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Lewis Stickley/PA Archive/Press Association Images

Jurors begin deliberations in Apple/Samsung patent trial

Each company is accusing the other of stealing design technology. Take a look back at the legal row here…

NINE SILICON VALLEY residents who presided over the epic three-week patent trial between smartphone titans Apple Corp. and Samsung Electronics Co. began deliberating the multibillion-dollar case today.

Apple is demanding Samsung pay it $2.5 billion for allegedly stealing the design technology of the iPad and iPhone to create illegal knockoffs. Samsung counters that Apple stole its technology and is demanding $399 million.

During closing arguments yesterday, a lawyer for Apple said that Samsung was having a “crisis of design” after the launch of the iPhone, and executives with the South Korean company were determined to illegally cash in on the success of the revolutionary device

Samsung’s lawyer countered that the technology giant was simply and legally giving consumers what they want: Smart phones with big screens. Lawyers finished their closing arguments late yesterday.

The competing claims came after last-minute talks between chief executives failed to resolve the dispute.

Apple Corp. argues that Samsung Electronics Co. should pay the Cupertino-based company $2.5 billion for ripping off its iPhone and iPad technology when it marketed competing devices.

Massive infringement?

Samsung has sold 22.7 million smartphones and tablets using stolen — “infringed” in legalese — Apple technology since June 2010 on sales of $8.16 billion, Apple’s lead attorney, Harold McElhinny told jurors.

“The damages in this case should be large because the infringement has been massive,” he said.

McElhinny said Apple confronted Samsung about the alleged copying and sought a resolution before filing its lawsuit last year.

“Instead of doing the right thing, Samsung decided to gin up claims of its own,” McElhinny said of Samsung’s counter claim seeking $399 million from Apple for allegedly using Samsung technology in making the iconic iPhone and iPad.

Apple and Samsung combined account for more than half of global smartphone sales. Apple is also demanding that Samsung pull its most popular cellphones and computer tablets from the U.S. market.

“Apple is asking what it is not entitled to,” Samsung’s lawyer Charles Verhoeven said during his closing arguments. “Rather than competing in the marketplace, Apple is seeking an edge in the courtroom.”

Verhoeven argued that the state of technology has led most phone makers to design simple-to-use products with large, rounded rectangular faces. He conceded that Apple makes great products but said it doesn’t have a monopoly on the design it claims it created.

“There is nothing nefarious about this, it’s the way technology has evolved,” he said, showing jurors a slide of a Best Buy advertisement with photos of similar looking phones made by several different companies. “It’s not against the law in this country to be inspired by your competition.”

Verhoeven implored jurors to reject Apple’s claims as a way to preserve competition in the United States for smartphones and computer tabs. He said a verdict in Apple’s favor could reverberate throughout the marketplace.

“Consumers deserve a choice,” the lawyer argued.

Samsung: The underdog

The jury of nine people will consider the case after hearing three weeks of testimony from technology experts, patent professionals and company executives.

Apple’s damage demands, if awarded, would represent the largest patent verdict in the U.S.

From the beginning, legal experts and Wall Street analysts have viewed Samsung as the underdog. To begin with, Apples headquarters is a mere 10 miles from the courthouse, and jurors were picked from the heart of Silicon Valley where the company’s late founder Steve Jobs is a revered technological pioneer.

While the legal and technological issues may be complex, patent expert Alexander I. Poltorak says the case will likely boil down to whether jurors believe Samsung’s products at issue look and feel almost identical to Apple’s iPhone and iPad.

“Most jurors will probably say they look alike,” said Poltorak, who is chief executive of General Patent Corp.

In June, U.S. District Judge Lucy Koh called Samsung’s Galaxy 10.1 tablet computer “virtually indistinguishable” from Apple’s iPad and banned its sale in the United States until the resolution of the case.

“There was some evidence that Samsung altered its design to make its product look more like Apple’s,” Koh found two months before the trial started.

To overcome that hurdle, Samsung’s battalion of lawyers has been arguing that many of Apple’s claims of innovation are either obvious ideas or were actually stolen ideas from Sony Corp. and others. Experts called that line of argument a high-risk strategy because of Apple’s reputation as an innovator.

“Saying Apple is a copyist is going to be a hard sell,” said Ellen Brickman, a New York-based jury and trial consultant. “Apple changed the world when it came to computers. Apple changed the world when it came to phones.”

Poltorak said a verdict in Apple’s favor would cost Samsung a lot of money but wouldn’t dramatically disrupt the smartphone markets. He predicted that Samsung engineers would quickly redesign the company’s smartphone and computer tablets to compete if Apple wins the lawsuit.

Apple lawyers argue there is almost no difference between Samsung’s products and those of Apple, and presented Samsung’s internal documents they say show it copied Apple’s designs. Samsung lawyers countered that several other companies and inventors had previously developed much of the Apple technology at issue.

The U.S. trial is just the latest skirmish between the two over product designs. The two companies have been fighting in courts in Australia, the United Kingdom and Germany.

The case is one of some 50 lawsuits among myriad telecommunications companies jockeying for position in the burgeoning $219 billion market for smartphones and computer tablets.

Read: These iPhone 5 leaks suggest some big changes ahead>

Earlier: US court blocks sales of Samsung Galaxy Tab in patent dispute>

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28 Comments
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    Mute Wes Freeman
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    Aug 22nd 2012, 10:20 PM

    what a load of crap, at this rate tv manufacturers can sue each other for having similar looking products. i hope apple are told where to go.

