A Patent War of Titanic Proportions (2012)

APPLE VERSUS SAMSUNG: A PATENT WAR OF TITANIC PROPORTIONS
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JEAN-FRANÇOIS JOURNAULT
ROBIC, LLP
LAWYERS, PATENT AND TRADE-MARK AGENTS
In a context where patent litigation often gives the impression of trench warfare, the
legal saga pitting Apple against Samsung looks like a global conflict.
The two companies have been fighting for some time in patent litigation across
several continents, notably in Australia, South Korea, Japan, Germany, France, Italy,
the Netherlands, Great Britain and the United States. In some cases, Apple filed the
original lawsuit for patent infringement, while on other occasions
Samsung commenced proceedings. However, in most cases, the accused company
retaliated with its own lawsuit to invalidate the cited patents and further alleging
infringement of some of its own patents. Litigation with Apple in Europe, Australia and
the United States has lead, in some cases, to the issuance of temporary injunctions
preventing Samsung from importing certain models of its smartphones and tablets in
those jurisdictions.
Although many of these orders were subsequently overturned or rendered obsolete
by the development of modified devices to circumvent the allegedly infringed
features, it still remains that Apple benefited from a temporary competitive advantage
in some target markets. Damages were also awarded to both sides at the conclusion
of certain of the disputes.
Among the many disputes, the most interesting battle is probably the one occurring in
the United States, which particularly merits our attention. Indeed, it is south of the
border that the hostilities between the parties started with a lawsuit filed by Apple in
April 2011 with the Federal Court District of California. Apple alleged that some units
sold by Samsung infringed some of its patents, in addition to violating its trademarks
rights, the user interface and the look and feel of the iPhonesTM and the iPadTM.
The first round of this confrontation was won by Apple which, in a decision dated
August 24, 2012, was awarded damages of more than one billion U.S. dollars for the
violation of almost all claimed patents and industrial designs. The jury rejected all the
allegations of infringement made by Samsung in its counterclaim.
© CIPS, 2012.
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From ROBIC, LLP, a multidisciplinary firm of Lawyers, and Patent and Trade-mark Agents. Published
in the Fall 2012 (Vol. 16, no. 3) Newsletter of the firm. Publication 068.155E.
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This decision has now been brought to the Federal Court of Appeals of the United
States, Samsung citing, among other things, irregularities related to the impartiality of
jurors who rendered the decision and challenging the validity of certain cited patents.
At this stage, it is too early to judge the impact of the decision, as the Court of Appeal
or the trial judge could still overturn the jury's verdict. In addition, some post-verdict
motions must also be resolved, including the determination of whether Samsung
infringed certain patents deliberately, which could inflate the damages over 700
million additional dollars.
A second action brought forth by Apple is also underway between these parties in the
United States. This particular case led to a temporary ban on imports of Galaxy
NexusTM phone in the United States earlier this year, a ban that has now been
canceled. It will be interesting to follow the developments in this case, as a trial is
scheduled for March 2014, and is likely to provide its share of surprises along the
way.
A third dispute between the parties could also emerge shortly in the United States
concerning fourteen patents Apple and Samsung set aside in the first case, in order
to facilitate a quick decision. Unlike patents cited in the first trial that were primarily
focused on visual aspects or auxiliary functions of the devices, these fourteen patents
relate to technologies lying at the heart of the devices. Thus, most analysts agree
that the outcome of a trial revolving around these patents may significantly alter the
balance of power between Apple and Samsung, well beyond the previous monetary
award, regardless of the amount.
In conclusion, although this saga has already seen a great deal of spilt ink, it is likely
that the hostilities are far from over. In fact, rarely does a day go by on the planet
without the emergence of a new development in one of the many disputes between
these two competitors, whether it is a judicial decision on a patent infringement issue,
a decision on the validity of a cited patent, or the like. As an example, we can cite the
recent decision of a court in The Hague stating that the range of GalaxyTM products
from Samsung did not violate Apple patents concerning multitasking. In this context,
one can believe that these battles will be just as important as those that were already
fought.
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