Saturday, August 25, 2012

U.S. Court Awards Apple Inc. (AAPL) Over a Billion dollars in Damages from Samsung

A federal court in San Jose, California found Samsung Electronics Co guilty of infringing six of seven Apple Inc.(NASDAQ:AAPL) patents in a jury verdict that renders the Korean company liable to pay damages of more than $1.05 billion to Apple.

The trial, which went to the jury for a verdict after three weeks of legal wrangling and accusations between the two parties, has important ramifications for the two companies.

The jury upheld all of Apple's patents that were disputed, as valid. Judge Lucy Koh, who has been presiding over the trial, will herself deliver the verdict on whether a ban should be imposed on Samsung's Galaxy devices in the United States.

Apple, which sued Samsung in April 2011 for infringement of patents, has also sought $2.5 billion in damages from the Korean company.

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The jury started to deliver its verdict on Friday after hearing about 25 hours of evidence and testimony from both the companies. The jury panel was given more than two hours of instructions and a 20-page verdict form.

The jury also rejected Samsung's claims of patent violations against Apple and request of damages worth more than $million. Crucially Apple also won its claims that Samsung had violated patents on the designs of its iPhone and iPads.

“Today’s verdict should not be viewed as a win for Apple, but as a loss for the American consumer,” Samsung said in an e- mailed statement. “It is unfortunate that patent law can be manipulated to give one company a monopoly over rectangles with rounded corners, or technology that is being improved every day by Samsung and other companies.”

Samsung also said the verdict wasn’t the “final word” in the case or in courts and tribunals around the world.

On Thursday a court in Seoul, South Korea found that both the companies had infringed on patents and imposed a partial ban on the sales of their products in the country.

The Seoul court however denied Apple's contention that Samsung had copied the designs of its iPhones and iPads.

For Apple, the San Jose verdict is a certain victory in a patent battle with Samsung, with the two companies waging battles in a dozen courts across four continents. At stake is the over $200 billion smartphone market where Samsung has gained dominance.

Shares of AAPL jumped over 1% in after hours on Friday.

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