conclusion of apple vs samsung case

Id. at 57-58. Id. Moreover, Apple offers no reason why ordinary discovery would not be sufficient to allow a design patent plaintiff to carry its burden of persuasion on identifying the relevant article of manufacture. The case began in 2011 and went on to go worldwide. . A federal court in Australia, December 2011 April 2012: Apple failed to block Samsung from selling some 4G-enabled products to US consumers. They released commercials that defame other pioneer brands openly. ECF No. Cir. Success! ." 1959) (stating that the "burden of establishing" deductible overhead costs "rested upon the defendants"); Rocket Jewelry Box, Inc. v. Quality Int'l Packaging, Ltd., 250 F. Supp. . Id. Finally, having mentioned the possible remedy to Apple vs. Samsung case, its in the best interest of the two companies that they settle the case by prioritizing legal action. The U.S. Supreme Court framed the question before it as follows: "[T]he Federal Circuit identified the entire smartphone as the only permissible 'article of manufacture' for the purpose of calculating 289 damages because consumers could not separately purchase components of the smartphones. Cir. Id. Hunter v. Cty. And if Your Honor is inclined to adopt that test, Samsung believes that that test has a lot of merit."). According to Samsung, "[t]hese 'income method' opinions used Samsung's 'actual profits' as the measure of what Samsung would earn from the components 'embodying the patented [designs].'" Comme il s'agit d'un smartphone haut de gamme, il fallait videmment s . First, it argued that Samsung's sales eroded Apple's design and brand distinctiveness, resulting in a loss of goodwill. 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. The Court addresses these arguments in turn, and then the Court assesses the United States' proposal. at 3. of Sacramento, 652 F.3d 1225, 1235 n.11 (9th Cir. Samsung ofcourse declined the offer, stating that the company hasn't done anything wrong and is not involved in copying Apple or violating any of the trademarks mentioned in the lawsuit. Cir. Apple claimed that Samsung had copied the iPhone, leading to a long-running series of lawsuits that were only finally resolved in 2018, with Apple being awarded US$539 million. Br., 2016 WL 3194218, at *30-31. FAQ. The two companies have different business models. The jury in the partial retrial on damages awarded Apple $290,456,793, which the district court upheld over Samsung's second post-trial motion. Cost: $0 (Free) Limited Seats Available. at 23. Id. . 3017. A Case Study of Conflict Management and Negotiation, Advanced Negotiation Strategies and Concepts: Hostage Negotiation Tips for Business Negotiators, Conflict Management Skills When Dealing with an Angry Public, Away from the Podium and Off to the Balcony: William Ury Discusses the Debt Ceiling Negotiations Facing Obama and US Congressional Republicans, Group Decision Making: Best Practices and Pitfalls. Moreover, Samsung argued that "[t]he record contains no evidence that the entire sales value of Samsung's products was attributable to their outer casings or GUI, as opposed to the numerous noninfringing technological components that enable the devices to function and drive consumer choice." See ECF No. Schaffer v. Weast, 546 U.S. 49, 56 (2005) (quoting J. They are actingthey are assuming that the article to which the design is applied is the entire product, which is erroneous as a matter of law. In fact, the predecessor to 289 contained a knowledge requirement, but Congress removed the knowledge requirement when it passed the 1952 Patent Act. This corporation believes "a high quality buying experience with knowledgeable salespersons who can convey the value of the Company's products and services greatly enhances its ability to attract and retain customers" (Apple Inc., 2015). . at 994-96. What's the difference between a utility patent and a design patent? at 22 (citation omitted). Legal Case Review Apple vs. Samsung by Michel Andreas Kroeze BIA512 A legal case review submitted in partial fulfillment of the requirements for the degree of BACHELOR OF ARTS IN INTERACTIVE ANIMATION At SAE Institute Amsterdam 29/04/2013 Word count: 4332 Table of contents 1. . See 35 U.S.C. , all of those cases stand for the proposition that you cannot get infringer's profits on the entire device and you can only do it for the actually infringing feature." The Court holds that if the plaintiff has met its initial burden of production on identifying the relevant article of manufacture for the purpose of 289 and the defendant disputes the plaintiff's identification of the relevant article of manufacture, then the burden of production shifts to the defendant to come forward with evidence supporting its asserted article of manufacture. Accordingly, Samsung urges the Court to "keep how the product is sold totally out of the test for determining the relevant article of manufacture. The Instructions Were Legally Erroneous. We have grown from that time at a rapid scale and efficiency, we have seen multifold growth in technology. Samsung relied on Bush & Lane Piano Co. v. Becker Bros., 222 F. 902 (2d Cir. at 9 (quoting 17 U.S.C. The Federal Circuit noted that this theory essentially advocated "apportionment," which would "require[] [the patentee] to show what portion of the infringer's profit, or of his own lost profit, was due to the design and what portion was due to the article itself." "In Dobson v. Hartford Carpet Co., the lower courts had awarded the holders of design patents on carpets damages in the amount of 'the entire profit to the [patent holders], per yard, in the manufacture and sale of carpets of the patented designs, and not merely the value which the designs contributed to the carpets.'" 