After seeking $2 billion, jury awards Apple just $120 million over Samsung’s infringement of two patents

“Apple Inc., after seeking $2 billion in damages, won only $120 million from Samsung Electronics Co. in a jury trial over smartphone technology,” Joel Rosenblatt reports for Bloomberg. “The verdict sets the stage for the iPhone maker to seek a judge’s order banning U.S. sales of its rival’s devices that infringed its patents. The jury also found that Apple infringed one Samsung patent, awarding it $158,000 in damages.”

“‘It is hard to view this outcome as much of a victory for Apple,’ Brian Love, an assistant professor at the Santa Clara University School of Law, said in an e-mail. ‘This amount is less than 10 percent of the amount Apple requested and probably doesn’t surpass by too much the amount Apple spent litigating this case,'” Rosenblatt reports. “Jurors found that Samsung infringed two of the four Apple patents it considered in a case, which revolved around whether the maker of Galaxy phones used features in Google Inc.’s Android operating system that copied the iPhone maker’s technology. A finding that Samsung infringed the auto-correction patent was issued by U.S. District Judge Lucy Koh before the trial.”

Read more in the full article here.

MacDailyNews Take: As we wrote earlier today:

An iPhone with a larger screen option will hurt Samsung immeasurably more than myriad, unending traipses through the legal morass.

Moral of the story: Crime pays. Very, very, very well. And patents are basically useless in protecting intellectual property when the advance made is too significant. As with the Mac, Apple could not, would not be allowed to totally dominate unit sales with their revolutionary iPhone. Period. (Even though Apple does dominate where it counts: Profit share.)

So, knock off at will, thieves. You’ll get away with it and make far, far more than you’ll ever lose (even though thinking people with consciences will look down upon your wares and never consider buying them).

And, Apple: Good luck finding the motivation to change the world yet again when you know, for a fact, that it will be knocked off by some scumbag company somewhere that knows even more clearly today that, in the end, it’ll get away with it pretty much scot-free. Luckily for the world (and the criminals like Microsoft and Samsung), Apple seems to be motivated to please themselves and their customers, even though they know in the hearts that what they are inventing, what is supposed to be their intellectual property, will begin to be pilfered by greedy thieves the moment it is released.

If any good comes out of this verdict, it’s that a precedent has been set. One thing Apple doesn’t need is money.

Apple’s products came first, then Samsung’s:

Samsung Galaxy and Galaxy Tab Trade Dress Infringement

Here’s what Google’s Android looked like before and after Apple’s iPhone:

Google Android before and after Apple iPhone

Hhere’s what cellphones looked like before and after Apple’s iPhone:
cellphones before and after Apple iPhone

71 Comments

    1. Anyway you look at it, samdung owes Apple nearly three-quarters of a billion dollars; that’s not chump change, change from a chump I guess is appropriate. The sooner Apple begins selling larger screen iPhones the better. Get rid of samdung parts, that’s 4 billion a year.

    1. The way I look at it what Samsung will lose after losing Apple completely as a parts & supply customer is essentially billions of dollars worth of lost money aka “fines.” And there aren’t many other customers out there the size of Apple to replace them.

      Ahh the Fandroid will feel boldly vindicated today completely lost on the evil that copiers do. I never understood why the dark geeks want to embarrass themselves and follow so badly the likes of the dishonest people who run Samsung and the clueless Steve Ballmers of the world. Steve Jobs was indisputably way cooler and an iVisionary by a country light year.

  1. People incorrectly criticize Tim Cook for a lot of things, but the one thing that gets me is that he keeps using Samsung for components even in 2014. He could have built his own display factory and chip fab and hired every fab expert worth anything years ago.

    WE WANT YOU TO CRUSH SAMSUNG INTO PASTE, TIM, NOT CONTINUE SENDING THEM BILLION-DOLLAR PRODUCTION ORDERS.

    BE A MAN! A HEALTHY, LIVING STEVE WOULD HAVE NIXED SAMSUNG OUT OF THE SUPPLY CHAIN COMPLETELY YEARS AGO.

    (Brought to you by Carl’s Jr.)

    1. You’re not looking at the big picture. Your view is simplistic. Apple and Samsung affect the worldwide availability of components. Apple cannot stop buying components from Samsung (as a way to hurt Samsung) any more than Samsung can stop selling components to Apple (as a way to hurt Apple).

      If Samsung offers the best price, volume, and quality, Apple MUST buy from Samsung. If Apple does not buy from Samsung to take Samsung’s huge production capacity “off the market” for at ultra-low volume purchase price, Samsung has excess capacity, and will sell to Apple’s competitors. Apple’s competitors are able to buy those components at a lower price, because Apple is intentionally avoiding Samsung as a supplier. Meanwhile, Apple is forced to buy those same components at a higher price, because Apple is making supply intentionally (and artificially) scarce, just for itself.

      Apple often pays in advance to tie up future production capacity, making components more scarce and more expensive for everyone else. This practice is one reason Apple can produce higher quality iPhones and iPads at a price that meets or beats the competitions’ equivalent products (except during a “fire sale”). That is an integral part of Apple’s strategy. Apple can certainly expands its list of suppliers, but intentionally avoiding Samsung as a supplier hurts Apple just as much as it hurts Samsung.

