July 24, 2012

Apple Wants $2.5 Billion From Samsung

Michael Harper for - Your Universe Online

Apple and Samsung will finally head to trial next week to settle their on-going dispute over design cues and patents. According to the inimitable FOSS Patents blog, both companies have been hard at work filing last minute claims against one another. According to some recently-filed court documents, Apple isn´t only taking Samsung to task over their alleged infringement in their Galaxy Nexus, Galaxy Tab, et al devices“¦they´re also asking Samsung to pay upwards of $2 billion for their alleged wrongdoings. According to the court filing, “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 conservatively estimates that as of March 31, 2012, Samsung has been unjustly enriched by about [redacted; presumably $2 billion] and has additionally cost Apple about $500 million in lost profits. Apple also conservatively estimates that it is entitled to over $25 million in reasonable royalty damages on the proportionately small set of remaining sales for which it cannot obtain an award of Samsung's profits or Apple's own lost profits, for a combined total of $2.525 billion.”

Apple isn´t able, of course, to collect both royalties and profits from one device. Therefore, they are focusing their $2.5 billion figure on claims related to design infringement, allowing Apple to request both lost profits and profits unfairly earned by Samsung. Apple has broken down how they came up with their $2.5 billion figure, placing dollar amounts on each infringement. According to Florian Mueller with the FOSS patents blog, the tally, per unit, is as follows:

  • $2.02 for the over-scrolling– or rubber banding– animation as regards to the ℠318 patent.
  • $3.10 for the scrolling API noted in the ℠915 patent
  • $2.02 for the tap to zoom and navigate functionality described in the ℠163 patent
  • a whopping $24 for the use of any of Apple´s design patents or violation of trade dress rights.

In addition to asking for a hefty paycheck from Samsung, Apple´s filings also suggest how much they think they should pay for royalties for Samsung´s 3G FRAND patents. The Galaxy maker has been asking for royalty of 2.4% of every 3G Apple device sold. Apple, on the other hand, feels that a royalty of one-half percent per unit is more fair, saying that the royalty should be calculated on the cost of the broadband processor rather than the entire device. In other words, Apple feels they should only pay for the part of the patent they use, rather than paying a royalty for the entire phone.

The two rivaling smartphone makers will finally face one another in a California court room next week, July 30th. In the long and winding road which has led to this moment, the two companies have been asked to pare down their claims against one another and their CEOs have been ordered to try and settle their disputes in a court-ordered mediation. Judge Lucy Koh has even placed preliminary injunctions on Samsung´s Galaxy Tab 10.1 tablet and Galaxy Nexus smartphones. According to Reuters, the two CEOs met together once more to settle the dispute, but were unable to do so.