On Thursday, November 21, 2013, a U.S. jury awarded Apple Inc. about $290 million in a damages retrial against Samsung Electronics Co Ltd for violating patents after a week long trial, the jury deliberated for nearly two days before reaching a decision on Thursday in a San Jose, California federal court.
The six-woman, two-man jury calculated the damages based on 13 products that infringed Apple's patents. They determined that two smartphones incurred the heftiest damages: Samsung’s Infuse 4G, at about $100 million, and the Droid Charge, at $60 million.
Apple had requested $379.8 million, while Samsung argued that it should have to pay $52.7 million. Apple and Samsung are two of the most profitable companies in the technology industry, and the ruling did give Apple another victory in the companies' continuing legal fight.
Legal experts said that Samsung was most likely trying to minimize the damages to safeguard itself in future fights. The final award could influence another jury to make similar damage calculations.
Apple and Samsung have been fighting in the courts for over two years. Apple was awarded over $1 billion last year after it convinced a jury that Samsung copied several iPhone features, along with black flat glass touch screen design.
Earlier in 2013, U.S. District Judge Lucy Koh upheld nearly $640 million of that verdict but ordered a retrial on the rest, ruling that the previous jury had made some errors in its calculations. Combined with the retrial verdict of $290.5 million, Apple has now been awarded $929.8 million in the case.
Phil Schiller, Apple's Marketing Chief, to testify during the trial. Samsung did not call any of its senior executives, a fact hammered on by Apple attorneys during closing argument. Juror Barry Goldman-Hall, a therapist.
"We felt like we had way more information from Apple and we were left wondering why we hadn't gotten other information from Samsung," said Hall.
Lauren Restuccia, a Samsung spokeswoman, said, "We are disappointed by today’s decision." She added, "While we move forward with our post-trial motions and appeals, we will continue to innovate with groundbreaking technologies and great products that are loved by our many customers all around the world."
Apple spokeswoman Kristin Huguet said it was grateful to the jury for imposing costs on Samsung, though she said the case has been more about protecting innovation than winning money.
Samsung manufactures phones that use the Android operating system, which is developed by Google. In addition to the fight over money, Apple is seeking a permanent injunction against several older Samsung phones. Koh had previously rejected such a sales ban, but earlier this week the U.S. Court of Appeals for the Federal Circuit ordered her to reconsider.
Nick Rodelli, a lawyer and adviser to institutional investors for CFRA Research in Maryland, said injunctions are much more important in these legal battles than monetary awards. Still, he said, the verdict shows that Apple's narrative was persuasive to a second jury drawn from Silicon Valley.
"A jury award on the high end of the range is a modestly positive signal for Apple," Rodelli said.
Colleen Allen, the jury forewoman, said Apple did not enjoy a home field advantage from having the trial so close to the iPhone maker's headquarters in Cupertino. Both companies are global players, she said, and while Apple engineers may be based in Northern California, its products are manufactured overseas.
Apple said in a statement that the case "has been about innovation and the hard work that goes into inventing products that people love." It added, "While it’s impossible to put a price tag on those values, we are grateful to the jury for showing Samsung that copying has a cost."
Apple and Samsung continue to fight in courts around the world. In the U.S., the moment has shifted in Apple's favor. Both companies persuaded the U.S. International Trade Commission that the other had violated patents, resulting in bans on others' products.
The case in U.S. District Court, Northern District of California is Apple Inc. vs. Samsung Electronics Co Ltd, 11-1846.