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Samsung declares Apple's $2.2B claim an exaggeration

Posted: 23 Apr 2014 ?? ?Print Version ?Bookmark and Share

Keywords:Samsung? Apple? patent case?

The Apple-Samsung patent case has spawned claims and counterclaims that were hurled by both parties inside the courtroom. Presiding Judge Lucy Koh looks to finalise witness examination by end of the week.

Samsung's last witness in defence was Judith Chevalier, a finance and economics professor at Yale University's School of Management. Her testimony was for the most part designed to discredit once more the monetary damages John Hauser of MIT calculated for Apple and last week's testimony of Christopher Vellturo, Apple's expert on damages.

Under the assumption Samsung will be found to have broken patent laws, Chevalier estimated Apple's damages to be approximately $38 million, a mere nuisance for Samsung in comparison with the $2.2 billion Apple is seeking. It was disclosed that Chevalier has also testified for Apple in other court cases about damage remedy.

Chevalier broke her calculations into three categories: Apple's lost profits due to diminished demand for products; lost profits because of Samsung's faster time to market by way of patent infringement; and reasonable Apple royalties payable by Samsung. She described several approaches and methods to calculate damages for each category, all of which produce results in a fairly tight range of zero to less than 50 cents per each infringed patent in every unit sold. She then used guideline precedents from other court cases to arrive at her own number of 35 cents.

Apple lawyer William Lee attempted to discredit some of Chevalier's methods as unorthodox and not having been written up in academic studies or used in earlier court cases. Samsung has sold 38 million units, he said, and was therefore particularly sceptical of Chevalier's result of zero profits as a result of lost sales. Chevalier responded that she compensated for it in estimation of lost royalties and that the 35 cent number was reasonable on all counts.

Lee followed a similar strategy in a continuing cross examination of Tlin Erdem earlier in the day. He sought to have her concede that the eye tracking technology applied to survey consumer choice of smartphones had never been used in any court case, but Erdem appeared to take that as a compliment and indicated she was flattered by being a pioneer.

Samsung's infringement complaint against Apple centres on smartphone technology for image storage as well as for video capture, compression, and transmission across devices. The parties stipulated in court today that Samsung owns the last patent, which covers the use of cellular technology for these capabilities.

Dr. Dan Schonfeld, professor of electrical and computer engineering at the University of Illinois, provided evidence to demonstrate the Facetime video call feature and attachment of video to email in iPhone 4, iPhone 4s, and iPhone 5 all infringe on Samsung's patent. He described his review of depositions of Apple employees, user manuals, and source code. He also showed the judge and the jury confidential Apple presentation documents court watchers were not allowed to see but Schonfeld claimed indicate that Apple benchmarked the Facetime feature against a Samsung device.

The examination of the image storage patent violation is likely to conclude on Tuesday with a former Kodak expert on digital photography, cameras, and image processing on the stand.

- Magnus Thordarson
??EE Times

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