Apple Inc. v. Samsung Electronics Co., Ltd.
Apple Inc. v. Samsung Electronics Co., Ltd. was the first of a series of ongoing lawsuits between Apple Inc. and Samsung Electronics regarding the design of smartphones and tablet computers; between them, the companies made more than half of smartphones sold worldwide as of July 2012. In the spring of 2011, Apple began litigating against Samsung in patent infringement suits, while Apple and Motorola Mobility were already engaged in a patent war on several fronts. Apple's multinational litigation over technology patents became known as part of the mobile device patent wars: extensive litigation in fierce competition in the global market for consumer mobile communications. By August 2011, Apple and Samsung were litigating 19 ongoing cases in nine countries; by October, the legal disputes expanded to ten countries. By July 2012, the two companies were still embroiled in more than 50 lawsuits around the globe, with billions of dollars in damages claimed between them. While Apple won a ruling in its favor in the U.S., Samsung won rulings in South Korea, Japan, and the UK.
Apple sued its component supplier Samsung, alleging in a 38-page federal complaint on April 15, 2011 in the United States District Court for the Northern District of California that several of Samsung's Android phones and tablets, including the Nexus S, Epic 4G, Galaxy S 4G, and the Samsung Galaxy Tab, infringed on Apple’s intellectual property: its patents, trademarks, user interface and style. Apple's complaint included specific federal claims for patent infringement, false designation of origin, unfair competition, and trademark infringement, as well as state-level claims for unfair competition, common law trademark infringement, and unjust enrichment.
Apple's evidence submitted to the court included side-by-side image comparisons of iPhone 3GS and i9000 Galaxy S to illustrate the alleged similarities in packaging and icons for apps. However, the images were later found to have been tampered with in order to make the dimensions and features of the two different products seem more similar, and counsel for Samsung accused Apple of submitting misleading evidence to the court.
Samsung counter-sued Apple on April 22, 2011, filing federal complaints in courts in Seoul, Tokyo and Mannheim, Germany, alleging Apple infringed Samsung's patents for mobile-communications technologies. By summer, Samsung also filed suits against Apple in the British High Court of Justice, in the United States District Court for the District of Delaware, and with the United States International Trade Commission (ITC) in Washington D.C., all in June 2011.
South Korean courts 
In late August 2012 a three-judge panel in Seoul Central District Court delivered a split decision, ruling that Apple infringed two Samsung technology patents, while Samsung violated one of Apple's patents. The court awarded small damages to both companies and ordered a temporary sales halt of the infringing products in South Korea, though none of the banned products were the latest models of Samsung or Apple devices. The Seoul Central District Court ruled that Samsung violated one of Apple’s utility patents, over the so-called “bounce-back” effect in iOS, and that Apple was in violation of two of Samsung’s wireless patents. Apple’s claims that Samsung copied the designs of the iPhone and iPad were denied.
The court also ruled that there was "no possibility" that consumers would confuse Samsung and Apple smartphones, and that Samsung's smartphone icons did not infringe Apple's patents.
Japanese courts 
Samsung's complaint in Japan's Tokyo District Court cited two infringements. Apple has filed other patent suits in Japan against Samsung, most notably one for the "Bounce-Back" feature. Samsung has also sued Apple, claiming the iPhone and iPad infringe on Samsung patents.
On Friday, August 31, 2012, The Tokyo District Court ruled that Samsung’s Galaxy smartphones and tablets did not violate an Apple patent on technology that synchronizes music and videos between devices and servers. The three-judge panel in Japan also awarded legal costs to be reimbursed to Samsung. Presiding Judge Tamotsu Shoji said: "The defendant's products do not seem like they used the same technology as the plaintiff's products so we turn down the complaints made by [Apple]." An unnamed spokesperson for Samsung said: "[We will] continue to offer highly innovative products to consumers, and continue our contributions toward the mobile industry's development."
Ronald A. Cass, a legal consultant and former vice chairman of the International Trade Commission, commented: “I wouldn’t expect there to be a lot of judgments like this one." - Quote regards to the verdict from the American courts not the Japanese courts in reference to how patent disputes are heard by juries.