      1. Thank you Ken, for a remarkably cogent assessment of why Apple cannot dump Samsung as a supplier. I get very tired of MDN’s juvenile demands that Apple stop using Samsung’s parts without even the most basic understanding of how global supply chain management works.

      2. What prevents Apple from competing with and beating Samsung Electronics to a pulp? Apple has $160 billion dollars on hand. Apple already designs the best mobile processors on the planet. They could destroy Samsung Electronics if they had the will. Apple does NOT have to buy from Samsung. This is proven by the fact that Apple alreadys buys components that could be sourced from Samsung from TSMC, Japan Display, Sharp, LG Display, etc. instead.

        Apple could hurt Samsung by eliminating Samsung Electronics completely as iOS device component suppliers. That business cannot be replaced.

    2. “If we don’t beat our opponent in the first few moves, we’re doomed!”

      Seriously, this is a slow methodical win for Apple. They have the resources.

    3. Amen brother! Their short term gain, deserves them long term loss. As the Brits like to say: A penny wise, and a pound foolish. Samsung’s dishonesty will haunt them for years to come.

      I’m sure Tim Cook would pull out of Samsung if he could. Unfortunately, there aren’t a lot of suppliers that can deliver a lot of the things Apple needs from them.

      Even if Apple were to bring production in house, it’ll take years to get production installed. Expect Apple to quietly phase out Samsung in small phases. They’ll start out with the easier things and continue on to other facets of their components as time and technology allow. Cook won’t cut off his nose to spite his face.

      Unfortunately, for right now Apple still needs Samsung. I expect that to change over the next few years. I think everybody at Apple is mad enough to want to see them out of the picture.

    1. Yeah I had that foolish dream too… But then I woke up – to the real world where legal or ethical justice is a fantasy that owes everything to luck and nothing to innate fairness.
      It’s time for the brilliant, but slightly naive folk at Apple to face the facts that there will always be plenty of criminals and sociopaths like the ones running SlimeSung, and that they will never be able to rely on legal redress to make those criminals pay.
      Apple needs new strategies to protect their ideas and investments.

  2. Another travesty.

    As with the Mac, Apple could not, would not be allowed to totally dominate unit sales with their revolutionary iPhone. Period.

    So true, yet so sad.

  3. Google = Android.

    Android is a stolen product. Apple needs to nail the parent not the children.

    Apple needs real shark lawyers that don’t stop at nothing but victory and understand every little detail of this theft.

    1. Maybe I’m naive but surely if nothing else the decisions in this and the previous trial, assuming they are upheld will force any other android phone maker (beyond HTC) infringing these patents to pay up too.

  4. End business with Samsung TODAY! Make iron clad deal with another chip company with serious anti-copying of intellectual property language & very large billion dollar penalties for any copying or any leaking of IP to anybody…period.

    1. Well, not exactly. Android is in a terrible state as a public OS. Google directly lose money on Android by devoting coders to the project while giving it away. Google gathers cash by surveilling Internet victims and selling their behavior to advertisers. It’s not clear, to me at least, how Android contributes to Google’s bottom line any better than iOS does the same. Well, apart from the fact that Apple has been competing with Google for advertiser revenue.

    2. We shall go on to the end, we shall fight in court,
      we shall fight on the seas and oceans,
      we shall fight with growing confidence and growing strength in the airwaves, we shall defend our IP, whatever the cost may be,
      we shall fight on the beaches,
      we shall fight on the landing grounds,
      we shall fight in the fields and in the streets,
      we shall fight in the hills;
      we shall never surrender.

  5. Mac Users today unite with RAINBOW arm bands & swear to never EVER buy any Samsung OR Google products EVER in the future worldwide. No Phones, TVs, Refrigerators, Appliances, Radios, DVD Players, Monitors, Computers, Services, Internet Services, Music, NOTHING period worldwide from millions of Apple fans! Spread the word that these thieves will starve for lack of money & not buy any of their products & encourage all your friends & family to do likewise. FINISH THE THERMONUCLEAR WAR that Steve Jobs declared on Samsung & Google. RAINBOW JIHAD!

            1. Just because I don’t want to wear a rainbow and be misidentified immediately as a homosexual, doesn’t make me homophobic. Just like I wouldn’t wear a beret around. I’m not French, either. Not that there’s anything wrong with that. 😉

    1. It’s been a couple of years I bought anything from Samsung, except for their components in Apple devices. I’m not about to give up on purchasing Apple products because they carry Samsung parts in their machines.

      But I will boycott them on everything else. Spread the word ask colleagues, friends, and family, to do the same.

    2. While I like the idea of completely boycotting Samsung, I would like to suggest that there is an even better way to hurt their profits AND their image.
      I work in the AV industry and it is a well known fact that (as I’m sure most of you are aware) there is next-to-no money in displays 50″ or smaller. Sharp is cutting manufacturing of anything smaller than 60″. It might be worth considering buying displays smaller than 50″ from Samsung only, thereby not only limiting their profit but also labeling them the company that can’t sell anything other than cheap displays. Actions like this will do more to burn into the minds of consumers the fact that samsung is worthless and incapable of innovation because it will be realized at a subconscious level and not just at a cognitive level. That is where the real battle is and where Apple always wins. Why else do we buy Apple products?

Reader Feedback

This site uses Akismet to reduce spam. Learn how your comment data is processed.