Samsung Electronics Comp., Ltd. (KSC:005930) is still reeling from a massive $1.05B USD jury verdict loss to Apple, Inc. (AAPL) in Californian federal court. Now Apple has added insult to injury, asking a judge to triple the damages. If the judge accepts Samsung would now owe Apple over $3B USD.
I. Apple Looks to Triple Its Court Payday
The request comes due to federal rules regarding “willful” infringement. In such cases, the plaintiff is allowed to request that a judge multiply the damages as a punishment to the infringer. As the jury ruled that Samsung not only infringed, but also did so “willfully”, Apple was eligible to make such a request.
A report in the Korea Times quotes an unnamed “senior legal executive” as saying, “By using that condition, Apple has decided to request the judge to order Samsung to pay more than $3 billion in the hearing on the San Jose verdict on Sept. 21 in California. The decision means Apple want to quickly address the harm that Samsung’s infringing products are said to be causing. As has been the case throughout this trial, Apple is pressing its full advantage over the jurors’ decision.”
Another legal source was quoted as saying that Apple is simply trying to levy more severe provisions against Samsung in an effort to kick it out of the market. That source argues no amount of damages will satisfy Apple until it can kick its rival out.
Sources say Apple won’t be satisfied until it kicks Samsung out of the market. [Image Source: AFP]
Comments the source, “Apple lawyers still believe Samsung should pull its popular Galaxy line of devices including smartphones and tablets from the United States and leave the market to proprietary handsets from Apple and Microsoft.”
II. Kicking Out a Bigger Competitor
Currently, Samsung outsells Apple’s smartphones 2-to-1 globally. If Apple can indeed “kick Samsung out” of the global market (or at least the lucrative U.S. market), it could go on to dominate the smartphone market.
Samsung, however, is bracing itself for a tough fight to try to prevent that from happening. It’s countering Apple’s request to Judge Lucy Koh, the presiding judge in the case, with a counter-request to toss parts of the jury verdict, reducing the damages. If it cannot succeed, it will drag the case into the U.S. Federal Appeals Courts.
Some say despite the pending bans, Samsung may be able to stay ahead of Apple.
[Image Source: Reuters]
Judge Koh this week upheld a ban on Samsung’s Galaxy Tab 10.1 in the U.S.
The South Korean phone maker is also hedging its bets, increasing its Windows Phone 8 offerings. Jumping ship from Google Inc.’s (GOOG) Android operating system to Microsoft Corp.’s (MSFT) Windows Phone 8 could offer an easy escape route for Samsung, as Apple presumably can’t sue Windows Phone makers due to its cross-licensing pact with Microsoft.
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