Samsung to Supreme Court: Apple got too Much Money for its Design Patents

Grossly Over-Rewarding Design Patents – Hurt Competition/Innovation

When it comes to legal damages, it is said that design patents are given considerably value and Samsung has argued to the U.S. Supreme Court in its patent dispute with Apple. In a brief opening which had been filed recently with the nation’s highest court, Samsung had presented its cause on why an earlier ruling in favour of Apple should be discarded. It is said in the filing that `at a minimum, a new trial is essential’.

Samsung opposes that Apple should get the profits only from the parts of a smartphone which encroach on the patents of Apple, the front face and a grid of icons on the interface of a user and not the profits from the complete phone. It is mentioned that `grossly over-rewarding design patents’ would hurt competition and innovation and would lead to `absurd’ results in the other lawsuits.

Samsung had made a comment in a statement that `if the current ruling is left to stand, it would value a single design patent over the hundreds of thousands of ground-breaking technology patents, leading to vastly overvalued design patents’.

Damages Collected for Complete Value of Device

Apple had not responded to a request for comment. In March, the Supreme Court had decided to evaluate the long-running dispute between Apple and Samsung and for the first time had looked at a design patent since the 1800s. A pronouncement by the court may have a ripple effect over the technology industry and eventually affect the gadget one tends to buy since it could ultimately define the value of the design work.

Samsung desires that the Supreme Court should provide guidance on what is covered by design patents that tend to protect the way an item is utilised and how it works as well as on what damages it could be collected. Presently damages can be collected by the companies for the complete value of the device and not just the trespassing design features.

In the case of Apple versus Samsung, it had led to an initial damage award amounting to over $1 billion. The original trail of Apple against Samsung in 2012 had mesmerized Silicon Valley as well as the tech industry since it had exposed the inner workings of two extremely secretive companies. It had been just of one the several trials across the world since the rivals fought both in the marketplace as well as in the courtroom.

Samsung to Pay Apple in Damages

Last year, Apple and Samsung had agreed to bury the hatchet in their overseas cases though their US court conflicts seems to continue. Samsung had filed a motion with the Supreme Court requesting it to re-examine the patent breach case after it lost its case in court to Apple.

 As a consequence of the trial, Samsung had to pay off to Apple the $548 million in damages that had been ordered by court. That motion had been granted by the Supreme Court and for the first time it had considered a design patent and is likely to consider the case later in the year.

Samsung had requested that the next weeks’ damages retrial should be kept on hold in order to evade a probable fourth trial and `avoid probably duplicative and wasteful proceedings’.

Apple Erasing Samsung’s mobile Profitability

After its years long legal battles over patent infringement, Apple has rapidly erased Samsung’s mobile division profitability, making it very much unprofitable since every other Android or Windows licensee has reduced its margins in the phone, tablet and PC market.

According to MacDailyNews, an iPhone having a larger screen option could hurt Samsung immeasurably more than myriad, unending traipses through the legal morass. According to Daniel Eran Dilger, he reports that while Apple’s critics have been giving the credits to Xiaomi for Samsung’s unprofitability, the South Korean giant’s plummeting profitability is not due to the drop in its low priced, high volume tablets and phones but an implosion of Samsung’s profitable, high end Galaxy S and Note models which directly have been competing with iPhones’.

Samsung had made an announcement of its 73.9% drop in its mobile division profits for the Q3 and analysts have been keeping tab through 2013 on the company’s increasing competitive pressure from Apple on the high end as well as from high volume sales of lower end models being increasingly produced by Chinese companies especially Xiaomi.

Tough Battle for Samsung

Samsung is going through a tough battle on both fronts though based on the numbers which the company has reported, the drop in profits that Samsung has suffered in the Q3 has been the outcome of the thermonuclear assault by Apple focusing on its core revenue and profit generators.

Moreover Apple’s damage to Samsung will tend to get worse for the company as it remains are ravaged by the other Android licensees. Though Samsung’s profit has collapsed, IDC has reported in its smartphone market estimates that Samsung continues to lead the world in shipments as well as market share by a huge margin by shipping 78.1 million units, a YoY decline of around 8.2 percent.

Samsung had also reported that there was a slight growth in shipment in its earnings release though the earnings declined QoQ since ASP decreased due to weak smartphones product mix with the sales decrease adding pressure on the cost structure.

Samsung Yet to Pay Apple for Patent Infringement

The profits reduced due to average selling prices going down since it was selling less profitable phones and it was getting expensive to build its most expensive phones due to reduction in economies of scales.

