Samsung lawsuit inches closer to a conclusion, jury revises total damages due Apple to $888 million (update) Latest in Apple Apple promises to fix ultrawide monitor support on M1 Macs Excerpted from Samsung Rising: The Inside Story of the South Korean Giant That Set Out to Beat Apple and Conquer Tech © 2020 by Geoffrey Cain. Bushel baskets were placed in the elevator banks and break rooms, so that wherever Samsung employees took a coffee break, they were reminded of their mission—to take a bite out of Apple. “There was this growing base of Android users who could become a tribe,” Brian Wallace said, crunching a new trend in the social-media chatter. He approached the whiteboard and wrote: “Samsung = ?”, “Who are we?” he asked. You've seen the headlines: Monday marked the beginning of the big, billions-at-stake legal showdown between Apple and Samsung. Apple and Samsung combined account for more than half of global smartphone sales. On October 2, 2012, Samsung appealed the decision to the United States Court of Appeals for the Federal Circuit, requesting that Apple's victory be thrown out, claiming that the foreman of the jury had not disclosed that he had been sued by Seagate Technology Inc., his former employer, and which has a strategic relationship with Samsung, despite having been asked during jury selection if he had been involved in lawsuits. It demanded $2.5 billion in damages. Pendleton showed his colleagues side-by-side hardware comparisons between the iPhone and the Galaxy phone in The Wall Street Journal, which showed Samsung leading in a number of areas. The jury's decision was described as being 'Apple-friendly' by Wired and a possible reason for the increased costs—because of licensing fees to Apple—that subsequently affected Android smartphone users. The Samsung paid Apple lawsuit in 30 truck loads of coins rumor got started last fall when a court first ruled in favor of the Cupertino smartphone maker, naming 1.05 billion as the amount Samsung owed Apple.That amount was diminished however by about $400,000 when Judge Koh decided that some of the patent infringements cited may have been calculated incorrectly. [53] A U.S. jury trial was scheduled for July 30, 2012[2] and calendared by the court through September 7, 2012. The research—the field testing—had been done for internal consumption only. [67] The preliminary injunction was granted in June 2012, preventing Samsung from making, using, offering to sell, selling, or importing into the U.S. the Galaxy Nexus and any other of its technology making use of the disputed patent. Since Apple was copying Samsung’s patents, they argued, Apple had to pay Samsung. Apple‘s lawsuit on Samsung, what happened?The Jury In the much-hyped Apple vs.. Samsung patent Infringement lawsuit recently handed down a verdict which basically gave Apple everything it wanted: A billion- dollar payment from Samsung, plus the possibility of an injunction against sales of infringing Samsung smart phones and tablets. Samsung stood to gain US$6 million if the jury rules in its favor, while Apple was seeking US$2 billion in damages and could proceed with similar lawsuits against other Android handset makers, as the relevant patent issues extend beyond Samsung's software technology. [63], The injunction Apple sought in the U.S. to block Samsung smartphones such as the Infuse 4G and the Droid Charge was denied. Samsung’s greatest strength was its ability to manufacture superior hardware, faster than any of its competitors, through its vast, strict, top-down management system and its superior supply chain. Because Apple was an important Samsung customer, the executives at headquarters were pushing for a cautious approach. [5] Ultimately, the injunction Apple sought to block the Tab 10.1 was denied by the High Court of Australia. “I got about 50 different answers,” he said. By attacking Apple head-on, Samsung’s marketers thought they could establish themselves as the challenger brand, turning the competition with Apple into a Coke-versus-Pepsi war for the smartphone world. “Less stylish, less innovative.” “More functional.” “Good quality and value.” With Apple and Sony commanding and fiercely protecting that stylish and innovative space, could Samsung find an opening? [9], On Sunday, October 22, 2017 district court judge Lucy Koh ordered a second retrial of damages based upon the limitations imposed by the above decision of the United States Supreme Court. More urgent was the big-picture narrative; that is what built emotional appeal for the customer. [32], Shortly after the release of the iPhone 4S, Samsung filed motions for injunctions in courts in Paris and Milan to block further Apple iPhone sales in France and Italy, claiming the iPhone infringed on two separate patents of the Wideband Code Division Multiple Access standard. On the 24th of October, 2011, a court in the Hague ruled only a photo gallery app in Android 2.3 was indeed infringing a patent (EP 2.059.868), resulting in an import ban of three Samsung telephones (the Galaxy S, Galaxy S II, and Ace) running the infringing software. In the original lawsuit filed by Apple against Samsung in April 2011, the former stated that the South-Korean firm had ripped off the design and technology of Apple products. [36], Apple initially sued Samsung on grounds of patent infringement, specifically European patents 2.059.868, 2.098.948, and 1.964.022. Apple Inc. v. Samsung Electronics Ltd. Inc. “We don’t have a campaign here, guys,” Pendleton said. Samsung - a key component supplier to Apple Talks to avoid lawsuit in 2010 by Steve Constant reminders by Apple to Samsung about infringement of Apple Patents Stop infringement of IP or pay loyalty, Samsung refused Failed negotiations Apple Sues Samsung April 15,2011: Lawsuit against Samsung Electronics 16 patent infringement claims by Apple: o System Icons o Graphical User … Everyone else had fallen by the wayside. Crump had an idea to get that across: He’d send camera crews around Times Square, each carrying two duffel bags. [64][65][66], Apple appealed Judge Koh's ruling, and on May 14, 2012, the appeals court reversed and ordered Judge Koh to issue the injunction. For 2010 that revenue would have come to $250 million. Some have claimed[who?] [10] “The Samsung [response] was just blistering,” Brian recalled. “I’ve got a Note Edge. “I met him with the solution to Apple’s life-or-death problem hidden deep in my pocket,” Hwang wrote. At the time, Samsung was putting about 70 percent of its U.S. smartphone budget in so-called marketing development funds (MDFs), which were cash piles allocated to the carriers for advertising and rebates. [4][5] By July 2012, the two companies were still embroiled in more than 50 lawsuits around the globe, with billions of dollars in damages claimed between them. [51] One 2005 design patent "at the heart of the dispute is Design Patent 504,889",[52] which consists of a one-sentence claim about the ornamental design of an electronic device, accompanied by nine figures depicting a thin rectangular cuboid with rounded corners. In the case of Apple v. Samsung , star players include Michael Jacobs at Morrison Foerster. Rather than pitch consumers on why Samsung was great, marketing stories were framed around the telecom carriers—“telling a story around their network and why their network is great.”, The South Korean headquarters, meanwhile, sent over goofy and culturally inappropriate commercials that incited rebellion among the Americans on staff. He told Bloomberg TV that his experience with patents had helped to guide the jurors' decisions in the trial. “It’s a Galaxy S II. After that it was easier. ", "Did Apple alter photos of the Samsung Galaxy Tab 10.1 in its injunction filing? On November 21, 2013 the jury awarded a new figure of US$290 million. [31] On September 21, Mannheim Regional Court ruled in favour of Samsung in that it did not violate Apple's patented features in regards to touch-screen technology. [84] Samsung argued for, at the very least, a recalculation of the damages they owe in the case. Step two was to ensure that the economics of the coming marketing war on Apple made sense. 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