Behemoth organizations Samsung and Apple are the pioneers in this segment and one of the most famous rivals in the world. Schaffer v. Weast, 546 U.S. 49, 56 (2005) (quoting J. Samsung countersued Apple for not paying royalties for using its wireless transmission technology. See Supreme Court Decision, 137 S. Ct. at 432-33. at 23. The parties agree that determining the relevant article of manufacture for the purpose of 289 is a question of fact that a jury decides when there is a material factual dispute. at 19. Nevertheless, Apple contends that it was not error for the Court to have declined to give Proposed Jury Instruction 42.1 because that instruction did not have an adequate foundation in the evidence. 282(b); Egyptian Goddess, 543 F.3d at 678-79. at 10-11. "); ROBERT A. MATTHEWS, JR., 4 ANNOTATED PATENT DIGEST 30:9. It instills confusion in consumers. Let us discuss it in further detail. The most famous Samsung phones are Galaxy, after the first launch in 2009. Apple Inc. v. Samsung Electronic Co., Ltd. was the first of a series of ongoing lawsuits between Apple Inc. and Samsung Electronics regarding the design of smartphones and tablet computers; between them, the companies made more than half of smartphones sold worldwide as of July 2012. The entire spat began when Apple documented suit against Samsung in April 2011, blaming its opponent for duplicating the look and feel of its iPhones and iPads. Moreover, Samsung argued that "[t]he record contains no evidence that the entire sales value of Samsung's products was attributable to their outer casings or GUI, as opposed to the numerous noninfringing technological components that enable the devices to function and drive consumer choice." A nine-person jury sided with Apple on a majority of its patent infringement claims against Samsung. Early resolution is sometimes best. More specifically, a judgment may be altered based on an erroneous jury instruction by a party if "(1) [the party] made a proper and timely objection to the jury instructions, (2) those instructions were legally erroneous, (3) the errors had prejudicial effect, and (4) [the party] requested alternative instructions that would have remedied the error." It's not a necessity to introduce Apple. Apple continued to dominate the smartphone market for years until Samsung introduced its Galaxy series in 2013 and emerged as a tough competitor. In that motion, Samsung mixed the apportionment and article of manufacture theories. 880 at 10-14 (Magistrate Judge Grewal imposing sanctions for Samsung's delay in providing documents including the "'costed bills of materials' for the accused products"). Id. Back in April 2011, Apple had filed a lawsuit accusing Samsung of copying the look and feel of the iPhone when the Korean company created its Galaxy line of phones. In 2016, the Supreme Court reviewed this case and held that the net profit damages for infringing design patents need not be calculated based on the product sold to the consumer. 1. This design patent war was a lesson for a company to seriously include/combine design rights into its copyright/patent. In addition, the United States' fourth proposed factor includes whether "the design is embodied in a component that is manufactured separately from the rest of the product, or if the component can be sold separately." Apple Opening Br. In response, Samsung sued Apple over 3G patents and stated that iPhone such as iPhone 4, iPhone 4S, and iPad 2 infringed its patents. Cir. Id. POOF. The Federal Circuit rejected this theory because "[t]he innards of Samsung's smartphones were not sold separately from their shells as distinct articles of manufacture to ordinary purchasers." 3522 ("Apple Opening Br."). "[B]ecause the patentees could not show what portion of the [damages] was due to the patented design and what portion was due to the unpatented carpet," the U.S. Supreme Court reversed. This explains why the jurys award based on infringement of a design patent was 100X the award based on infringement of a utility patent. The iPhone manufacturer accused Samsung of failing to comply with the order set against it as part of the deal and , May 2012: The US Court of Appeals for the Federal Circuit (CAFC) gave Apple the, June 2012: Following the appeals court ruling, US District Judge Lucy Koh had to reconsider the preparatory sales injunction against Samsungs Galaxy Tab 10.1. The jury in the partial retrial on damages awarded Apple $290,456,793, which the district court upheld over Samsung's second post-trial motion. For the purposes of the instant case, the Court finds that the four factors proposed by the United States best embody the relevant