In March 2016, the Supreme Court announced that it will take
up a lengthy patent battle between Apple and rival smartphone maker Samsung – a
case that could help determine just how much companies have to pay out if they
rip off patented design elements from other products. This will be the first
design patent case to make it to the Supreme Court in more than 120 years.
In a statement, Samsung it hopes that the justices’ review
“can lead to a fair interpretation of patent law that will support creativity
and reward innovation.” Apple declined to comment.
This case dates back to a 2011 dispute where Apple accused
Samsung of copying some basic design features of the iPhone in competing
devices. A jury sided with Apple in 2012, initially awarding the company more
than $1 billion. The figure was eventually reduced in appeals, but a panel of
judges upheld an award of more than $500 million in damages to Apple last year.
The damages basically amounted to Samsung forfeiting all of its profits from
the devices that allegedly infringed on Apple’s patents based on the court’s
interpretation of the law covering design patents that allows a patent-holder
to go after an infringer’s “total profit.”
Samsung agreed to pay the figure last December, but on the
condition it could get money back in the event of a successful challenge or
appeal. Then Samsung petitioned the Supreme Court to review the case, and the
justices now have to answer the question: Does Samsung have to give up all of
its money it made from devices that infringed on some of Apple’s design
patents, or just money it made from parts of the devices that infringed on the
patents.
In conclusion, this has been a very exciting case to follow
with large implications for technology patents as a whole. It will be
interesting to see how the Supreme Court rules, especially considering that
they only have 8 judges on the bench currently. If there is a tie, the previous
ruling and damage payments will be upheld.
I covered this case as well, I didn't realize the SC decided to take it up, that's awesome! The result should be so interesting...
ReplyDeleteAwesome article Jay, glad to see something about the Supreme Court getting involved in the smartphone patent battles. I agree that this case will have a huge influence on these patent battles and technology patents in general. I wonder if the 8 judges will tie as they have been doing on multiple issues recently.
ReplyDeleteAwesome article Jay, glad to see something about the Supreme Court getting involved in the smartphone patent battles. I agree that this case will have a huge influence on these patent battles and technology patents in general. I wonder if the 8 judges will tie as they have been doing on multiple issues recently.
ReplyDeleteThe fact that this is the first patent design case to make it to the supreme court in 120 years is astonishing and telling about our technology era. Big companies like Samsung and Apple are focused so much on their product design (Apple recently got a patent on their store layout design) and their company style that these cases are going very far and getting a lot of money. Maybe it is just another way to slow the competition, either way, I'm sure the lawyers aren't complaining.
ReplyDeleteHi Jay,
ReplyDeleteI also wrote about Samsung and Apple and it was super insightful to notice that these companies realize the fact that litigation is increasingly becoming a double-edged sword and making deals to drop IP litigation abroad.