Apple to Samsung: Pay Us $2.525 Billion in Damages
Apple (NASDAQ: AAPL) figures that $2.525 billion in damages is just about right to settle its high-stakes intellectual property (IP) battle with Samsung Electronics over patented technology used in the iPhone and iPad, according to published reports.
Apple, in a partially edited, public filing with a federal court in San Jose, Calif., prior to the upcoming July 30, 2012, trial, claimed that Samsung “chose to compete by copying Apple,” asserting the Korean manufacturer’s “infringing sales have enabled Samsung to overtake Apple as the largest manufacturer of smartphones in the world.” Apple said that as a result of Samsung’s patent violations, it lost some $500 million in profit and it “conservatively estimates” reasonable royalty damages at more than $25 million.
That leaves the big number, the damages that Apple pegs Samsung gained from the IP infringement, which, of course, was blacked out in the public version of the company’s federal court filing. However, Florian Mueller, an intellectual property analyst writing at the Foss Patents website, calculated the damages at $2 billion by using per-unit royalties and other measures.
“The $2.525 billion amount could still increase,” wrote Mueller. “Apple argues that Samsung infringed willfully. As a result, some components of that overall figure could be tripled.”
Apple also said it will seek a permanent injunction to stop future violations, a move Mueller suggested potentially holds cascading importance. Apple’s damages claim relates to past infringement and, should the court grant Apple’s request for a permanent injunction, infringement would end at that point. However, if the court finds other infringements but declines to grant Apple’s injunction request to stop them, the court would have to award Apple royalties going forward, Mueller noted.
So far, both Apple and Samsung have won some of the early battles. In early July, Apple was awarded a preliminary injunction blocking sales of the Galaxy Nexus, and Apple recently was ordered by a U.K. court to advertise that Samsung did not copy Apple’s iPad.
Apple CEO Tim Cook and high-level Samsung executives reportedly tried unsuccessfully to mediate the dispute last week so right now this battle royale appears headed to a jury trial.