Apple’s $1 Billion Patent Award Cut to $600 Million

apple logoSamsung Electronics Co. got a big break from U.S. District Judge Lucy Koh, who cut Apple’s $1.05 billion smart phone patent-infringement award by roughly $450 million last week. Koh approved damage award of close to $600 million. Koh found that the jury made various errors in the damage portion of the verdict. Both sides can appeal the decision.

Apple had accused Samsung, which had supplied a quarter of the iPhone’s parts, of using its knowledge of Apple’s designs to create its own smart phone line known as Galaxy.

Apple won a jury verdict that found the Korean company had infringed the Apple smart phone patents for iPhone and iPad.

The two companies combined control half the smart phone market.

Koh found the jury incorrectly calculated the damages and that a new trial may be necessary to determine the final dollar amount.

In the same order Koh also rejected Apple’s request to increase the damage award made by the jury.

Instead, Koh agreed with Samsung that some of the damage award rested on impermissible legal theories. Although jurors they were not allowed to apply damages to a theory presented by one of the experts, but it was clear “the jury had applied the impermissible theory anyway,” Koh said.

She found 40 percent of Apple’s award was based on that calculation. So she axed it.

With the cut imposed by the judge, the prevailing party meaning Samsung, has the option to demand a new trial on damages or accept the reduced award.

Koh set the final damage award on 14 Samsung products at $599 million.  No word yet to the court from Samsung on their next step.

Case: Apple Inc. v. Samsung Electronics, No.  11-1846LHK


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