Monday, September 24, 2012

Apple Asks for More Damages, Sales Ban; Samsung, New Trial


Here comes the hammer. The Apple hammer, that is, as attorneys representing the company filed a motion late Friday requesting a U.S. sales ban against Samsung devices and an additional $707 million in damages as a result of last month's ruling against Samsung in the two companies' patent showdown.

The sales ban would effectively make Samsung a non-competitor to Apple in the United States, as Apple is requesting that it cover 26 smartphones and three tablets, in addition to, "any other product with a feature or features not more than colorably different from any of the infringing feature or features in any of the Infringing Products."

The request likely puts Samsung's recently released flagship smartphone, the Galaxy S III, squarely in Apple's sights. Apple doesn't name the device directly, but it does bring up the concept of brand loyalty ? especially among first-time smartphone buyers ? as a reason for the sales injunction and increased damages.

"This Court has recognized that this is a critical transition period for the mobile phone market, because a large number of potential customers are abandoning feature phones for smartphones," reads Apple's motion. "These first-time smartphone purchasers are likely to develop brand and platform loyalty that will affect future sales and market share for years to come, which makes the harm to Apple from loss of follow-on and downstream sales particularly severe."

The Galaxy S III hit 20 million in total sales over the first three months of its existence, besting Apple's iPhone 4S as the best-selling smartphone in the U.S. for the month of August. Worse, for Apple, that's the first time that the iPhone 4S has been bumped off the top of the charts since the smartphone's debut in October of 2011.

In other words, Apple has every reason to fear Samsung's growing influence in U.S. markets.

As for the cash, Apple's $707 million figure splits out as follows: $400 million as a damage award for Samsung's infringements (Lanham Act), $135 million for Samsung's willful infringements of its utility patents (Patent Act), $121 million for supplemental damages for Samsung sales since July 1 (as the jury only considered sales up to June 30 when evaluating damages), and $50 million for interest until Samsung pays the final total.

Samsung, in response, is asking the court for a new trial and a reduction in damages.

"The Court's constraints on trial time, witnesses and exhibits were unprecedented for a patent case of this complexity and magnitude, and prevented Samsung from presenting a full and fair case in response to Apple's many claims," reads Samsung's motion.

?

For more tech tidbits from David Murphy, follow him on Facebook or Twitter (@thedavidmurphy).

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Source: http://feeds.ziffdavis.com/~r/ziffdavis/pcmag/breakingnews/~3/_MiqGBV1rgw/0,2817,2410065,00.asp

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