Supreme Court to hear Apple v. Samsung appeal on Oct. 11
The U.S. Supreme Court released a schedule of its upcoming October term sessions on Wednesday, announcing it will hear Samsung's appeal of a contentious patent lawsuit involving Apple on Oct. 11.
America's highest court said in March that it would offer an opinion on Apple's court win over Samsung, but had not blocked off an official hearing date until today.
The Supreme Court will discuss whether penalties assessed in a California federal court case over infringement of iPhone design patents, for which Samsung paid out $548 million in December, were excessive. In its petition to the court last year, Samsung asserted damages in patent cases pertaining to complex devices like smartphones should be based on patented components, not total profits from device sales.
In particular, the court has been petitioned to hear two questions. The first relates to design patent scope, while another asks whether patent trial damages should be assessed based on profits attributable to an infringing component or as a measure of total profits.
Apple maintains its case against Samsung is "legally unexceptional" and is therefore undeserving of review by the Supreme Court.
Depending on the outcome and ensuing Supreme Court opinion, Samsung expects to be reimbursed for its $548 million payment, a contingency afforded by terms included in the initial payout last year.
America's highest court said in March that it would offer an opinion on Apple's court win over Samsung, but had not blocked off an official hearing date until today.
The Supreme Court will discuss whether penalties assessed in a California federal court case over infringement of iPhone design patents, for which Samsung paid out $548 million in December, were excessive. In its petition to the court last year, Samsung asserted damages in patent cases pertaining to complex devices like smartphones should be based on patented components, not total profits from device sales.
In particular, the court has been petitioned to hear two questions. The first relates to design patent scope, while another asks whether patent trial damages should be assessed based on profits attributable to an infringing component or as a measure of total profits.
Apple maintains its case against Samsung is "legally unexceptional" and is therefore undeserving of review by the Supreme Court.
Depending on the outcome and ensuing Supreme Court opinion, Samsung expects to be reimbursed for its $548 million payment, a contingency afforded by terms included in the initial payout last year.
Comments
We have already seen Apple change their iPhone strategy by becoming less reliant on simple patent protected ideas and instead to difficult and expensive to reproduce hardware and service offerings. (E.g. Apple Music, Apple Pay, 3D touch, finger print sensor etc.)
While you've written a great informative post it's not the point of contention. Instead it's how damages should be awarded for design patent infringement. No one argued against design patents in general. But whereas utility patent damages are computed based on the specifics of the usage and importance in any particular scenario, infringe a design patent and the IP holder is entitled to 100% of the entire profits derived from selling that infringing product, no matter how minimal the use ie a single app icon. Worse the same or another IP owner could take a second bite of the entire profits with more design patent claims and on and on and on.
Such is the current state of design patent law as it's been determined by the US Court of Appeals. I'd love to know your opinion on this. If you believe it's correctly and properly applied what rationale you are using to argue that design patents should generally be more valuable that utility patents and automatically worthy of a product's entire profits for even the most minimal violation? There is no other damage award available at the moment, only 100%. Seems nonsensical but perhaps you can offer a logical argument for it.
http://www.insidecounsel.com/2015/04/10/the-3-types-of-trademark-damages-claims-an-economi
The Court likely will have a narrow ruling, given that they are down a jurist. I doubt their will be a definitive ruling on assessed damages for design patents.
As a engineer, most products are composed of components ordered from catalogs and assembled into finished products. Apple does this, at a high level of integration with it's software, and with many custom components, and with the advantage of an established Industrial Design team in house for the exterior design.
To the consumer at the time of the first iPhone, the iPhone was a magical black box with an industry leading design. To the industry, the iPhone was a massive disruption that Samsung reacted to by copying Apple design elements.
On the design patent infringement damages Apple is currently awarded 100% of the US profits from sales of those infringing devices. According to current interpretation of the law there is no other choice, it cannot be anything other than 100%. This is a percentage neither the jury nor the judge can change as there is no such thing as apportionment on design patent infringement damages if the Appeals Court ruling stands.
I would be shocked if even Apple wishes for this to be the law of the land, as there is almost certainly a patent troll with one or more design patents in hand salivating for the chance to possibly bankrupt Apple and seize their 10's of billions in US profits with the right winning lawsuit. Note that foreign-derived profits would be safe from seizure which is another good reason for most profits to remain safely stashed "overseas"...
in New York banks.
In any event then you sound as tho you believe it's the proper damages basis, 100% of the profits no matter how infinitesimal the IP is in the overall product, and contrary to apportioned damages as applied to utility patents (and trademarks). Am I reading your opinion correctly?
Design patent infringement is a potential doomsday scenario as it now stands, even for a company the size and wealth of Apple.
FWIW I suspect SCOTUS may feel their hands are tied by the law as written and kick this back to the Congress for a necessary fix to bring it in line with other US intellectual property rights.