Samsung Electronics Co. says Apple Inc.’s patent-infringement claims of $2.19 billion are 57 times higher than what the Galaxy maker should pay if a jury finds it infringed smartphone technology.
Samsung called on a Yale University business school professor yesterday to make its case to a federal jury in San Jose, California, that if it has to pay anything, the amount should be as little as 35 cents a phone -- a stark comparison to Apple’s demand for more than $40 a phone.
The Suwon, South Korea- based company also began its own court yesterday, accusing Cupertino, California-based Apple of infringing two of its patents.
Professor Judith Chevalier’s testimony built on a Samsung lawyer’s argument at the outset of the trial that Apple’s multibillion-dollar figure is a “gross exaggeration” and an “insult” to the intelligence of jurors. According to Samsung, Apple’s damages are inflated because the five patented smartphone features at issue are of marginal value.
The second U.S. trial between the world’s top two smartphone makers follows legal battles on four continents to dominate a market that was valued at $338.2 billion last year, according to data compiled by Bloomberg.
In patent law, to calculate damages, companies are asked to recreate a “hypothetical” license negotiation, according to Love. Vellturo’s damages estimates assume Samsung would “capitulate” and “roll over” to Apple’s royalty demands, Chevalier said. She argued that Apple’s patents at issue in the case are of such marginal value that the company hasn’t lost profits due to Samsung’s infringement.
“My analysis compensates Apple through a reasonable royalty and zero lost profits,” Chevalier told jurors. “When Samsung sells a phone, Apple may be losing out. But that is not the same as saying that Apple loses sales because Samsung infringes Apple’s patents.”
Apple claims that 10 Samsung products, including the Galaxy S3, infringe five patents covering a range of user-interface designs for the iOS software that powers iPhones and iPads, including features like the slide-to-unlock function, automatic spelling corrections, and the ability for a user to make a call by clicking on a phone number within a web page or e-mail instead of having to dial it separately. Apple Functions
Others functions Apple says are covered by its patents include searching for words in files stored in different applications and updating applications while using other features of the phone.
Samsung alleges that eight Apple products, including the iPhone 5 and versions of the iPad and iPod, infringe two of its patents.
One claim is that FaceTime, Apple’s video-chatting service, infringes a patent covering technology for compressing video data so it can be sent over a cellular network.
The other patent at issue in the case, acquired by Samsung in 2011 from Japan’s Hitachi Ltd., covers functions related to retrieving, classifying and organizing digital images.
Samsung lost 0.4 percent to close at 1,375,000 in Seoul. The benchmark Kospi index gained 0.3 percent.
The case is Apple Inc. v. Samsung Electronics Co., 12-cv-00630, U.S. District Court, Northern District of California (San Jose).