Skip to main content

The context you need, when you need it

When news breaks, you need to understand what actually matters — and what to do about it. At Vox, our mission to help you make sense of the world has never been more vital. But we can’t do it on our own.

We rely on readers like you to fund our journalism. Will you support our work and become a Vox Member today?

Join now

In its new Apple v. Samsung ruling, the Supreme Court has changed how patent damages are calculated

The amount Samsung has to pay, though, is back in a lower court’s lap.

Ina Fried

The Supreme Court handed a huge victory to Samsung on Tuesday, tossing out nearly $400 million in damages it was ordered to pay to Apple in their long-running patent infringement case.

The ruling, while sending Apple’s specific case back to a lower court, changes the landscape for how design patent verdicts can be calculated.

A federal jury had earlier ordered Samsung to pay Apple $399 million for infringing on design patents used in Apple’s iPhone, one part of a larger patent verdict for Apple.

That amount was based on Samsung’s entire profits for the Samsung phones that were found to infringe. However, the Supreme Court ruled Tuesday that damages need not be calculated based on the profits for an entire device.

The case had been closely watched as it was the first time in more than a century that the Supreme Court had looked at design patents, with plenty of big companies weighing in.

Samsung had backing from tech giants Google, Dell, HP and Lenovo, while Apple’s position was backed by a host of companies including Tiffany & Co., Adidas and plastic shoemaker Crocs.

In a unanimous opinion, the court ruled Tuesday that juries need not award damages based on the profits for an entire product if the item consists of many parts.

“In the case of a multicomponent product, the relevant ‘article of manufacture’ ... need not be the end product sold to the consumer but may be only a component of that product,” justice Sonia Sotomayor wrote in the court’s unanimous opinion.

However, the Supreme Court didn’t actually decide how damages should be calculated in this case. Instead, it decided a lower court could sort that out and sent the case back to the trial court for yet more hearings.

“Unfortunately, the court did not give lower courts any guidance as to how to determine whether the “article of manufacture” in any given case is the product sold to consumers or a component,” said University of Notre Dame law professor Mark McKenna. “Presumably it has something to do with the nature of the design patent claim, but the court did not make that clear.”

So, even after a trip to the Supreme Court, the case of Apple v. Samsung continues.

Apple, though, really lost this battle when it failed to get an injunction halting sales of Samsung phones. Since then, it’s basically been about how much money Samsung does or doesn’t have to pay — and the amounts here are essentially chump change for both.

Here is the court’s full ruling.

Supreme Court rules Apple need not be awarded Samsung's entire profit for infringing on iPhone design paten... by inafried on Scribd

Update, 1:00 p.m. PT: Apple said it remains optimistic that the lower court will choose to maintain a significant damage award to “again send a powerful signal that stealing isn’t right.”

“Our case has always been about Samsung’s blatant copying of our ideas, and that was never in dispute,” Apple said in a statement. “We will continue to protect the years of hard work that has made iPhone the world’s most innovative and beloved product.”

This article originally appeared on Recode.net.

More in Technology

Podcasts
Are humanoid robots all hype?Are humanoid robots all hype?
Podcast
Podcasts

AI is making them better — but they’re not going to be doing your chores anytime soon.

By Avishay Artsy and Sean Rameswaram
Future Perfect
The old tech that could help stop the next airborne pandemicThe old tech that could help stop the next airborne pandemic
Future Perfect

Glycol vapors, explained.

By Shayna Korol
Future Perfect
Elon Musk could lose his case against OpenAI — and still get what he wantsElon Musk could lose his case against OpenAI — and still get what he wants
Future Perfect

It’s not about who wins. It’s about the dirty laundry you air along the way.

By Sara Herschander
Life
Why banning kids from AI isn’t the answerWhy banning kids from AI isn’t the answer
Life

What kids really need in the age of artificial intelligence.

By Anna North
Culture
Anthropic owes authors $1.5B for pirating work — but the claims process is a Kafkaesque messAnthropic owes authors $1.5B for pirating work — but the claims process is a Kafkaesque mess
Culture

“Your AI monster ate all our work. Now you’re trying to pay us off with this piece of garbage that doesn’t work.”

By Constance Grady
Future Perfect
Some deaf children are hearing again because of a new gene therapySome deaf children are hearing again because of a new gene therapy
Future Perfect

A medical field that almost died is quietly fixing one disease at a time.

By Bryan Walsh