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    Mute Stephen Church
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    Aug 22nd 2012, 11:13 PM

    imagine every television was circular, then you invented a rectangular television, then everyone else switched to a rectangular television and had company memos detailing how to copy your design exactly, but differ it by such a small percentage to not get caught, then every time you updated your design they did in similar ways, put their televisions right next to yours in shops and sold them just a little bit cheaper and copied the layout of the remote control and everything else, even the colours to get as close as possible to yours, I think youd be a bit pissed off.

    simpler logic mostly for women : you get to a party wearing a dress you designed for 600 euro , theres somebody else there with an almost identical dress that they had made by a shop for 99 euro , then you find proof they spied on you to see what you were going to wear and copied it almost exactly, and this person kept doing this every time you made a new dress , then claimed they had the idea all on their own ,

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    Mute Wes Freeman
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    Aug 22nd 2012, 11:48 PM

    simpler logic for women, are you serious?!

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    Mute Stephen Church
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    Aug 23rd 2012, 12:21 AM

    I meant the example of dresses at a party would be more relevant to women , not too many men would care if another man was wearing the same clothes, sentance structure fail, but now that ive said it ill stick to it , trololololol

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    Mute Gaius Gracchus
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    Aug 23rd 2012, 1:02 AM

    First date Wes?!

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    Mute Eddie Munster
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    Aug 23rd 2012, 2:41 AM

    I always like the under dog more especially in this case up Samsung their cheaper than iPhone

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    Mute Paddy O'Reilly
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    Aug 23rd 2012, 8:50 AM

    Stephen: I guess you’d then agree that Apple should pay LG for copying the design of the LG Prada when making the iPhone and HP for copying their slate. http://lawwithanapple.com/wp-content/uploads/2010/01/Ballmer_HP_Tablet_2.jpg
    Apple didn’t invent these formfactors (tablets have been around since the ’90′s) they just refined the design.
    Your claim that Samsung only changed the designs a little bit are totally false, the iPad is a portrait product while the Galaxy tab is a landscape product, while their phones exceed Apple’s on both screen size & capability.

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    Mute Carlos Bandanas
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    Aug 22nd 2012, 10:38 PM

    Go team android!!!

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    Mute Les Rock
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    Aug 22nd 2012, 10:41 PM

    i was gonna say that Carlos you thief…Im gonna sue you now:-)

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    Mute Barry
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    Aug 22nd 2012, 10:49 PM

    I was going to say that and in fact I have that trade marked so ill see the two of you in court!

    :)

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    Mute Les Rock
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    Aug 22nd 2012, 10:55 PM

    Ill have you know Barry I’ve a team of lawyers on the case…you shall receive a letter from lionel hutz & associates soon.

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    Mute Carlos Bandanas
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    Aug 22nd 2012, 11:35 PM

    what if I said ‘Team Android. Go!’ Would I have to pay the 2.5 billion? Also if we’re hiring lionel hutz, I want the free smoking monkey.

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    Mute Eric
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    Aug 22nd 2012, 10:56 PM

    As much as I love apple gadgets, it would be a dark day if apple were granted a monopoly on the black rectangle with a large home button.

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    Mute Barry
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    Aug 22nd 2012, 11:35 PM

    I have to agree, I like apple products… hell I have a iMac and MacBook and even had first gen iPhone but its just wrong to do what they want,

    if you applied the same logic to TVs then nobody could have a large screen with a black case around it and a infrared remote

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    Mute Biggins31
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    Aug 22nd 2012, 11:15 PM

    Its ironic that Apple are complaining of others copying/stealing – when they stole from Xerox.
    Google it – its well recorded!

    Karma Apple?

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    Mute Barry
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    Aug 22nd 2012, 11:32 PM

    xerox basically gave their tech away, they didn’t know what it was worth.and it drove thestaff in their R&D dept mad at the time,

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    Mute Biggins31
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    Aug 22nd 2012, 11:47 PM

    …And didn’t Apple do well out of it, what they are accusing others of now!
    They have selective memory.

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    Mute Bilbo Baggins
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    Aug 23rd 2012, 12:14 AM

    Steve jobs himself said all he ever did was take other peoples ideas and do them a different way. pot callin the kettle black when the tables are turned I reckon

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    Mute Warren Kennedy
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    Aug 22nd 2012, 11:11 PM

    How do you like them apples

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    Mute Noel Cronin
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    Aug 23rd 2012, 12:49 AM

    Happy days when a mobile phone was for playing snake, and receiving the odd call or text message.

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    Mute Mark
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    Aug 23rd 2012, 1:35 AM

    This argument between these corporations is becoming very old. 99% of the consumer doesn’t give a shit who came up with what.

    Regards
    Team Samsung

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    Mute Emer Walsh Roy
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    Aug 23rd 2012, 8:40 AM

    Better call Saul!!

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    Mute Gaius Gracchus
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    Aug 23rd 2012, 1:05 AM

    Both companies, Apple and Samsung, are both competing to rape each and every consumer, and that’s their business, but it’s a bit sad when people take sides

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    Mute Paul Mallon
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    Aug 23rd 2012, 9:28 AM

    Not really. People have no problem shelling out four or five hundred for a laptop, yet expect the same (or sometimes more powerful) technology to some how be cheaper when it’s packed into a device one tenth of the size.
    The latest generation of high end phones are priced reasonably fairly IMO. Of course I’d like them cheaper, but I don’t think we’re being ripped off.

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    Mute Julie
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    Aug 23rd 2012, 9:46 AM

    Greed… Bottom line… There was only an article on this the other day about apples MASSIVE profit this year…. It will be interesting to see the judgement on this one!!!

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    Mute Mary Walsh
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    Aug 23rd 2012, 4:44 AM
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    Mute Shane Hickey
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    Aug 23rd 2012, 10:27 AM

    isn’t it Apple Inc? surely Apple corp belong to the Beatles?

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