crap. Stuff that never should have been awarded a patent and now Apple resorts to cowardice to try to succeed. I hope their flawed policy of function-following-form-to-the-point-of-non-functionality will soon reduce them to what they really are, and we get to watch them try to "innovate" their way out of bankruptcy.

Dear Samsung, continue to make superior products that people enoy using more than Apple's, and please try to figure out a way to sue them for "stealing" something from you to teach them a lesson.
Protoplasmix
1 / 5 (9) Nov 22, 2013
Let us all not forget what Apple has actually pioneered in the industry: the "Double Irish With a Dutch Sandwich" accounting technique that they used to sidestep paying taxes on billions of dollars in revenue. If there has been a more egregious abuse of capitalistic freedom, I'd like to know what it was.
Lurker2358
1 / 5 (10) Nov 22, 2013
If there's going to be a smart phone monopoly, it may as well be an American company.

We certainly don't want the Japanese or Chinese having the Smartphone Monopoly.
Protoplasmix
1 / 5 (9) Nov 22, 2013
If there's going to be a smart phone monopoly, it may as well be an American company.

We certainly don't want the Japanese or Chinese having the Smartphone Monopoly.

Please do a search on "Apple Foxconn China Factories" and then elaborate on what you mean by 'monopoly'. Thx :)

More news stories

Airbnb rental site raises $450 mn

Online lodging listings website Airbnb inked a $450 million funding deal with investors led by TPG, a source close to the matter said Friday.

Health care site flagged in Heartbleed review

People with accounts on the enrollment website for President Barack Obama's signature health care law are being told to change their passwords following an administration-wide review of the government's vulnerability to the ...