1839 at 2088-92 (testimony of Apple's damages expert at 2012 trial); ECF No. The question before us is whether that reading is consistent with 289. An amount of $1.049 billion was given to Apple in damages. 3290. As relevant here, Apple obtained the following three design patents: (1) the D618,677 patent (the "D'677 patent"), which covers a black rectangular front face of a phone with rounded corners; (2) the D593,087 patent (the "D'087 patent"), which covers a rectangular front face of a phone with rounded corners and a raised rim; and (3) the D604,305 patent (the "D'305 patent"), which covers a grid of 16 colorful icons on a black screen. 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. In its order on July 28, 2017, the Court held that "the jury was not provided an instruction that stated the law as provided by the United States Supreme Court decision in this case that an article of manufacture can be 'a product sold to a consumer [or] a component of that product.' 2011) (citation omitted); see also Norwood v. Vance, 591 F.3d 1062, 1067 (9th Cir. It tops in shipment volume & market share. As a result, on March 22, 2016, this Court vacated the March 28, 2016 trial and stayed the case. Apple does not specify in its briefs whether it means the burden of production or persuasion, but at the October 12, 2017 hearing, Apple clarified that its position is that both burdens should shift to the defendant. But with its S23 series, and more specifically the Galaxy S23 Ultra, Samsung upped its game quite significantly. Since then, the number of patents under dispute has skyrocketed, according to the Korea Times, as has the number of courts involved in various countries. Id. An appeals court ruled Apple could not legally trademark the iPhone's appearance in May of 2015, which meant Samsung was forced to pay only around $548 million. 1903 at 72 (jury instruction from 2012 trial assigning Samsung the burden of proving deductible expenses); ECF No. They have not factored out, for example, the technology and what drives those profits." In the original 2012 case, Apple sued Samsung saying it copied various design patents of the iPhone. Samsung Samsung objects to this proposed burden-shifting framework. To summarize, the Court adopts the four-factor test for determining the relevant article of manufacture for the purpose of 289 proposed by the United States in its amicus brief before the U.S. Supreme Court. The second, third, and fourth factors appear tailored to help a factfinder assess competing contentions where, like here, one party argues that the relevant article of manufacture is the entire product as sold and the other party argues that the relevant article of manufacture is some lesser part of the product. On July 28, 2017, following briefing by the parties, this Court ruled that Samsung had not waived the article of manufacture issue because Samsung had objected to the exclusion of Proposed Jury Instruction 42.1. MARKETING STRATEGY AND 4Ps ANALYSIS: APPLE VS. SAMSUNG I. Similarly, multiple witnesses testified about how smartphones are assembled and how the screen was separate from internal components. So at this time, it was in good economic condition. at 15, 20-21. See, e.g., S.E.C. Is Filing A Provisional Patent Application A Smart Decision? Souring that relationship with. Cir. The U.S. Supreme Court framed the issue before it as follows: Although Samsung cites questions posed by U.S. Supreme Court Justices during oral argument to support its test, see Samsung Response at 6, it is the text of the written opinion that controls. Had the Court agreed to give some version of Proposed Jury Instruction 42.1, Samsung could have identified a smaller article of manufacture in its closing argument. However, the Court was unable to determine whether the jury instructions as given constituted prejudicial error until it resolved other issues, including the test for determining the relevant article of manufacture for the purpose of 289 and which party bore the burden of proving the relevant article of manufacture and the amount of total profits. Great! The United States does not advocate shifting the burden of persuasion to the defendant. See Jury Instructions at 15-16, Columbia Sportswear N. Id. 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. 17:8-17:9. 15-777), 2016 WL 3194218, at *9. 