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  • Apple Calls in Experts to Explain Why Samsung Owes $2 Billion in Damages


    In the ongoing Apple vs. Samsung lawsuit, two experts hired by Apple took the stand recently to explain to the jury why Samsung deserves to pay $2 billion in damages for infringing on Apple’s patents. First up was John Hauser, a professor of marketing at the MIT Sloan School of Management, who argued that the specific features patented by Apple, such as slide to unlock made Samsung’s devices far more appealing to consumers.

    Hauser surveyed 966 Samsung device users (507 phone owners and 459 tablet owners) to measure the percentage of consumers who would buy devices with specific features including universal search, background syncing, quick links, automatic word correction and slide to unlock among others. The metrics were then used to determine how much people would pay for the Apple-patented features that Samsung included in its devices, with Hauser coming to the conclusion that customers would shell out $32 to $102 for each feature.

    "The features that were enabled by the patents at issue in this case have a measurable impact on consumer demand for Samsung devices," Hauser said during his testimony Tuesday.
    During cross examination, Samsung objected to Hauser’s methodology which had concluded that Samsung largely sold devices due to the features copied from Apple and criticized it for overlooking the importance of the Samsung brand and the Android operating system. Following Hauser’s testimony, MIT-trained economist Chris Vellturo took the stand to explain how Apple arrived at its $2 billion number. The damages according to him are a mix of lost profits and estimated reasonable royalties on the millions Samsung devices that have been accused of infringing on Apple’s patents.

    "It's a very large market and Samsung has made a lot of sales into that market," Vellturo said, before getting into the specifics of how he came to his estimate. Samsung's alleged infringement, he said, came at a time of dramatic growth in the market as many people were buying their first smartphone.

    "It's a particularly significant period for Samsung to have been infringing," Vellturo said, adding that one's first smartphone purchase is a key determining factor in future phone and tablet purchases. He added that Samsung was behind in ease of use and took Apple's know-how to aid its effort to be more competitive.
    In the original Apple vs. Samsung trial, the South Korean giant was ordered to pay Apple $890 million in damages. The latest suit focuses on newer devices, including the Galaxy S III, Galaxy Note II, Galaxy Tab 10.1, the iPhone 4/4S/5, the iPad 2/3/4, the iPad mini, and fourth and fifth gen iPod Touch. After today’s expert testimony, Apple is nearing the end of its case against Samsung. Next week, Samsung will present its infringement case against Apple, where it is asking for $7 million in damages. The entire trial is expected to continue until April 29 or 30, at which point the jury is said to enter deliberations.

    Source: CNET, Re/code, The Verge
    This article was originally published in forum thread: Apple Calls in Experts to Explain Why Samsung Owes $2 Billion in Damages started by Akshay Masand View original post
    Comments 7 Comments
    1. mlee19841's Avatar
      mlee19841 -
      Nice to be a junior on that panel.
    1. Christophxr's Avatar
      Christophxr -
      Apple: Give us $2 billion.

      Samsung: OH, YEAH?! I'LL SUE YOU FOR... for... $7 MILLION!!
    1. bigray's Avatar
      bigray -
      Haha 7mil...
    1. tridley68's Avatar
      tridley68 -
      Samsung stole they got caught now it is time to pay up .
    1. Noodles46's Avatar
      Noodles46 -
      Apple should sue Samsung to the point of bankruptcy. Samsung should stop complaining and just pay up to the company that's contributed to a lot of their success. Very nice to be able to come to a comment section and not see mostly android users bashing apple for once. Not to mention samsung copying apple with their fingerprint reading, I was way surprised when Samsung didn't put 64 bit in their devices tho. But that's next year.
    1. mlee19841's Avatar
      mlee19841 -
      Quote Originally Posted by Noodles46 View Post
      Apple should sue Samsung to the point of bankruptcy. Samsung should stop complaining and just pay up to the company that's contributed to a lot of their success. Very nice to be able to come to a comment section and not see mostly android users bashing apple for once. Not to mention samsung copying apple with their fingerprint reading, I was way surprised when Samsung didn't put 64 bit in their devices tho. But that's next year.
      Or they will re release the galaxy in the middle of the year. With the 64 bit inside.
    1. LivesForJihad's Avatar
      LivesForJihad -
      DailyTech - Analysis: Neonode Patented Swipe-to-Unlock 3 Years Before Apple

      Apple doesn't own slide to touch. I wonder how much the lawsuit should drop by?

      How does Apple own "searching for things"? Sounds like an invalid patent.

      Word correction is a part of Android...not Samsung. Apple is suing the wrong company. Typical fruits on MMi think Samsung invented Android.