Samsung stated that in the quarter, its phone shipments were driven by mid to low end products. As a result Samsung missed out on high end sales and while it was estimated that its total sales went down by 8.2 percent, analyst Ben Benjarin reported that its premium phones went down by almost fifty percent in the third quarter.

It is said that Samsung has still not paid Apple the almost $1 billion judgement which they were ordered to pay back in the year 2012 for patent infringement though it was reported of a much larger $4.7 billion YoY drop in quarterly profits within its IT & Mobile Communication group which is a rough comparison to Apple’s operation and the outcome of this decline in profits is not a mystery.

US Patent Office Rejects Apple Auto Complete Patent Used Against Samsung

Over the years, the market for mobile devices has experienced several ups and downs. Different mobile Companies has faced legal and monetary crisis. In recent times, another legal complication has hit the world of smart phones. The war has ended overseas but it is still raging in the US. This new chapter has begun with the Apple Vs Samsung patent-infringement trials.

BACKGROUND:

Although settled elsewhere, the battle over the patent is still raging in the US. The US Patent and Trademark Office have most recently rejected all the claims Apple made about a patent against Samsung. This was done on the grounds that certain portions of the claim were not valid. The patent is about ‘autocomplete’ feature that help the user generate word suggestions based on what the user been typing.

THE VERDICT:

The final stand on this particular case is not yet out. The word on the street is that Apple will be able to present their case all over again with more and relevant information. The preliminary ruling will in no way have an effect on the judgement passed by the district court about infringement. The whole process to settle down completely might take a very long time. It could be days, months or even a few years.

On the other hand, Samsung last Thursday have presented their case and the decision of the US Patent and Trademark Office to the court on the grounds that it is by far relevant to Samsung’s claim over invalidity defences for the 172 patent.

Neither Apple nor Samsung are willing to comment on this issue. The legal fight that is currently going on is getting complicated over time and is no more about the money involved. Although, damages have affected both the parties involved. The real battle is over the market. Who get the rule the mobile market is something to look forward to. Either it could go to the South Korean Company – Samsung, who are the leading producer of smart phones or it could go to number two. For now, both continue dominating the smart phone and tablet market.

HISTORY:

All of it started in the year 2011, in the month of April with Apple filling a suit against Samsung. The initial trial was in the month of August 2012. Apple won the first round with nine-person jury supporting Apple’s claim and Apple was awarded compensation for all the damages caused. Samsung asked for counter suit but unfortunately, for them they did not receive anything.

A new trial is under process to recalculate the damages involved in the month of March, 2013. Again, in the month of November, Apple was awarded additional compensation for the damages caused. The last trial took place in the month of May, this increased complications further for both sides asked for compensation.

No decisions are taken as of now. The silence prevails for now. No matter what the decision is, it will change the market forever.

Tim Cook was against the idea of attacking Samsung

Tim Cook was not a big fan of the idea of attacking Samsung in court, tells Reuters in an article that discusses the relationship of brother enemies. Steve Jobs already lead war and perhaps thinking at the time that it would be shorter but Tim Cook was against the idea of attacking Samsung. Tim Cook was opposed to this strategy which materialized in April 2011 by an initial complaint in California.  Cook's main concern was the importance occupied by Samsung among Apple's suppliers.

 According to a study, Apple had bought last year for $ 8 billion of Samsung components (6 billion). We know what happened and this war continues in court still, almost two years after Apple launched the offensive in response to the output of the first Galaxy S. The two companies still work together even though there are signs that Apple is seeking to diversify its sources of supply. The first complaint was a warning shot in a relationship began in 2005 when Apple was looking for a strong supplier in flash memory. Samsung held 50% of the market then became a partner "Whoever controls the flash will control the market of consumer electronics" Jobs reportedly said at the time, adds Reuters.

Samsung, for its part, as the main supplier of Apple could watch from the front row of the importance taken by the iPhone and iPad as well as projected sales of Apple. More details are available when you hear yourself play a leading role in these markets. Tim Cook has never publicly stated that he was opposed to the decision of Jobs. Over the episodes of these trials, he had few occasions to hammer Apple will defend its intellectual property and claim that its competitors may invent their own solutions. But last year, the conference D10, he also clearly marked his little appetite for these repeated conflicts around patents, describing real factors distractions screws other business activity which he would willingly happen.

Apple Verses Samsung on 3G

Apple and Samsung met all day yesterday in a court of the Netherlands. The Korean group called for the country is prohibited in the import and sale of the iPhone and iPad 3G version, Involved, the use by Apple 3G transceivers without payment of royalties. These components include technology from Samsung. A similar procedure is under way in France since July 8, on patents related to 3G as well as