Apple requests another $179 million in supplemental damages from Samsung

Posted:
in iPhone edited December 2015
Three weeks after finally receiving $548,176,477 from Samsung over the South Korean company's infringement of Apple's design and technology patents dating back to a 2012 jury verdict, the iPhone maker has filed for another $178,659,870 in supplemental damages and $1,192,490 in interest payments.




The supplemental damages and interest come on top of the the original $548 million Samsung finally agreed to pay earlier this month.

The supplemental damages, compiled on Apple's behalf by CPA Julie Davis, relate to continued infringement by Samsung after the original jury verdict of willful infringement was first issued in August 2012, continuing through this spring, when Apple filed its motion for supplemental damages.

The figure is based on unit sales figures provided by Samsung of five infringing models (quite old Galaxy S II variants) that Samsung continued to sell after the verdict was reached over three years ago.

If Apple is awarded the full amount, it will bring Samsung's total payout for infringement to less than $750 million, far less than the profits it made over the past four years by studying Apple's designs and then documenting its process of "slavishly copying" them as closely as possible, despite being fully aware that those designs and technologies were ostensibly protected by patent law.

While failing to win its initial demands in a series of cases brought to U.S. courts, Apple has effectively crushed Samsung's infringement-based profiteering in the market place, delivering a series of high end products that customers have selected in preference to Samsung's, even when the latter offered major price discounts and free offers. While failing to win its initial demands in a series of cases brought to U.S. courts, Apple has effectively crushed Samsung's infringement-based profiteering in the market place

While Samsung has seen its phone and tablet profits implode over the past year, Apple reported September quarter profits of $11.1 billion, twice that of Samsung Mobile at peak-Galaxy and five times what it is now earning.

Over the last year, Apple's sales of iPhone 6 models have crushed every other flagship Android or Windows phone, allowing the company to gobble up 94 percent of all profits earned in the smartphone industry, despite having equal (or inferior) access to markets, carriers and distribution.

Samsung is now producing record numbers of low end phones, and is set to be among those most impacted by future predictions of slowing global demand for smartphones. Additionally, Apple has also cultivated a highly profitable iPad business and launched a new Apple Watch that has in its first year become far more successful than all of Samsung's various Gear watches sold over the past three years.

While Samsung and Apple remain each other's largest partners, with Samsung supplying vast numbers of components and providing large scale chip production for Apple, the company is expected to lose Apple's A10 chip production next year to TSMC. Apple is also appears to be continuing to explore alternative suppliers and vertical integration in ways that will devastate the steady business Samsung has relied upon for many years.


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Comments

  • Reply 1 of 35
    badmonkbadmonk Posts: 1,072member
    DED, Thanks for this update & keeping the Christmas candle fire burning (on Samsung's ass).
    lostkiwilatifbpredgeminipaapplepieguy
  • Reply 2 of 35
    lkrupplkrupp Posts: 9,989member
    The pictures contained in this article say it all. End of story.
    justadcomicslostkiwilatifbpnostrathomasapplepieguyjbdragon
  • Reply 3 of 35
    This is a great way to add some insult to injury. An even greater insult is that Apple destroyed Samsung on the open market- while Sammy's smartphone profits were but a fleeting dream, customers keep going back to Apple again and again, paying $500-$800 each time. Hardly anyone these days will pay even $400 for a Samsung phone.
    lostkiwiapplepieguyjbdragon
  • Reply 4 of 35
    FYI, there is some editing that needs to be done to this paragraph:

    While failing to win its initial demands in a series of cases brought to U.S. courts, Apple has effectively crushed Samsung's infringement-based profiteering in the market place, delivering a series of high end products that customers have selected in preference to Samsung's, even when the latter offered major price discounts and free offers. While failing to win its initial demands in a series of cases brought to U.S. courts, Apple has effectively crushed Samsung's infringement-based profiteering in the market place 
    Merry Christmas, Spam! Did you just finally notice DED's signature writing style: "Never delete a phrase that works, even if you find two or three more ways to say it."

    With that, I want to send out PC Holiday Wishes to the AI staff and especially DED, stay the course!!

    I'm looking forward to seeing what Apple drops on the market on 2016 that no one is/was expecting. Along with Sog, I'm looking forward to Apple stock hitting 150 and even soaring past... This coming year Apple's alliance with IBM will hit its stride while Microsoft will suffer another management crisis and revert back to Uncle Fester's vision of losing market share to Apple and "anything but Windows" OS's. 2016, the year Apple wins the hearts and minds of the world market so powerfully that the TIME magazine "Man of the year" will feature Jon Ive, and the "deal of the year" will be Apple buying Samsung's chip division after starving it's production of all Apple's business. At the close of 2016 Apple's string of victories that both Sog and the WSJ, along with financial pundits will all be singing the praises of Apple's management and Apple's future...
    hypoluxa
  • Reply 5 of 35
    calicali Posts: 3,494member
    That's all?
  • Reply 6 of 35
    cpsrocpsro Posts: 2,982member
    and a Happy New Year!  :D
    cornchip
  • Reply 7 of 35
    radarthekatradarthekat Posts: 3,488moderator
    $1174.19 of that $728 million belongs to me.  You can be sure I won't be spending it on a Samsung product.
  • Reply 8 of 35
    netroxnetrox Posts: 1,159member
    Merry Christmas, Samsung! 
  • Reply 9 of 35
    Happy Holidays to everyone here!
    airmanchairman
  • Reply 10 of 35
    (Merry Infringe-miss Samsung)...
    jony0
  • Reply 11 of 35
    IMPORT BAN.
    caliapplepieguycornchip
  • Reply 12 of 35
    fallenjtfallenjt Posts: 4,044member
    FYI, there is some editing that needs to be done to this paragraph:

    While failing to win its initial demands in a series of cases brought to U.S. courts, Apple has effectively crushed Samsung's infringement-based profiteering in the market place, delivering a series of high end products that customers have selected in preference to Samsung's, even when the latter offered major price discounts and free offers. While failing to win its initial demands in a series of cases brought to U.S. courts, Apple has effectively crushed Samsung's infringement-based profiteering in the market place 
    Merry Christmas, Spam! Did you just finally notice DED's signature writing style: "Never delete a phrase that works, even if you find two or three more ways to say it."

    With that, I want to send out PC Holiday Wishes to the AI staff and especially DED, stay the course!!

    I'm looking forward to seeing what Apple drops on the market on 2016 that no one is/was expecting. Along with Sog, I'm looking forward to Apple stock hitting 150 and even soaring past... This coming year Apple's alliance with IBM will hit its stride while Microsoft will suffer another management crisis and revert back to Uncle Fester's vision of losing market share to Apple and "anything but Windows" OS's. 2016, the year Apple wins the hearts and minds of the world market so powerfully that the TIME magazine "Man of the year" will feature Jon Ive, and the "deal of the year" will be Apple buying Samsung's chip division after starving it's production of all Apple's business. At the close of 2016 Apple's string of victories that both Sog and the WSJ, along with financial pundits will all be singing the praises of Apple's management and Apple's future...
    And Apple announce to go private!
  • Reply 13 of 35
    fallenjtfallenjt Posts: 4,044member

    $1174.19 of that $728 million belongs to me.  You can be sure I won't be spending it on a Samsung product.
    I actually spent $220 on 2 Samsung Smartcams from Costco for this Christmas because my Blink cameras are not arriving on time. I need eyes in my house for the holiday season when I'm away. Will return the damn things and keep my promise: ain't spend a penny on Samsung products.
    cali
  • Reply 14 of 35
    wood1208wood1208 Posts: 2,694member
    Get it Man. Stealers must Pay.
  • Reply 15 of 35
    calicali Posts: 3,494member
    What should Apple do with the money?

    They should either donate a bunch of iPads to South Korean schools or create new Apple jobs in that country.
  • Reply 16 of 35
    FYI, there is some editing that needs to be done to this paragraph:

    While failing to win its initial demands in a series of cases brought to U.S. courts, Apple has effectively crushed Samsung's infringement-based profiteering in the market place, delivering a series of high end products that customers have selected in preference to Samsung's, even when the latter offered major price discounts and free offers. While failing to win its initial demands in a series of cases brought to U.S. courts, Apple has effectively crushed Samsung's infringement-based profiteering in the market place 
    Merry Christmas, Spam! Did you just finally notice DED's signature writing style: "Never delete a phrase that works, even if you find two or three more ways to say it."

    With that, I want to send out PC Holiday Wishes to the AI staff and especially DED, stay the course!!

    I'm looking forward to seeing what Apple drops on the market on 2016 that no one is/was expecting. Along with Sog, I'm looking forward to Apple stock hitting 150 and even soaring past... This coming year Apple's alliance with IBM will hit its stride while Microsoft will suffer another management crisis and revert back to Uncle Fester's vision of losing market share to Apple and "anything but Windows" OS's. 2016, the year Apple wins the hearts and minds of the world market so powerfully that the TIME magazine "Man of the year" will feature Jon Ive, and the "deal of the year" will be Apple buying Samsung's chip division after starving it's production of all Apple's business. At the close of 2016 Apple's string of victories that both Sog and the WSJ, along with financial pundits will all be singing the praises of Apple's management and Apple's future...
    Merry Christmas to you too.

    However, you won't be toasting $150 AAPL this year with Sog since he openly promised his one year self-ban since the stock did not achieve his promised level. 