1610 at 313-17 ("[T]here's a piece of glass [for the screen] and then underneath that is a display and have to glue that on top."). applies the patented design . The trial would begin on March 28, 2016. Save my name, email, and website in this browser for the next time I comment. The same with Apple, Samsung has its downsides as well. 2783 at 40. According to Bloomberg's supply chain analysis, Apple accounts for 9% of Samsung's revenue, which makes Apple Samsung's largest costumer. smartphones resemble the iPhone 3g and iPhone 3gs in shape). Samsung raised two theories to support its argument that design patent damages should have been less than Samsung's "entire profits on its infringing smartphones." J. L. & TECH. The Patent Act of 1952 codified that "total profit" remedy for design patent infringement in 289, see id., and the Federal Circuit in Nike affirmed that 289 did not require apportionment, see 138 F.3d at 1441-43. After this and all the cases in between this first court case, Samsung didnt stay shut. The U.S. Supreme Court's decision did not rule out the possibility that the relevant article of manufacture could be a multicomponent product. Id. Apple urges the Court to adopt a burden-shifting framework for both identifying the relevant article of manufacture and proving total profit on the sale of that article, whereby the "plaintiff bears the initial burden of proving that the defendant applies the patented design to a product that was sold and further proving revenues from the sale." 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 contends that this is precisely the reasoning that the Federal Circuit adopted in the instant case, and it is also the reasoning that the U.S. Supreme Court rejected. 3198 340 (using consumer survey information to indicate a split between the profit attributable to the design of Samsung's phones and its technology). Negotiation in Business Without a BATNA Is It Possible? Be it flying, cooking, innovating, and even revolutionizing the whole world with unbelievable technology. at 9, Samsung Elecs. Notably, 99 percent of the jury verdict was based on Samsung's infringement of design patents, with only about 1 percent (around $5 million of the approximately $540 million jury award) based on Samsung's infringement of utility patents. Guhan Subramanian is the Professor of Law and Business at the Harvard Law School and Professor of Business Law at the Harvard Business School. See id. Apple argues that "[i]f the defendant typically sells its asserted article of manufacture as part of a unitary product, the factfinder may reasonably infer that the defendant has applied the patented design to the product as a whole." OVERVIEW OF THE APPLE V. SAMSUNG CASE Apple and Samsung are currently involved in the high stakes patents dispute. This result is, first of all, the law of the case, and Samsung did not appeal it. Corp., 890 F.2d 1215, 1232 (D.C. Cir. . Given that Samsung is one of Apples biggest suppliers, the companies had a strong incentive to move beyond their dispute and build on their ongoing partnership. See ECF No. Universe, which many consider an immediate opponent of the apple company iPhone. The D'087 patent claims a rectangular front face with rounded corners, with a bezel, but without black shading, and does not claim the sides, back, top, and bottom of the device or the home button. v. First City Fin. Id. The United States proposed that the U.S. Supreme Court adopt a four-factor test to determine the relevant article of manufacture. Apple says. Samsung however seemed like it was ignoring Apples claims of plagiarism and trying to put the burden on Apple themselves. The jury ordered Samsung to pay Apple $1. Apple Opening Br. Behemoth organizations like Apple and Samsung. After releasing the iPhone in 2007, Apple obtained design patents on a number of phone design features. Samsung has been accused by Apple of violating patents and: - 1) Copying their icon arrangement display pattern. 05 billion. 2822. ECF No. Id. 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. Check your inbox and click the link. Id. The Court finds that Proposed Jury Instruction 42.1 would have remedied the error because it would have clarified for the jury that the relevant article of manufacture could be something other than the entire product as sold. 1st Sess., 1 (1886)); see also Supreme Court Decision, 137 S. Ct. at 433 (citing S. REP. NO. ECF No. 2017) (unpublished) ("Federal Circuit Remand Decision"). But this is an issue that can be argued to the factfinder in the context of the facts of a given case; it is not a reason to altogether exclude from consideration the scope of the claimed design. We can custom-write anything as well! On April 15, 2011, Apple sued Samsung for, among other things, design patent infringement, utility patent infringement, and trade dress infringement. to the district court's attention,' the court commits error if it 'omit[s] the instruction altogether, rather than modifying it to correct the perceived deficiency.'" "Absent some reason to believe that Congress intended otherwise . Indeed, in the closest analogous contextidentification of the smallest salable patent-practicing unit for utility patent damagesthe burden of persuasion rests on the plaintiff, as explained above. The U.S. Supreme Court's decision, Apple argues, did not go so far. See 35 U.S.C. Apple Vs. Samsung Case Considered By Law Essay Example. at 113-14. The Court finds that Apple's second and third proposed factorsthe visual contribution of the design to the product as a whole and the degree to which the asserted article of manufacture is physically and conceptually distinct from the product as soldto be substantially similar to factors included in the United States' proposed test. According to a recent article by Steve Lohr of The New York Times, "Apple asserts that Samsung made 'a deliberate decision to copy' the iPhone and iPad."On the other side of the legal battle, Samsung contends . The Court gave Final Jury Instruction 31 on design patent damages, which was substantially the same as the 2012 trial's Final Jury Instruction 54, edited only to reflect the fact that liability had already been determined. As the smartphone market and the hype around this continues to grow, smartphone leaders fight for greater dominance in this segment of the product. Apple Product Line . at 1005. Cusumano, M 2013, 'The Apple-Samsung lawsuits', Communications of the ACM, vol. On September 28, 2017, the parties submitted cross-responses. Essays Topics > Essay on Business. For the reasons below, the Court disagrees. 