See Micro Chem., 318 F.3d at 1122. Id. . First, there is no indication that Congress intended the defendant to bear the burden of persuasion on identifying the relevant article of manufacture or proving the amount of total profit, see Burstein, supra n.4, at 59-61, and so the default rule is presumed to apply, Schaffer, 546 U.S. at 56. See ECF No. As the smartphone market and the hype around this continues to grow, smartphone leaders fight for greater dominance in this segment of the product. The Court does not read the U.S. Supreme Court's decision as narrowly as Samsung suggests. ECF No. A smartphone is a portable computer device that combines mobile telephone functions and computing functions into one unit. As what Samsung did, they intend to charge Apple 2.4 percent of its chip for every patent. Apple vs Samsung Presentation - Free download as Powerpoint Presentation (.ppt / .pptx), PDF File (.pdf), Text File (.txt) or view presentation slides online. Copyright 2023 Negotiation Daily. Conclusion - Apple vs. Samsung Portal Conclusion In closing, our team has presented our findings relating to the Apple vs. Samsung case and how it evidences the flaws within the current U.S. patent system. The Negotiation Journal Wants to Hear From You! Id. Oct. 22, 2017). In 2016, the Supreme Court reviewed this case and held that the net profit damages for infringing design patents need not be calculated based on the product sold to the consumer. While Samsung could argue on the physical appearance being similar with iPhone but another thing the lawsuit included was trademark infringement. Consider a design patent for the decorative rim of a dinner plate. 1116, 11120 (S.D.N.Y. In the original 2012 case, Apple sued Samsung saying it copied various design patents of the iPhone. Id. 2009) ("Challenges to jury instructions are reviewed under the law of the regional circuit where the district court sits." Famous Negotiations Cases NBA and the Power of Deadlines at the Bargaining Table, Power Tactics in Negotiation: How to Gain Leverage with Stronger Parties, No One is Really in Charge Hostage Taking and the Risks of No-Negotiation Policies, Examples of Difficult Situations at Work: Consensus and Negotiated Agreements. ECF No. Because Apple had not presented sufficient evidence to recalculate the appropriate damages award for some of the infringing sales at issue in light of the proper notice dates, the Court struck approximately $410 million from the 2012 jury award and ordered a limited new trial on utility and design patent damages relating only to the sales of those products (the "2013 trial"). The Federal Circuit affirmed the damages award, rejecting Samsung's argument that damages should be limited because the relevant articles of manufacture were the front face or screen rather than the entire smartphone. The Court excluded Michael Wagner's expert report as to those damages because 289 and Federal Circuit case law clearly exclude an apportionment theory of design patent damages. Id. In that motion, Samsung mixed the apportionment and article of manufacture theories. On March 21, 2016, the U.S. Supreme Court granted certiorari in this case. This explains why the jurys award based on infringement of a design patent was 100X the award based on infringement of a utility patent. Your account is fully activated, you now have access to all content. To come out of this deep pit, Something that will hopefully revolutionize personal computing. This result is, first of all, the law of the case, and Samsung did not appeal it. Id. See Supreme Court Decision, 137 S. Ct. at 434 n.2; Tr. Apple also contends that legal errors in the proposed instruction mean that it was not error for the Court to have excluded it. 2017) (unpublished) ("Federal Circuit Remand Decision"). 206, 49th Cong., 1st Sess., 1-2 (1886)). They have not factored out, for example, the technology and what drives those profits." In that trial brief, Samsung argued in its trial brief that 289 "require[s] that profits disgorgement be limited to the 'article of manufacture' to which a patented design is applied" and that, as a result, Apple's attempt to seek "all of Samsung's profits from sales of the accused phones and tablets" would result in a windfall. ECF No. It instills confusion in consumers. After the success, they faced good losses in the fall of Apple 3. at 9, Samsung Elecs. Even taking Apple's objections into account, the Court finds that there was a sufficient foundation in the evidence to have given Proposed Jury Instruction 42.1. Apple was awarded $399 million in damagesSamsung's entire profit from the sale of its infringing smartphones. Second, calculate the infringer's total profit made on that article of manufacture." Back in April 2011, Apple had filed a lawsuit accusing Samsung of copying the look and feel of the iPhone when the Korean company created its Galaxy line of phones. Samsung Opening Br. Samsung Opening Br. 3509 at 32-33. 