Apple demands US$2.5 billion in damages from Samsung

Macworld Australia Staff
25 July, 2012
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Apple is demanding US$2.525 billion from Samsung for “copying” its smartphone and tablet products and infringing its patents in a damages claim filed ahead of a California trial between the two companies.

Apple’s claim is divided into two sections according to Foss Patents; the first for US$2.5 billion is a “disgorgement of Samsung’s total profits with products that infringed its design patents”, while the second for US$25 million relates to a ‘reasonable royalty’ claim to different products.

“The $2.525 billion amount could still increase. Apple argues that Samsung infringed wilfully. As a result, some components of that overall figure could be tripled,” Foss Patents reports.

In the damages claim Apple believes “Samsung has been unjustly enriched by about [redacted; presumably US$2 billion] and has additionally cost Apple about US$500 million in lost profits. Apple also conservatively estimates that it is entitled to over US$25 million in reasonable royalty damages”.

“Samsung …chose to compete by copying Apple. Samsung’s infringing sales have enabled Samsung to overtake Apple as the largest manufacturer of smartphones in the world. Samsung has reaped billions of dollars in profits and caused Apple to lose hundreds of millions of dollars through its violation of Apple’s intellectual property,” Apple claimed.

The total amount is a summation of Apple pricing US$3.10 for the ‘scrolling API’ patent, US$2.02 per unit for the ‘overscroll bounce’ patent, US$2.02 per unit for the ‘tap to zoom and navigate’ patent and US$24 for each unit that has infringed Apple’s design patents.

The price of each alleged infringement is based upon the demand for features in products, for example the studies determine how much a consumer is willing to pay above the basement cost for a particular feature.

According to Foss Patents “a ‘conjoint survey’ conducted by one of Apple’s experts ‘shows that Samsung’s customers are willing to pay between US$90 and US$100 above the base price of a US$199 smartphone and a US$499 tablet, respectively, to obtain the patented features covered by Apple’s utility patents”.

Samsung’s counterclaims are based upon two wireless standard-essential patents (SEPs) and three non-SEPs, claims which Apple have offered remunerations of US$0.49 per unit for each patent infringed.

The Californian trial is just one of 50 international lawsuits between the warring companies.



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