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U.S. Supreme Court rules in favor of Samsung in patent case

U.S. Supreme Court rules in favor of Samsung in patent case

Posted December. 08, 2016 07:53,   

Updated December. 08, 2016 08:28

한국어

Samsung Electronics has won an important decision over the value of design patents against Apple. The eight U.S. Supreme Court justices unanimously ruled Tuesday local time that Samsung does not have to pay nearly 400 million dollar verdict, which Apple had won against the Korean manufacturer for copying elements of iPhone design.

The design patent dispute reached the Supreme Court, which occurred in more than 120 years. The Supreme Court hears appeal cases of below 1 percent of the total annual application number.

Samsung Electronics' shares rose to a record high following the ruling. Its shares rose by 1.37 percent to close at 177.2 million won on Wednesday, topping the previous record high of 174.9 million won recorded on November 1.

The key issue at this appeal hearing was to decide whether the 399 million dollar payout for infringing three patents was reasonable.

The issue dates back to April 2011 and an appellate court had ruled in favor of Apple later, ordering Samsung to pay 399 million dollars in damages by infringing Apple’s three design patents filed as D677 (black square with rounded corners), D087 (bezel liquid crystal display) and D305 (grid-type app array). The lower court’s ruling was based on the U.S. Patent Act’s Section 289 that states selling an article of manufacture with a patented design is illegal, and that patent infringers shall be liable to the owner to the extent of the total profit.

In December last year, Samsung appealed the appellate court’s decision regarding the calculation of damages, arguing that it should not have to pay all profits it earned for products just because it infringed on three patents, given that smartphones are a complicated technology device with more than 200,000 patented technologies.

The Supreme Court justices ruled Samsung Electronics may not be required to pay all the profits.

Electronics sector experts say that the ruling will go beyond adjusting the damage amount between Samsung and Apple and will result in positive changes such as promoting various competitions. Since the court delivered an open precedent on a patent dispute that tends to be based on subjective and vague judgments, late comers in the sector will be given more chances to prosper.

Global IT companies including Facebook, Google and eBay have publicly advocated Samsung, claiming that people do not purchase latest technology products just because of design. If penalties are applied too broadly regarding patents, corporate research and development investments, which amount to billions of dollars every year, could be set back.

"Global IT companies have been keenly watching the patent suit," Samsung Electronics said. "The ruling is expected to facilitate fair competition in the market and technology development."



Ji-Hyun Kim jhk85@donga.com · Gun-Huk Lee gun@donga.com