2840 at 704-08 (testimony of Apple's damages expert at 2013 trial); PX25A1.16 (Apple's 2012 trial exhibit summarizing its damages contentions); PX25F.16 (same for 2013 trial)). The Samsung that we know today, wasnt this when it started. at 434. Finally, Apple argues that the Court did not err by declining to give Proposed Jury Instruction 42.1 because that proposed instruction "contained multiple misstatements of law." 1611 at 1014-15 (Apple's expert Peter Bressler stating that "all [the D'677 patent is] claiming is that front face"). Its CEO at that time did meet several times with Steve jobs for advice or negotiations. at 7-9; Samsung Opening Br. In sum, the Court finds that the jury instructions given at trial did not accurately reflect the law and that the instructions prejudiced Samsung by precluding the jury from considering whether the relevant article of manufacture for the purpose of 289 was something other than the entire phone. Hearing Tr. . Merrick v. Paul Revere Life Ins. Apple Inc. is one of the most significant and notable American enterprise settled in Cupertino, California. Br., 2016 WL 3194218 at *26. See, e.g., U.S. Patent No. First, it argued that Samsung's sales eroded Apple's design and brand distinctiveness, resulting in a loss of goodwill. However, the court case wasnt the first guard of Apple against Samsung. How Sagacious IPs Patent Opposition Strategy Helped A Client to Challenge their Competitors Patent, IP Trends in the Automotive Industry Report, Timeline of the Apple vs. Samsung Legal Battle, Solar Water Splitting to Fuels Conversion Patent Landscape Study, Knock-Out Patentability Searches: Flag IP Conflicts Quickly and Expedite Patent Filing. The case began in 2011 and went on to go worldwide. In response, Samsung sued Apple over 3G patents and stated that iPhone such as iPhone 4, iPhone 4S, and iPad 2 infringed its patents. For every iPhone, Apple relies on Samsung for approximately 26% of the components (P.K., 2011). This is in part because "historically, the concept encompassed two distinct burdens: the 'burden of persuasion,' i.e., which party loses if the evidence is closely balanced, and the 'burden of production,' i.e., which party bears the obligation to come forward with the evidence at different points in the proceeding." Decision Leadership: Empowering Others to Make Better Choices, 2022 PON Great Negotiator Award Honoring Christiana Figueres, Managing the Negotiation Within: The Internal Family Systems Model, Mediation: Negotiation by Other Moves with Alain Lempereur. Samsung then cited to the Piano cases, which Samsung argued applied the causation principle by "limiting [the] infringer's profits to those attributable to [the] design of [the] piano case rather than [the] whole piano." It was Samsungs heavy advertising together with the distinct Android features that enabled Galaxy to overtake iPhone to become the most popular smartphone brand globally. The jury awarded approximately $1.049 billion to Apple on its infringement and trade dress claims. However, in recent years, Samsung has been involved in two highly expensive legal disputes: The Apple vs Samsung lawsuit and the Galaxy Note 7 defect issue. . 1916) ("Piano II") (opinion after appeal following remand) (collectively, "the Piano cases"), in which the Second Circuit held that the patentee had been overcompensated for being awarded the profits from an entire piano when the design patent at issue only applied to the piano case, not the internal components of the piano itself. Join a Coalition. This discussion was held at the 3 day executive education workshop for senior executives at the Program on Negotiation at Harvard Law School. REPORT NO. Chen, C & Ann, B 2016, 'Efficiencies vs. importance-performance analysis for the leading Smartphone brands of Apple, Samsung and HTC', Total Quality Management & Business Excellence, vol. L. J. 2014) ("Where the smallest salable unit is, in fact, a multi-component product containing several non-infringing features with no relation to the patented feature . According to Walter Issacson, Steves biographer, He wanted to start a thermonuclear war against Android in this case of plagiarism and copying apples authenticity. Writing as amicus curiae in support of neither party before the U.S. Supreme Court, the United States described the article of manufacture inquiry as "a case-specific analysis of the relationship among the design, the product, and any components." Apple's proposed factors are: Samsung contends that the relevant article of manufacture is "the specific part, portion, or component of a product to which the patented design is applied. Although a design patent owner may recuperate the infringers total profits, the utility patent owner may recuperate his/her lost profits or a fair royalty. Read on to discover stories and not many known facts about the tech hulks. Supreme Court Decision, 137 S. Ct. at 433 (quoting 24 Stat. In 2011, when Apple was already embroiled with Motorola, it went after Samsung for tablet and smartphone designs. Samsung cites three categories of evidence to show that the jury could have found an article of manufacture that was less than the entirety of each infringing Samsung phone. See DX2519 at 5-11. See PX6.1 (commentary about Samsung's Galaxy S phone and its "all black, shiny plastic body" and the "minimal buttons on the phone's face"). 