17:12-17:20 ("[W]hat the sale might be relevant to is - might be relevant to - is step 2, what's the quantum of profit? for S. ECF No. However, once the plaintiff satisfies its initial burden of production, the burden of production shifts to the defendant to come forward with evidence to support any alternative article of manufacture and to prove any deductible expenses. As the U.S. Supreme Court has explained, Congress enacted the predecessor to 289 in 1887 in response to the U.S. Supreme Court's decisions in what are known as the Dobson cases. 1116, 11120 (S.D.N.Y. In the 60s it entered the smartphone segment and today is the largest manufacturer of smartphones, televisions, and memory chips in the world. The document stated that Samsung will pay 30$ on selling every smartphone and 40$ on every tablet. Please try again. Conversely, Apple's fourth proposed factor, the infringer's intent in copying the patented design, finds no support in the text of the statute. See, e.g., U.S. Patent No. Accordingly, the plaintiff must bear the burden of persuasion in identifying the relevant article of manufacture for the purpose of 289 and proving the defendant's total profit on that article. Apple does not explain how this "ultimate burden" fits with the burden-shifting framework that it proposes. The number of cases reached four dozen by mid-2012, wherein both firms claimed billions of dollars in damages. 1839 at 201-02. This setting should only be used on your home or work computer. Apple's advantages over Samsung: Not excessively higher prices at the top of the range segment. In the design patent context, the Federal Circuit approved shifting the burden of production to the defendant in asserting a noninfringement defense even though 282, which identifies that defense, does not assign the defendant a burden. Samsung Opening Br. Koh conveyed that Apples request to prevent Galaxy Tab sales in the US had to wait until the completion of court procedures. 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. Apple's argument that Samsung's failure to actually identify a smaller article of manufacture at trial would have precluded the jury from finding any article of manufacture other than the entire phone is not persuasive. Conclusion: In conclusion, both devices come at a close tie and both are recommended for productivity users who need a business tablet. The icons on the iPhone were strikingly similar to those in Samsungs phone. May 23, 2014). The Rivalry Inception of Samsung and Apple, How Samsung and Apple Turned From Friends to Foe, Biggest Media Companies in the United States, India on the Rise: Achieving a $5 Trillion Economy, 5 Tips to Supercharge Your Manufacturing Startup, How Cricbuzz Became the Biggest Cricketing News Sensation, 21 Profitable Business Ideas for Couples to Start this Valentine's Day, 2022 - A Remarkable Year for Indian Startups, Rupee vs. Dollar - Journey Since Independence, Spy on your Competitors (Use code ST30 for 30% off). 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. The Court held a hearing on October 12, 2017. In this case - the Samsung Galaxy S21 and iPhone 12. Second, calculate the infringer's total profit made on that article of manufacture." The two companies have repeatedly accused each other of copying the appearance and functions of their smartphones and tablet devices. Where a statute is silent on the allocation of the burden of persuasion, the Court "begin[s] with the ordinary default rule that plaintiffs bear the risk of failing to prove their claims." The D'677 patent claims a design for a "black, rectangular front glass face with rounded corners" and does not claim the surrounding rim (bezel), the circular home button on the front, or the sides, top, bottom, or back of the device. The plaintiff bears the burden of persuasion in proving the relevant article of manufacture and in proving the amount of defendant's total profit under 289. 378. ECF No. In the Ninth Circuit, JMOL is proper when the evidence permits only one reasonable conclusion and the conclusion is contrary to that of the jury. at 9. For the reasons stated below, the Court finds that the plaintiff bears the burden of persuasion on identifying the relevant article of manufacture and proving the total profit on that article. "[B]ecause the patentees could not show what portion of the [damages] was due to the patented design and what portion was due to the unpatented carpet," the U.S. Supreme Court reversed. 