Posts Tagged: "Apple v. Samsung"

First, remember that Steve Jobs once referred to the smartphone patent wars as the patent equivalent of global thermonuclear war. But will this be more like the Cold War or the Apocalypse? The only patent war that I can recall that actually approximated a patent version of the Apocalypse was the battle between Polaroid and Kodak. That saw a $909 million verdict in 1990, and ultimately settled for $925 million about a year later, but required total aggregate attorneys fees in the neighborhood of $550 million. The war lasted 15 years and didn’t achieve the $2.5 to $5 billion that once upon a time was believed possible. This was also at a time when these numbers were real money.

The functionality issue, as it relates to design patent claim scope, mysteriously vanished from the district court’s application of design patent law between the December 2011 issuance of the Order denying preliminary injunction and the August 2012 issuance of the Final Jury Instructions. By failing to expressly identify non-ornamental (functional) features of Apple’s design patents and instruct the jury that such features were not to be considered in its infringement analysis, the district court materially, and perhaps fatally, prejudiced Samsung’s non-infringement defenses. The district court unleashed a “free range jury” that was unconstrained in its ability to forage for patentable subject matter that could be used to evaluate infringement among the functional features disclosed in Apple’s design patents.

The relative paucity of design patent jurisprudence regarding the legal remedy of damages and the equitable remedy of an accounting for the infringer’s profits, makes clear that while an award of damages for patent infringement may be enhanced under 35 U.S.C. § 284 for willful infringement, and award of profits under 35 U.S.C. § 289, may not be enhanced under Section 284. While this distinction may appear important to one who wishes to obtain an enhancement of the damages award for willful infringement, the jury verdict form in Apple v. Samsung leaves one clueless as to whether the monetary award for infringement of 18 Samsung devices was an award of damages, an award of profits, or some combination of the two.

News analysis and op-ed pieces following the $1 billion jury decision in Apple v. Samsung have been filled with reactive statements critical of the US patent system. Apple’s enforcement of its patents may “literally choke innovation” cried one law professor. A critic of the decision said that cases like this will require competitors to innovators like Apple to be much more mindful of patents and to “try to avoid or secure rights to [patents]” before bringing a product to market. What the critics have not explained is how making it easier for a foreign company like Samsung to steal US-born innovation is in our long-term national interest.