1966, 49th Cong. The first lawsuit demanded 2.5 billion dollars in damages from Samsung. You've successfully signed in. Meanwhile, both companies decided to drop all the patent cases outside the US. Nokia and Motorola dominated the mobile phone market before Apple and Samsung became the worlds largest smartphone manufacturers. . at 132. . of Oral Arg. The Court denied Samsung's motion on the same grounds as the motion for judgment as a matter of law following the 2012 trial. Samsung wrote in its trial brief: "Apple, which sold its first iPhone nearly 20 years after Samsung started developing mobile phone technology, could not have sold a single iPhone without the benefit of Samsung's patented technology." (Guglielmo, 2012). Samsung raised this issue again in a Rule 50(a) motion for judgment as a matter of law following the close of Apple's case-in-chief. Apple argued that Samsung had waived its right to seek a new trial on the article of manufacture issue, that the jury instructions given were not legally erroneous, and that no evidence in the record supported Samsung's proposed jury instruction. This statement definitely rings true. Hearing Tr. After releasing the iPhone in 2007, Apple obtained design patents on a number of phone design features. Based on the evidence discussed in the foundation-in-the-evidence section above, the Court finds that a properly instructed jury may have found that the relevant article of manufacture for each of the design patents was something less than the entire phone. "Section 289 of the Patent Act provides a damages remedy specific to design patent infringement." 'those instructions were legally erroneous,' and that 'the errors had prejudicial effect.'" Id. at 57-58. Teach Your Students to Negotiate the Technology Industry, Planning for Cyber Defense of Critical Urban Infrastructure, Teaching Mediation: Exercises to Help Students Acquire Mediation Skills, Win Win Negotiation: Managing Your Counterparts Satisfaction, Win-Win Negotiation Strategies for Rebuilding a Relationship, How to Use Tradeoffs to Create Value in Your Negotiations. Samsung Opening Br. 1. Next hearing due for November 2013 Conclusion Infringement is a common case To protect its intellectual property Apple does not spare anyone Litigation not beneficial for the two . 3491 at 8. . The user market is much skewed in different directions. In 2007 the first iPhone was unveiled to the world. For two days in late May 2012, Apple CEO Tim Cook and Samsung CEO Gee-Sung Choi met with a judge in the U.S. District Court of Northern California in an attempt to reach a settlement in a high-profile U.S. patent case, a sobering example of negotiation in business. It is a visual form of patent, that deals with the visual and overall look of a product. of Sacramento, 652 F.3d 1225, 1235 n.11 (9th Cir. By this time, none of the 16 infringing smartphones was available in the market any longer. Don Burton, Inc. v. Aetna Life & Cas. UNITED STATES DISTRICT COURT NORTHERN DISTRICT OF CALIFORNIA SAN JOSE DIVISION. Samsung disagrees. for S. Apple argues that the Court did not err by declining to give Proposed Jury Instruction 42.1 because there was not an adequate foundation in the evidence for it. at 10-11. It was a computer encased in a wooden block. Conversely, Apple's fourth proposed factor, the infringer's intent in copying the patented design, finds no support in the text of the statute. provides insight into which portions of the underlying product the design is intended to cover, and how the design relates to the product as a whole." 2013. 3490-2 at 18. To remove him, Steve initiated a move that backfired and ended up removing himself from the board. At the 2013 trial, Samsung argued in a Rule 50(a) motion for judgment as a matter of law at the close of Apple's case that "Apple presents no evidence of apportionment." Casetext, Inc. and Casetext are not a law firm and do not provide legal advice. ECF No. Apple is one of Samsung's biggest phone component customers and Samsung is one of Apple's biggest suppliers. 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