German courts 
In August 2011, the Landgericht court in Düsseldorf, Germany granted Apple's request for an EU-wide preliminary injunction barring Samsung from selling its Galaxy Tab 10.1 device on the grounds Samsung's product infringed on two of Apple's interface patents. After Samsung's allegations of evidence tampering were heard, the court rescinded the EU-wide injunction and granted Apple a lesser injunction that only applied to the German market. Samsung also pulled the Galaxy Tab 7.7 from Berlin's IFA electronics fair due to the ruling preventing marketing of the device, before the court was set to make its ruling in September 2011. According to an estimate by Strategy Analytics, the impact of on[clarification needed] Samsung, in Germany, could have cost up to half a million unit sales. In the same time period and in similar cases of related legal strategy, Apple filed contemporaneous suits against Motorola with regard to the Xoom and against German consumer electronics reseller JAY-tech in the same German court, both for design infringement claims seeking preliminary injunctions.
On September 9, 2011, the German court ruled in favor of Apple, with a sales ban on the Galaxy Tab 10.1. The court found that Samsung had infringed Apple's patents. Presiding judge Johanna Brueckner-Hoffmann said there was a "clear impression of similarity". Samsung would appeal the decision.
In March 2012, the Mannheim state court judges dismissed both the Apple and Samsung cases involving ownership of the "slide-to-unlock" feature used on their respective smartphones. The New York Times reported the German courts were at the center of patent fights among technology company rivals. In July 2012, the Munich Higher Regional Court Oberlandesgericht München affirmed the lower Regional Court's denial of Apple's motion for a preliminary injunction on Apple's allegation that Samsung infringed Apple's "overscroll bounce" patent; the appellate court's appealable ruling affirmed the lower court's February decision doubting the validity of Apple's patent. On September 21, Mannheim Regional Court ruled in favour of Samsung in that it did not violate Apple’s patented features in regards to touch-screen technology.
French and Italian courts 
Shortly after the release of the iPhone 4S, Samsung filed motions for injunctions in courts in Paris and Milan to block further Apple iPhone sales in France and Italy, claiming the iPhone infringed on two separate patents of the Wideband Code Division Multiple Access standard. Samsung reportedly singled out the French and Italian markets as key electronic communications markets in Europe, and by filing suit in a different court, avoided going back to the German court where it had lost a round earlier in its battle with Apple.
Dutch courts 
On August 24, 2011, The Hague banned three Samsung telephone models following the Apple suit. On September 26, Samsung asked the court for an injunction on sale Apple's iPad and iPhones, on the grounds that Apple does not have the licenses to use 3G mobile technology. On October 14, the court ruled, denying the sales ban and stating that because 3G was an industry standard, Samsung's licensing offer had to meet FRAND (fair, reasonable and nondiscriminatory) terms. The court found that Samsung's fee was unreasonable, but noted that if the companies cannot make a fair and reasonable licensing fee that Samsung could open a new case against Apple.
In late October 2011, the civil court in The Hague ruled for Apple in rejecting Samsung's infringement arguments and denied Samsung's motion made there; Samsung appealed the decision and in January 2012, the Dutch appeals court overruled the civil court decision, rejecting Apple's claim that Samsung's Galaxy Tab 10.1 infringed its design rights.
Australian courts 
Also in early 2011, an Australian federal court granted Apple's request for an injunction against Samsung's Galaxy Tab 10.1. Samsung agreed to an expedited appeal of the Australian decision in the hope that if it won its appeal before Christmas, it might salvage holiday sales that it would otherwise lose. Ultimately, the injunction Apple sought to block the Tab 10.1 was denied by the High Court of Australia. In July 2012 an Australian judge started hearing the companies' evidence for a trial anticipated to take three months.
British courts 
Samsung applied to the High Court of Justice, Chancery Division, in Samsung Electronics (UK) Limited & Anr v. Apple Inc., for a declaration that its Galaxy tablets were not too similar to Apple's products. Apple counterclaimed, but Samsung prevailed after a British judge ruled Samsung's Galaxy tablets were not “cool” enough to be confused with Apple’s iPad. In July 2012, British judge Birss denied Samsung's motion for an injunction blocking Apple from publicly stating that the Galaxy infringed Apple's design rights, but ordered Apple to publish a disclaimer on Apple's own website and in the media that Samsung did not copy the iPad. The judge stayed the publishing order, however, until Apple's appeal was heard in October 2012. When the case reached the court of appeal, the previous ruling was supported, meaning that Apple is required to publish a disclaimer on Apple's own website and in the media that Samsung did not copy the iPad.
