It is the trial that can change the face at how patents will be dealt with, even at the price of billions of dollars, involvement of technology companies, and courts worldwide.
The Apple and Samsung patent infringement trial, to some, may be based on who copied who but it could result in the ban of several popular devices, production, loss of revenue, to even layoffs.
2011: The First Complaint
The origin of the trial started in 2011 when Apple Inc. filed documents to sue Samsung Electronic Company.
According to Apple's complaint from April 2011, the Cupertino-based company touted its accomplishments of the iPhone, iPod Touch, and iPad, noting analysts, consumers, and reviewers commenting the iPhone as a "game changer" in the market.
Apple added that its "creative achievements" resulted in "broad intellectual property protection for Apple's innovations, including utility and design patents, trademarks, and trade dress protection."
Then arrives the infringement accusation.
"Nevertheless, Apple's innovations have been the subject of widespread emulation by its competitors, who have attempted to capitalize on Apple's success by imitating Apple's innovative technology, distinctive user interfaces, and elegant and distinctive product," as it is stated in Apple's complaint.
Samsung is referred to as "one of the principal imitators" by Apple.
"Instead of pursuing independent product development, Samsung has chosen to slavishly copy Apple's innovative technology, distinctive user interfaces, and elegant and distinctive product and packaging design, in violation of Apple's valuable intellectual property rights."
Apple directly states Samsung's Galaxy phones and tablets to look like Apple's devices "through widespread patent and trade dress infringement" and "misappropriated Apple's distinctive product packaging." The Samsung devices in question in the complaint are the Samsung Captivate, Continuum, Vibrant, Galaxy S 4G, Epic 4G, Indulge, Mesmerize, Showcase, Fascinate, Nexus S, Gem, Transform, Intercept, Acclaim smartphones, and the Galaxy Tab.
Apple notes it has protected its designs and "cutting-edge" technologies through a range of intellectual property rights.
"[Samsung's] copying is so pervasive, that the Samsung Galaxy products appear to be actual Apple products-with the same rectangular shape with rounded corners, silver edging, a flat surface face with substantial top and bottom black borders, gently curving edges on the back, and a display of colorful square icons with rounded corners. When a Samsung Galaxy phone is used in public, there can be little doubt that it would be viewed as an Apple product based upon the design alone," continued the Apple complaint.
Apple believes Samsung had many options in developing their smartphones series since previous Samsung smartphone "did not embody the same combination of elements of Apple's trade dress."
Apple is hoping for a judgment that awards Apple all damages based on the infringes in questions by Samsung in "an amount to be proven at trial..."
This is not the first time Apple filed complaints against other tech companies, such as Amazon, HTC, Microsoft, Nokia, and Motorola, and unbeknown at the time, some of these tech companies will play a role in the Apple vs. Samsung patent infringement trial.
2012: Start of the Trial
Samsung's Briefing Ahead of the Trial
It will take over a year for the trial to begin.
According to Samsung in their trial brief ahead of the July court session, "Apple seeks to stifle legitimate competition and limit consumer choice to maintain its historically exorbitant profits."
The South Korean-based company added that it does not need or want to copy Apple and instead it wants to be the best in the competition by producing unique products. It further noted Samsung had begun designing their next smartphones with a rounded rectangular body that is dominated by a screen and only one button on the surface.
Samsung further adds that Apple did not participate in the smartphone market until 2007 with the iPhone while Samsung has been around providing mobile technology since 1991. Samsung notes it has and still does provide technology to Apple, such as the A5X processor and the Retina Display for the iPad as well as flash memory and application processor for the iPhone.
Samsung also refers to Sony's device plans that would soon look like the iPhone.
"For its part, Apple's 'revolutionary' iPhone design was derived from the designs of a competitor-Sony. In February 2006, before the claimed iPhone design was conceived of, Apple executive Tony Fadell circulated a news article to Steve Jobs, Jonathan Ive and others. In the article, a Sony designer discussed Sony designs for portable electronic devices that lacked buttons and other 'excessive ornamentation,' fit in the hand, were 'square with a screen' and had 'corners [which] have been rounded out.'"
Samsung accuses Apple of directing industrial designer Shina Nishibori to prepare a design for Apple's phone. Unfortunately, the description and photo of Nishibori's designed phone was censored in the court document released to the public.
The Trial and Billion-Dollar Verdict
Apple demanded more than $2.5 billion in sales, damages, and lost profits due to the alleged infringements Samsung caused. The damages include $500 million for the lost profits, $25 million in royalties, and $2 billion in Samsung's profits, according to Fortune.
In return, Samsung is demanding 2.4 percent of Apple's sales in its mobile communications technology.
After extensive questions and diagrams, a verdict came on Aug. 24 with nine jurors awarding $1,049,393,540 billion to Apple, or simply $1.05 billion.
According to Nick Wingfield of the New York Times, "That is not a big financial blow to Samsung, one of the world's largest electronics companies. But the decision could essentially force it and other smartphone makers to redesign their products to be less Apple-like, or risk further legal defeats."
The verdict came after three days of deliberation in a trial overseen by District Court Judge Lucy Koh. The jurors, consisting of seven men and two women, believed Apple caused no infringement.
Upon news of the verdict, Apple stated, "We are grateful to the jury for their service and for investing the time to listen to our story and we were thrilled to be able to finally tell it. The mountain of evidence presented during the trial showed that Samsung's copying went far deeper than even we knew. The lawsuits between Apple and Samsung were about much more than patents or money. They were about values. At Apple, we value originality and innovation and pour our lives into making the best products on earth. We make these products to delight our customers, not for our competitors to flagrantly copy. We applaud the court for finding Samsung's behavior willful and for sending a loud and clear message that stealing isn't right."
Samsung replied with, "Today's verdict should not be viewed as a win for Apple, but as a loss for the American consumer. It will lead to fewer choices, less innovation, and potentially higher prices. 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. Consumers have the right to choices, and they know what they are buying when they purchase Samsung products. This is not the final word in this case or in battles being waged in courts and tribunals around the world, some of which have already rejected many of Apple's claims. Samsung will continue to innovate and offer choices for the consumer."
An appeal was expected and completed by Samsung while Apple wanting to go a step further and wants the court to ban the devices in question.
The second installment of the Apple vs. Samsung Patent Infringement Trials continues on Tues. Dec. 11, with "Apple vs. Samsung Lawsuit & Patent Infringement Trials - Part 2: The World Stage: How the Trial is Proceeding in Asia and Europe." Wednesday's third installment will feature the roles of other technology companies such as Ericsson, HTC, and Motorola. Part 4 will present what has happened in the US trial since the Aug. 24 verdict. The final installment will be experts' thoughts on the trial and the future of Apple, Samsung, and patent infringement trials.
To view Apple's April 2011 complaint, click here.
The Aug. 24 verdict form:
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