Cost: $0 (Free) Limited Seats Available. On August 24, 2012, the first jury reached a verdict that numerous Samsung smartphones infringed and diluted Apple's patents and trade dresses in various combinations and awarded over $1 billion in damages. Moreover, Apple offers no reason why ordinary discovery would not be sufficient to allow a design patent plaintiff to carry its burden of persuasion on identifying the relevant article of manufacture. 2271 at 26; 2316 at 2 (case management order reinstating portion of original jury award). But this is an issue that can be argued to the factfinder in the context of the facts of a given case; it is not a reason to altogether exclude from consideration the scope of the claimed design. Will this mega-lawsuit dramatically alter the way our . It instills confusion in consumers. First, Samsung explained that "Samsung previously cited a number of cases, including [the Piano cases] . The smartphone industry has grown and has become one of the biggest industries in the world. The plaintiff also shall bear an initial burden of production on identifying the relevant article of manufacture and proving the amount of total profit on the sale of that article. 2005) (quoting Advanced Display Sys., Inc. v. Kent State Univ., 212 F.3d 1272, 1281 (Fed. In Samsung's reply brief in support of its motion for judgment as a matter of law, Samsung argued that Apple "fail[ed] to offer any evidence that [the profits awarded in the instant case] are the profits from the 'article of manufacture' at issue, which is the phones' outer casings or GUI." The Federal Circuit affirmed the damages award, rejecting Samsung's argument that damages should be limited because the relevant articles of manufacture were the front face or screen rather than the entire smartphone. It's claiming the bezel and the front face."). The Court concludes that the plaintiff bears the burden of persuasion on identifying the relevant article of manufacture and proving the defendant's total profit on that article. Once again, Proposed Jury Instruction 42.1 read: "A jury verdict will be set aside, based on erroneous jury instructions, if . at 22 (citation omitted). See Jury Instructions at 15-16, Columbia Sportswear N. Better screens for all its smartphones. 2005) (determining whether there was prejudicial error by determining whether "a reasonable jury could have found" for the party proposing the instruction); see also Kinetic Concepts, Inc. v. Blue Sky Med. The reason is that it is already a brand, a valuable brand which has managed to make a place in the hearts of people all around the world. (forthcoming Spring 2018) (manuscript as of Sept. 16, 2017 at 23-24) (http://ssrn.com/abstract=3033231). Id. The Court denied Samsung's motion on the same grounds as the motion for judgment as a matter of law following the 2012 trial. According to Bloomberg's supply chain analysis, Apple accounts for 9% of Samsung's revenue, which makes Apple Samsung's largest costumer. 378. ." FAQ. The same thing vise versa, people who choose Samsung are mostly looking for a cheaper phone, wider choice, expandable storage, easily customized, and an open-source. Hearing Tr. In the October 12, 2017 hearing, Samsung conceded that evidence of how a product is sold would be relevant to determining the amount of total profit on the relevant article of manufacture. Id. It was a small company dealing in fried fish and noodles. See ECF No. of Sacramento, 652 F.3d 1225, 1235 n.11 (9th Cir. ECF No. Nonetheless, all of the five forces influence the . It's not a necessity to introduce Apple. It was not clear Wednesday how much more, if anything, Apple. at 23. Brief for United States as Amicus Curiae Supporting Neither Party ("U.S. 543 F.3d at 678, 681, 683. 219, 223 & n.19 (2013) (explaining history of knowledge requirement). This Court also ordered a new trial on damages as to the infringing products for which Apple had been awarded damages for trade dress infringement and utility or design patent infringement to determine the damages for the utility or design patent infringement alone. Id. Finally, Samsung contends that Apple's first proposed factor, how the defendant sells and accounts for its profits on the infringing profit, conflicts with the U.S. Supreme Court's reasoning in the instant case. UNITED STATES DISTRICT COURT NORTHERN DISTRICT OF CALIFORNIA SAN JOSE DIVISION. iPhones have usually enjoyed more praise than their Samsung counterparts in terms of sheer photo quality, image consistency, and video quality. Each company won numerous decisions against the other during 2012-2015, quite often in contradictory rulings from German, American, Japanese, South Korean, Italian, French, British, Dutch, and Australian courts. Four days before, January 4, 2007 . 2013. According to Bloomberg's supply chain analysis Apple accounts for 9% of Samsung's revenue which makes Apple . These behemoths fought each other like wild animals. A federal court in Australia, December 2011 April 2012: Apple failed to block Samsung from selling some 4G-enabled products to US consumers. at 10-11 (citing, e.g., Concrete Pipe & Prod. Overall, the Court's allocation of the burdens of persuasion and production is consistent with how the court in Columbia Sportswear instructed the jury in that case. 2783 at 40. 1st Sess., 1 (1886)); see also Supreme Court Decision, 137 S. Ct. at 433 (citing S. REP. NO. Accordingly, the defendant must bear the burden of production on any deductible costs that it argues should be subtracted from the profits proved by plaintiff. In fact, Samsung resisted attempts by Apple to obtain data about the costs of components of Samsung's infringing phones. . Apple argues that it would be appropriate to shift the burden of persuasion to identify the relevant article of manufacture on the defendant because the defendant has superior knowledge of the infringing product's components. The android vs apple war. . . This discussion was held at the 3 day executive education workshop for senior executives at the Program on Negotiation at Harvard Law School. What's the difference between a utility patent and a design patent? The jury's decision is the latest step in a long-running . Cir. of Oral Arg. Apple argues that such a shift in burden is consistent with 289's disgorgement-like remedy, because in other disgorgement contexts the defendant bears the burden to prove any deductions. Let us discuss it in further detail. 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It is an American multinational company specializing in consumer products in the tech line. document.getElementById( "ak_js_1" ).setAttribute( "value", ( new Date() ).getTime() ); Understanding how to arrange the meeting space is a key aspect of preparing for negotiation. The question before us is whether that reading is consistent with 289. However, the Federal Circuit held that, as recognized in Nike, 138 F.3d 1437, Congress rejected apportionment for design patent damages under 289. PON Program on Negotiation at Harvard Law School - https://www.pon.harvard.edu, By This turns out to be the best solution. However, there have been some production or distribution wins as well. Cir. This turns the eyebrows up for Samsung. 476, 497 (D. Minn. 1980) ("The burden of establishing the nature and amount of these [overhead] costs, as well as their relationship to the infringing product, is on the defendants."). "Section 289 of the Patent Act provides a damages remedy specific to design patent infringement." at 9. The suit later went to trial twice, with Apple ultimately winning more than $409 million. at 9. Samsung cites three categories of evidence to show that the jury could have found an article of manufacture that was less than the entirety of each infringing Samsung phone. See Apple Opening Br. The Court acknowledges Apple's concern that the defendant may apply the patented design in a way that differs from the way that the plaintiff claimed the design in its patent, which would leave the scope of the claimed design with little significance. 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Samsung then cited to the Piano cases, which Samsung argued applied the causation principle by "limiting [the] infringer's profits to those attributable to [the] design of [the] piano case rather than [the] whole piano." Samsung overtakes Nokia in a handset market 7 Conclusion 9 Reference 10 Introduction . Apple and Samsung will most probably rule until someone innovates in between. An appeal is expected. . This is in part because "historically, the concept encompassed two distinct burdens: the 'burden of persuasion,' i.e., which party loses if the evidence is closely balanced, and the 'burden of production,' i.e., which party bears the obligation to come forward with the evidence at different points in the proceeding." As this example of negotiation in business suggests, mediation as a dispute resolution technique between business negotiators is far less likely to succeed when the parties are grudging participants than when they are actively engaged in finding a solution. 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