Friday, March 1, 2013

Judge Slashes Jury Award in Apple-Samsung Case -2013


A federal judge on Friday weakened the blow from Apple’s legal victory in a patent case against Samsung, lopping more than 40 percent off the damages a jury awarded last year.
It was a mostly symbolic setback for Apple, one that did not shift the case — one of the most closely watched in the technology industry — in Samsung’s favor. While Apple has lost other skirmishes against Samsung in courts around the world, the jury award in the United States case has been the biggest victory for either side so far. Even at a reduced level, it would be among the highest damage awards in a patent dispute.
The judge ordered a new trial to recalculate a portion of those damages, leaving open the possibility that some of them could be restored. She also indicated that Apple is entitled to additional damages for sales of Samsung products that have occurred since the jury’s decision last summer, which could further swell the amount Apple is owed by Samsung.
In her review of the jury’s decisions, which originally awarded Apple more than $1 billion for patent violations by Samsung in its mobile products, Judge Lucy Koh of the United States District Court in San Jose, Calif., knocked those damages down by $450 million, to $599 million. The new trial will determine how much of the $450 million, if any, should be restored.
“It will be years before the parties exhaust all of their litigation avenues and options,” said Alan Fisch, an intellectual property lawyer with Fisch Hoffman Sigler in Washington, DC. “Still, some form of patent cross-license between the two would not be an unsurprising final result.”
None of Judge Koh’s opinion changed the jury’s finding that Samsung violated a series of Apple patents in its smartphone and tablet products. But the judge took issue with the way the jury calculated the damages from the Samsung devices named in the case, more than two dozen in all. In her 27-page opinion, Judge Koh said the jury failed to follow her instructions in calculating damages for a certain class of patents, known as utility patents.
She also decided in Samsung’s favor in a dispute between the two parties over when Apple notified Samsung that it was infringing Apple’s intellectual property. Evidence of such notice dates are important because they help determine how hefty the damages are in a court case, once the party being notified is found guilty of infringement. Judge Koh chided Apple for using an expert in the case who used an “aggressive notice date” — meaning, an early one — to calculate damages.
“The need for a new trial could have been avoided had Apple chosen a more circumspect strategy or provided more evidence to allow the jury or the court to determine the appropriate award for a shorter notice period,” she said in her ruling.
Steve Dowling, a spokesman for Apple, declined to comment. Representatives of Samsung didn’t respond to requests for comment.
Apple and Samsung, meanwhile, continue to fight ferociously in the smartphone market, where Samsung has steadily worked its way to the No. 1 position over the last few years. In the fourth quarter, Samsung accounted for 29 percent of global smartphone shipments, while Apple accounted for 21.8 percent, according to IDC.
Mark A. Lemley, a professor at Stanford Law School, called the judge’s decision “an extremely careful and thorough opinion on a very difficult and interrelated set of issues.” (Mr. Lemley has done past legal work for Google, which makes the Android operating system used by Samsung in most of its mobile products.)
Mr. Lemley predicted that Samsung would wind up with some reduction in the original $1 billion award, but “almost certainly” less than the $450 million that Judge Koh reduced it by on Friday.
“We’ll need a new trial to figure that out,” he said. “Judge Koh has encouraged both sides to appeal first. That may clarify some questions, but it is unlikely to prevent a new trial, just delay it some.”

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