U.S. courts 
First US Trial 
Apple accused Samsung of infringing on three utility patents (United States Patent Nos. 7,469,381, 7,844,915, and 7,864,163) and four design patents (United States Patent Nos. D504,889, D593,087, D618,677, and D604,305). Samsung accused Apple of infringing on United States Patent Nos. 7,675,941, 7,447,516, 7,698,711, 7,577,460, and 7,456,893. One 2005 design patent "at the heart of the dispute is Design Patent 504,889", which consists of a one-sentence claim about the ornamental design of an electronic device, accompanied by nine figures depicting a thin rectangular cuboid with rounded corners. A U.S. jury trial was scheduled for July 30, 2012 and calendered by the court through September 7, 2012. Both Phil Schiller and Scott Forstall testified on the Apple v. Samsung trial.
US verdict 
On August 24, 2012 the jury returned a verdict largely favorable to Apple. It found that Samsung had willfully infringed on Apple's design and utility patents and had also diluted Apple's trade dresses related to the iPhone. The jury awarded Apple $1.049 billion in damages and Samsung zero damages in its counter suit. The jury found Samsung infringed Apple's patents on iPhone's "Bounce-Back Effect" (US Patent No.7,469,381), "On-screen Navigation (US Patent No.7,844,915), and "Tap To Zoom" (US Patent No.7,864,163), and design patents that covers iPhone's features such as the "home button, rounded corners and tapered edges" (US D593087) and "On-Screen Icons" (US D604305). Design Patent 504,889 (describing the ornamental design of the iPad) was one of the few patents the jury concluded Samsung had not infringed. This amount is functionally reduced by the bond posted by Apple for the injunction granted during the trial (see below).
Apple's attorneys filed a request to stop all sales of the Samsung products cited in violation of the US patents, a motion denied by Judge Koh on Dec 17.
On October 23, 2012, U.S. Patent and Trademark Office tentatively invalidated Apple's bounce back patent (US Patent No. '381) possibly affecting the ruling in the Apple v. Samsung trial.
Injunction of US sales during first trial 
The injunction Apple sought in the U.S. to block Samsung smartphones such as the Infuse 4G and the Droid Charge was denied. Judge Lucy H. Koh ruled that Apple's claims of irreparable harm had little merit because although Apple established a likelihood of success at trial on the merits of its claim that Samsung infringed one of its tablet patents, Apple had not shown that it could overcome Samsung's challenges to the patent's validity. Apple appealed Judge Koh's ruling, and on May 14, 2012, the appeals court reversed and ordered Judge Koh to issue the injunction. The preliminary injunction was granted in June 2012, preventing Samsung from making, using, offering to sell, selling, or importing into the U.S. the Galaxy Nexus and any other of its technology making use of the disputed patent. Simultaneously, Apple was ordered to post a $95.6 million dollar bond in the event that Samsung prevailed at trial.
Following the trial, in which the Nexus was found not to infringe Apple's patents, Samsung filed an appeal to remove the preliminary injunction. On October 11, 2012, the appeals court agreed and vacated the injunction.
First trial appeal 
There was an interview given by the jury foreman, where, at the 3 minute mark in the video, the jury foreman Hogan said: "the software on the Apple side could not be placed into the processor on the prior art and vice versa, and that means they are not interchangeable," and at the 2:42-2:45 minute mark, in which Hogan states "each patent had a different legal premise." Groklaw reported that this interview indicates the jury may have awarded inconsistent damages and ignored the instructions given to them. In an article on Gigaom, Jeff John Roberts contended that the case suggests that juries should not be allowed to rule on patent cases at all. Scott McKeown, however, suggested that Hogan's comment may have been poorly phrased.
