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View Count: 91 |  Publish Date: November 19, 2013
Apple makes last pitch for why it deserves $380M from Samsung

Outside U.S District Court in San Jose, Calif., the scene of the Apple v. Samsung retrial. (Credit:Josh Lowensohn/CNET) SAN JOSE, Calif. -- Apple on Tuesday made its last pitch to a jury before the eight men and women begin deliberations on what additional damages Samsung owes its rival for patent infringement.
Apple attorney Bill Lee stressed how much time and investment Apple put into making the first iPhone and what a big risk it was for the company to create such a device.
Hundreds of Apple engineers worked in secret to try to bring you something that had never been done before, Lee said They invented, they created, they innovated.
He cited Samsung documents, including a speech by top mobile executive JK Shin, as evidence that the company wanted to copy Apple. In the speech by Shin, the Korean executive said Samsung was experiencing a crisis of design and needed to make something like the iPhone.
Documents, ladies and gentlemen, dont lie, Lee said. Samsung has infringed not one, not two, not three, not four, but five patents.
Lee made the comments during closing statements here at a retrial in the United States District Court for the Northern District of California. A new jury of eight people has been assembled to determine how much more Samsung owes Apple for infringing on five patents related to the iPhones design and functionality.
Related stories:Samsung expert: No one buys Samsung gadgets for Apples touch-screen techApples Schiller: Samsung gained ground thanks to copycat tacticsApples Schiller: iPhone was a bet the company productApple demands $380M in patent trial, but Samsung wants to pay $52MJudge to Apple, Samsung: Give peace one more chance Judge Lucy Koh allowed each side eight hours of testimony over the four-day trial. Samsung rested its case Monday with two minutes left. Apple had 16 minutes left. Samsung will make its closing arguments later Tuesday.
After both companies finish their final remarks, the case will be handed over to a jury of six women and two men, including one juror who doesnt have any cellphones in her home.
The two companies spent their final hours and minutes Monday grilling expert witnesses on how much money Samsung owes Apple for patent infringement. Apple says Samsung owes it $380 million for the infringement. Samsung says it should pay only $52 million.
A judge in March vacated about $450 million of an original award and ordered a new jury to convene to recalculate the damages for patent infringement. Samsung is still on the hook for about $600 million, no matter what happens in the retrial.
A big part of the discrepancy between what Apple wants and what Samsung thinks it should pay comes from differing views on how much Apple lost in profits and how much it should be due for royalties. The two sides also disagree on how much money Samsung made from its copycat products.
The retrial kicked off last Tuesday with jury selection, followed by opening arguments Wednesday. Witnesses who took the stand included Phil Schiller, Apples head of marketing; and several expert witnesses who calculated the total damages owed.
For most, the damages retrial was a case of Groundhog Day. No new revelations emerged during the testimony, and most witnesses also took the stand during the last trial more than a year ago. Apples witnesses argued Samsungs copycat devices hurt the company, while Samsung argued that people seek out its devices more for their differences than similarities to Apple gadgets.
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Not at issue in this case is whether Samsung infringed Apples patents. The judge instructed the jury that a previous jury already decided Samsung infringed, and that they shouldnt revisit that issue. The sole consideration in the retrial is money -- just how much Samsung owes Apple for infringing its patents.
Apple arrived at the $380 million amount based on lost profits of about $114 million, Samsungs profits of about $231 million, and reasonable royalties of approximately $35 million. Apple estimates it would have sold 360,000 devices if Samsung hadnt released infringing rivals.
Samsung, meanwhile, said Apple shouldnt receive any money for lost profits, $52.7 million for Samsungs profits, and royalties of only $28,452 because the patents have limitations.
Apple originally filed suit against Samsung in April 2011, accusing the Korean company of copying the look and feel of its products. Samsung countersued two months later over patent infringement and said it was at work on touch-screen phones with giant rectangular screens and rounded corners well before Apple showed up. The initial trial, which stretched more than three weeks in August 2012, wrapped both of those cases in one, somehow squeezing together the patent infringement issues, alongside antitrust claims, and even trade dress issues.
Apple v. Samsung redux: What you need to know (FAQ)
In August of last year, a nine-person jury sided with Apple on a majority of its patent infringement claims against Samsung. At that time, the jury awarded Apple $1.05 billion in damages, much less than the $2.75 billion sought by the Cupertino, Calif., electronics giant. Samsung, which asked for $421 million in its countersuit, didnt get anything.
However, Koh in March ordered a new trial to recalculate some of the damages in the case, striking $450.5 million off the original judgment against Samsung. What that means is Samsung is still on the hook for about $600 million in damages, but a new jury has to decide how much else it owes.
The products in question include the Galaxy Prevail, Gem, Indulge, Infuse 4G, Galaxy SII AT&T, Captivate, Continuum, Droid Charge, Epic 4G, Exhibit 4G, Galaxy Tab, Nexus S 4G, Replenish, and Transform. The Prevail in particular racked up $57.9 million of the damages tally, which Koh said was a failure on the jurys part, since the device was found to infringe only on utility patents, and not on design patents.
Phil Schiller, Apples head of marketing, argued last week that Samsungs copycat devices made it much harder for Apple to differentiate and sell its devices. He also noted that the reason Samsung gained so much market share in smartphones was because it copied Apple.
At the end of the day, theres a cumulative effect of doing all of this thats incredibly damaging [to Apple], Schiller said Friday.
Lee on Tuesday pointed out to the jury that Apple brought top executives to talk about the creation of the iPhone and the importance to the company. Samsung, however, didnt put any of its top Korean executives on the stand, he said.
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Time: 18:49  |  News Code: 345893  |  Site: CNET
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