Samsung Electronics to Pay Apple $290 Million in Patent Dispute

Samsung Electronics Co., Ltd (KRX:005935) was ordered by a jury to pay Apple Inc (NASDAQ:AAPL) $290.45 million in damages related to the patent infringement case involving the patent technology integrated in the iPhone and iPad devices.

The figure was lower than the $380 million demanded by Apple Inc (NASDAQ:AAPL)  as payment for the damages caused by Samsung  Electronics Co., Ltd (KRX:005935) for infringing its “pinch to zoom” technology that was used in thirteen devices. On the other hand, the $290 million awarded to Apple by the jury is higher than the $52 million Samsung was willing to pay.

The jury originally awarded Apple Inc (NASDAQ:AAPL) $1.05 billion in damages after ruling that Samsung Electronics Co., Ltd (KRX:005935) violated some of the patents of the iPhone and iPad. However, United States District Judge Lucy Koh ordered a retrial on the damages award because the jury made a mistake in calculating more than $400 million on the claim.

During the retrial last week, Apple’s marketing executive Phil Schiller testified that Samsung Electronics Co., Ltd (KRX:005935) damaged the brand and reputation of the iPhone and iPad maker for copying some of the features of the devices. According to him, he was “shocked” when he saw that Samsung copied the iPhone.  He pointed out that the availability of a similar-looking device led consumers to doubt the design skills and innovation of Apple Inc (NASDAQ:AAPL).

He pointed out that Samsung copied “many attributes of Apple’s products; its designs and features … the very essence of what Apple is about.”  He added, “If we don’t have that, we don’t have Apple’s business.”

On the other hand, Atty. William Price, the legal counsel representing Samsung Electronics Co., Ltd (KRX:005935) challenged the innovation of Apple Inc (NASDAQ:AAPL) by asking Schiller if the Cupertino based tech giant owned a patent on product being beautiful and sexy. Schiller replied that the technology industry tend to follow the trends of successful products.

Price also demonstrated during the retrial that Apple followed Samsung’s strategy by developing the iPad Mini after the South Korean electronics manufacturer’s 7-inch Samsung Galaxy Tab was proven successful.

Samsung and Apple are engaged patent disputes in different courts around the world. Early this year, the court scheduled a trial regarding Apple’s claim that the latest devices of Samsung violated the patents of its iPhone and iPad. Legal experts following the patent dispute between the two smartphone and tablet manufactures opined that Apple’s lawsuits against Samsung serve as proxy war against the Android operating system of Google Inc (NASDAQ:GOOG).