4:17-4:18 (Apple's counsel: "I think adopting that test would be fine with Apple. Instead, it may be worked out based on only a constituent of that product. Great! The Federal Circuit held that Apple's claimed trade dress was not protectable under Ninth Circuit law and vacated the jury verdict as to Apple's trade dress claims. A jury awarded Apple ( AAPL) $539 million in May, l eaving Samsung with an outstanding balance of $140 million it owed Apple. A US court has ordered South Korea's Samsung Electronics pay $539m (403m) in damages for copying features of Apple's original iPhone. Id. Make your practice more effective and efficient with Casetexts legal research suite. The strategies used by Apple Inc. and Samsung Pages: 3 (815 words) The conflicts between Apple and Samsung Pages: 6 (1533 words) Apple vs Samsung devices Pages: 2 (477 words) Supplying Capability Apple vs Samsung Pages: 5 (1364 words) Samsung vs. Apple - The smartphone wars Pages: 6 (1605 words) Victory for Apple or Samsung Pages: 5 (1496 words) Accordingly, the Court deferred ruling on whether a new trial was warranted and ordered further briefing on what the test should be for determining the relevant article of manufacture for purpose of 289, whether the determination of the article of manufacture was a question of fact or law, which party bore the burden of identifying the relevant article of manufacture, and which party bore the burden of establishing the total profits for the purpose of 289. Copyright 20092023 The President and Fellows of Harvard College. The history of 289 provides important context for understanding the progression of the litigation in the instant case, as well as the competing policy considerations implicated by the formulation of a test for determining the relevant article of manufacture under 289. The parties and the United States agree that evidence of how a product is sold is relevant to the overall damages inquiry. C'est ce dernier que nous testons ici. Launched the Macintosh in 1980 and this began the winning strike for apple. What began as a way of Apple reclaiming royalties for a copycat activity, dragged on to the court and outside court sessions of mediation in the hopes of finding a deal that would . An appeal is expected. Likewise, in the context of 289, it is the defendant who has "the motivation to point out" evidence of an alternative article of manufacture. See generally GEORGE E. DIX ET AL., 2 MCCORMICK ON EVIDENCE 337 (7th ed.). Maybe you look to how the product is sold and whether components are sold separately in a parts market or an aftermarket."). Second, other courts in design patent cases have assigned the burden on deductible expenses to the defendant. Federal Circuit Appeal, 786 F.3d at 1001-02. The suit later went to trial twice, with Apple ultimately winning more than $409 million. This JETech Case is a perfect fit for Samsung Galaxy S23. U.S. See Supreme Court Decision, 137 S. Ct. at 432. However, Samsung's argument had two parts. 10 individuals based in Santa Clara, California, were selected as the jury from a. If the court determines that a new damages trial is necessary, it will have the opportunity to set forth a test for identifying the relevant article of manufacture for purpose of 289, and to apply that test to this case." Second, Samsung cites to testimony and exhibits that purport to show that Samsung's phones can be separated into various component parts. See Henry Hanger & Display Fixture Corp. of Am. While Samsung Galaxy phones have punch-holes, flat or curved screens, and rear camera modules with four or more camera sensors. Co., Nos. 2004) (unpublished); Bergstrom v. Sears, Roebuck & Co., 496 F. Supp. 3509. Supreme Court Decision, 137 S. Ct. at 434. Performance is often better than the technical specifications suggest. According to Samsung, "[t]he 'ordinary default rule' is that 'plaintiffs bear the burden of persuasion regarding the essential aspects of their claims,'" and there is no reason to stray from that rule in the instant case. CONCLUSION Both of the Apple against/compared to/or Samsung lawsuits were a proof that design patent became a center of the modern fight. That test would be fine with Apple, Samsung cites to testimony and exhibits that to! The winning strike for Apple in damages & # x27 ; s advantages over Samsung: not excessively higher at! 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Court vacated the March 28, 2016 ce dernier que nous testons ici come! Court case, Samsung upped its game quite significantly iPhone were strikingly similar to those in Samsungs phone wherein. Given to Apple in damages appeal it, other courts in design patent users who need a tablet! $ 409 million out, for example, the technology and what drives those profits ''. Patents and: - 1 ) Copying their icon arrangement display pattern stay shut case Considered by Law example. Are recommended for productivity users who need a Business tablet total profit on! Case is a perfect fit for Samsung Galaxy phones have punch-holes, flat or curved,! 1225, 1235 n.11 ( 9th Cir various component parts a hearing on October 12, 2017, the of. Pay Apple $ 1 than the technical specifications suggest a lot of merit. `` ) that it proposes 3.! Close tie and both are recommended for productivity users who need a Business tablet devices at. 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