Some have claimed[who?] that there are a few oddities with Samsung's US Patent discussed by Hogan during the interview, specifically that the '460 patent has only one claim. Most US patents have between 10 - 20 separate claims, most of which are dependent claims. This patent was filed as a division of an earlier application, possibly in anticipation of litigation, which may explain the reduced number of claims. The specifics of this patent have not been discussed in the Groklaw review or the McKeown review because most[who?] believe that the foreman misspoke when he mentioned the number of the patent in question; a more detailed interview with the BBC  made it clear that the patent(s) relevant to the prior art controversy were owned by Apple, not Samsung, meaning that his mention of the "460 patent" was a mistake.
On Friday, September 21, 2012, Samsung requested a new trial from the judge in San Jose arguing that the verdict was not supported by evidence or testimony, that the judge imposed limits on testimony time and the number of witnesses prevented Samsung from receiving a fair trial, and that the jury verdict was unreasonable. Apple filed papers on September 21 and 22, 2012 seeking a further amount of interest and damages totaling $707 million. A hearing has been scheduled in U.S. District Court on December 6, 2012 to discuss these and other issues.
On October 2, 2012, Samsung appealed the decision to the United States Court of Appeals for the Federal Circuit, requesting that Apple's victory be thrown out, claiming that the foreman of the jury had not disclosed that he had been sued by Seagate Technology Inc., his former employer, and which has a strategic relationship with Samsung, despite having been asked during jury selection if he had been involved in lawsuits. Samsung also claimed that the foreman had not revealed a past personal bankruptcy. The foreman responded that he had been asked whether he had been asked during jury selection whether he had been involved in any lawsuits during the past 10 years, so that the events claimed by Samsung occurred before that time frame, although his claim is not consistent with the actual question he was asked by the Judge. Apple has similarly appealed the decision vacating the injunction on Samsung's sales.
Second US Trial 
Apple has filed a new US lawsuit on August 31, 2012, asserting 17 more of Samsung products violate Apple patents. The four major products being cited are the Galaxy S III, Verizon Galaxy S III, Galaxy Note and Galaxy Tab 10.1.
The ruling in the landmark patent case raised controversies over the impact on the consumers and the smartphone industry. The jury's decision was criticized for being Apple-friendly possibly leading to increased costs for Android smartphone users because of licensing fees to Apple. Some raised the question about lay juries in the U.S. patent system. i.e., how qualified the jury members were to determine who was at fault in a complex patent case. It later turned out that the jury foreman, Velvin Hogan, was an electrical engineer and a patent holder himself. His post-verdict interviews with numerous media outlets raised a great deal of controversies over his role as the jury foreman. He told the Bloomberg TV that his experience with patents had helped to guide the jurors’ decisions in the trial. A juror Manuel Ilagan said in the interview with CNET a day after the verdict that “Hogan was jury foreman. He had experience. He owned patents himself…so he took us through his experience. After that it was easier.” The jury instructions stated that jurors can make decisions based solely on the law as instructed and "not based on your understanding of the law based on your own cases." Hogan also told the Reuters news agency that the jury wanted to make sure the message it sent was not just a slap on the wrist and wanted to make sure it was sufficiently high to be painful, but not unreasonable. His remark does not corroborate with jury instructions, which state that "the damages award should put the patent holder in approximately the financial position it would have been in had the infringement not occurred" and "it is meant to compensate the patent holder and not to punish an infringer." Samsung has appealed against the decision claiming jury misconduct. If the appeal court finds that there was juror misconduct, Samsung can be given a new trial. Other questions were raised about the jury's quick decision. The jury had been given more than 700 questions including highly technical matters to reach the verdict and awarded Apple more than $1 billion in damages after less than three days of deliberations. It was claimed that the nine jurors did not have a chance to read the jury instructions. A juror stated in an interview with CNET that the jury decided after the first day of deliberations that it believed Samsung was in the wrong.
See also 
- Apple Inc. litigation
- Motorola Mobility v. Apple Inc.
- Smartphone wars
- U.S. patent law
- Markman v. Westview Instruments, Inc.
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Further reading 
- Carrier, Michael A. (May 3, 2012). "A Roadmap to the Smartphone Patent Wars and FRAND Licensing" (PDF). CPI Antitrust Chronicle (Social Science Electronic Publishing) 2. Retrieved July 27, 2012.
- Parish, Joseph; The Verge editors (November 2, 2011). "Apple vs. Samsung: the complete lawsuit timeline". The Verge. Vox Media. Retrieved August 12, 2012.