    Also, with regard to this story, presumably Apple includes recovering their massive attorney's fees as part of this additional claim against Samsung. Apple deserves every cent back (I'd even argue for treble damages!) for the troubles caused by Samsung.
    edited December 2015
  • Reply 17 of 35
    sdw2001sdw2001 Posts: 17,847member
    I'm still annoyed they didn't get the original $2B award.  Moreover, this really shows how hopelessly broken our patent system is.  Three years and millions in legal fees, all for what's basically a Pyrrhic victory.  In a case with such wanton and willful infringement, Samsung should have been on the hook for at least 5 times those damages and faced a multi year import ban.  My brother is a former patent examiner and now an IP attorney, so that makes my position somewhat ironic.  
    SpamSandwichapplepieguy
  • Reply 18 of 35
    sdw2001 said:
    I'm still annoyed they didn't get the original $2B award.  Moreover, this really shows how hopelessly broken our patent system is.  Three years and millions in legal fees, all for what's basically a Pyrrhic victory.  In a case with such wanton and willful infringement, Samsung should have been on the hook for at least 5 times those damages and faced a multi year import ban.  My brother is a former patent examiner and now an IP attorney, so that makes my position somewhat ironic.  
    I think the real problem is Apple failed to file their legal complaint in East Texas. This thing would've been a slam dunk instead of the dumpster fire created by Judge Koh.
  • Reply 19 of 35
    sphericspheric Posts: 2,168member
    sdw2001 said:
    I'm still annoyed they didn't get the original $2B award.  Moreover, this really shows how hopelessly broken our patent system is.  Three years and millions in legal fees, all for what's basically a Pyrrhic victory.  In a case with such wanton and willful infringement, Samsung should have been on the hook for at least 5 times those damages and faced a multi year import ban.  My brother is a former patent examiner and now an IP attorney, so that makes my position somewhat ironic.  
    I think the real problem is Apple failed to file their legal complaint in East Texas. This thing would've been a slam dunk instead of the dumpster fire created by Judge Koh.
    That town in East Texas is owned by Samsung (they sponsor an outdoor ice-skating rink fer chrissakes! IN TEXAS!).
  • Reply 20 of 35
    I am curious. Let us say that Samsung hadn't infringed on Apple's IP. How much would it have changed, really? Does anyone believe that Apple would have ever enjoyed 90%, 80%, 70% or even 60% market share? Especially overseas where carriers do not subsidize devices? And even in America and Europe where a certain percentage of the population either just doesn't like Apple or simply likes to be contrarian? Apple was never going to dominate the smartphone and tablet market the way that they dominated the music player market. And in the music player market, no one was capable of coming up with a true competitor to either the hardware or to iTunes, plus Apple addressed the low end market with the iPod Shuffle for music players. 

    So there was always going to be a viable second OS, especially addressing the overseas and low end markets. And Blackberry, Symbian, WebOS, Firefox OS, Ubuntu, Tizen (which was acquired by Samsung, not developed by them), Microsoft etc. all had their shots and failed. The reasons: lack of technical expertise in mobile Internet technology, lack of apps and ecosystem, lack of name branding/marketing, not enough financial backing. Only Google, it seems, had the combination of technical acumen, app store with a lot of third party developers, a globally known name brand and deep pockets and that was why they succeeded while others didn't.

    And don't overplay Samsung's role. After all, Samsung made and marketed Windows phones too (as well as Bada and then acquiring Tizen). Not just Samsung: LG and HTC made Windows Phones also, and the HTC One Windows 8 device was aesthetically beautiful. Oh yes, and then there was Nokia, the company that ruled the mobile phone space pre-iPhone who failed with first their own Symbian smart device OS and then after investing heavily in marketing and R&D for Windows Mobile.

    So, Samsung's success was more about Android than Samsung (the many good features that originated in Samsung's despised TouchWiz and were later put in Google Android notwithstanding), meaning that it had more to do with Google than with Samsung's copying Apple. To put it another way: it was mostly due to Samsung covering bases before Apple could get there such as being able to sell to all carriers while Apple was an AT&T exclusive and then offering larger phones and smaller tablets while Apple delayed in delivering both. And it was also due to their rising to the top of the Android heap by spending way more on advertising and on carrier and store agreements than HTC and Motorola who could simply not afford it and also LG and Sony who CAN afford it but for some strange reason chooses to just sit back and allow first Samsung and now Huawei and Xiaomi to eat their lunches. 

    I suppose that getting $180 million because Samsung has continued to sell the ancient Galaxy 2 (with its 4.3 inch screen and 2.3 - though upgradeable to 4.1! - operating system) is nice. But the truth is that Samsung is becoming less relevant anyway. They are now #3 in China behind Xiaomi and Huawei. Huawei has now joined Apple and Samsung in selling 100 smartphones annually - and they reached that mark long before Christmas so they may end the year at 115 million - and in the process has leapfrogged Xiaomi, and will start selling smartphones in the US by March of 2016 along with another Chinese company LeTV. While Huawei, LeTV and Huawei will likely not take many smartphone sales away from Samsung in the US due to lack of carrier agreements, they will in India and Africa, where the 3 Chinese companies will not only sell devices but are also building out the Internet and mobile infrastructure, so that in those regions they will not only sell phones and tablets, but also the Internet and mobile data plans that the tablets use as they do in China. And when you consider that Huawei is already selling a decent number of phones in Europe, it can be said that Apple is continuing to dither about with Samsung while the market - the global market anyway ... the U.S. market is set with about half being Apple fans and the other half Samsung loyalists - is changing.
    cropr
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