Apple's annual developer conference in San Francisco.
Apple Seeking $2.5 Billion from Samsung in U.S. Patent and Design Infringement Trial
Samsung has reaped billions of dollars in profits and caused Apple to lose hundreds of millions of dollars through its violation of Apple's intellectual property. Apple conservatively estimates that as of March 31, 2012, Samsung has been unjustly enriched by about [redacted; presumably $2 billion] and has additionally cost Apple about $500 million in lost profits. Apple also conservatively estimates that it is entitled to over $25 million in reasonable royalty damages on the proportionately small set of remaining sales for which it cannot obtain an award of Samsung's profits or Apple's own lost profits, for a combined total of $2.525 billion.
Mueller notes that Apple is not allowed to collect both royalties and profits from a single device, and thus focuses its claims on the $2 billion figure related to design infringement, as that tactic would allow Apple to request both lost profits of its own and unfairly earned profits by Samsung on those devices. In calculating the royalty rates it believes it is owed for Samsung's use of Apple's intellectual property, Apple arrived at the following figures:
These are the per-unit royalties that Apple calculated for its different intellectual property rights-in-suit:On a separate note, Apple's filings also reveal its estimates of how much it should pay in royalties for Samsung's patents, which are related to 3G standards and are required to be licensed under fair and reasonable terms. While Samsung has been requesting a royalty rate of 2.4% on Apple's sales of 3G devices, Apple argues that the amount should only be one-half cent per unit based on Samsung's small share of essential 3G patents and a belief that the royalty should be calculated on the cost of the baseband processor rather than the entire device.
- $2.02 for the "overscroll bounce" (or "rubber-banding") '318 patent
- $3.10 for the "scrolling API" '915 patent
- $2.02 for the "tap to zoom and navigate" '163 patent
- $24 for use of any of Apple's design patents or trade dress rights
As part of the ongoing court case, Apple CEO Tim Cook met with Samsung CEO Choi Gee-sung back in late May, but the negotiations yielded little progress. Reuters reported yesterday that the two executives met again last week but that the sides remain far apart in their valuations of their respective intellectual property.