inquiry, and so the Court adopts these four factors as the test for determining the relevant article of manufacture for the purpose of 289. The Court now turns to which party bears the burden to establish the relevant article of manufacture and to prove the total profit on the sale of that article of manufacture. At one point in the trial, an Apple witness showed and passed around to the jury the "major logic board" of a disassembled iPhone 4. In this case - the Samsung Galaxy S21 and iPhone 12. Apple's argument in favor of shifting the burden of persuasion is unconvincing. Don Burton, Inc. v. Aetna Life & Cas. Cir. CONCLUSION Both of the Apple against/compared to/or Samsung lawsuits were a proof that design patent became a center of the modern fight. Samsung raised this issue again in a Rule 50(a) motion for judgment as a matter of law following the close of Apple's case-in-chief. As the smartphone market and the hype around this continues to grow, smartphone leaders fight for greater dominance in this segment of the product. Samsung's ideas about this new item classification and according to Quantity, which describes a phablet as a smart phone with a display that actions between 5 and 6.9 inches wide diagonally, phablet transmission in Southern Korea's smart phone industry has now . See ECF No. The companies showed some willingness to compromise in an effort to avoid going to court: at the California courts suggestion, they cut the number of disputed patents in half. Co. v. Apple Inc., 136 S. Ct. 1453 (2016) (granting certiorari). Dealing with Cultural Barriers in Business Negotiations, Negotiation in Business: Ethics, Bias, and Bargaining in Good Faith, How to Balance Your Own Values in Negotiation. See, e.g., U.S. Patent No. 3-4, pp. However, intellectual property law is already replete with multifactor tests. "In Dobson v. Hartford Carpet Co., the lower courts had awarded the holders of design patents on carpets damages in the amount of 'the entire profit to the [patent holders], per yard, in the manufacture and sale of carpets of the patented designs, and not merely the value which the designs contributed to the carpets.'" Apple is the brainchild of Steve Jobs. This corporation believes "a high quality buying experience with knowledgeable salespersons who can convey the value of the Company's products and services greatly enhances its ability to attract and retain customers" (Apple Inc., 2015). On remand, Samsung sought a new trial on design patent damages on the ground that, in light of the U.S. Supreme Court's interpretation of "article of manufacture" in this case, this Court provided legally erroneous instructions to the jury that prejudiced Samsung. Cir. In Egyptian Goddess, the Federal Circuit clarified that the test for design patent infringement is whether an ordinary observer familiar with the prior art would be deceived by the similarity between the claimed and accused designs. at 434. The U.S. Supreme Court Did Not Foreclose the Possibility that a Multicomponent Product Could be the Relevant Article of Manufacture in Some Cases. Second, Samsung cites to testimony and exhibits that purport to show that Samsung's phones can be separated into various component parts. Hearing Tr. Id. Cannibalization- Why Brands Cannibalize Their Existing Products (With Examples). Sept. 9, 2017), ECF No. Finally, shifting the burden of production is consistent with the Federal Court's en banc decision in the design patent case Egyptian Goddess. Surprisingly, the company was not even in the technology business at its inception in 1938. Id. 1966, 49th Cong. a. . Although a design patent owner may recuperate the infringers total profits, the utility patent owner may recuperate his/her lost profits or a fair royalty. See Jury Instructions at 15-16, Columbia Sportswear N. After the success, they faced good losses in the fall of Apple 3. Samsung Opening Br. at 9 (quoting 17 U.S.C. See Supreme Court Decision, 137 S. Ct. at 434 n.2; Tr. Be it flying, cooking, innovating, and even revolutionizing the whole world with unbelievable technology. See ECF No. This principle is evident from the text of 289 and the dinner plate example discussed above. The defendant also bore the burden of proving deductible expenses. Samsung Opening Br. Second, other courts in design patent cases have assigned the burden on deductible expenses to the defendant. First, there is no indication that Congress intended the defendant to bear the burden of persuasion on identifying the relevant article of manufacture or proving the amount of total profit, see Burstein, supra n.4, at 59-61, and so the default rule is presumed to apply, Schaffer, 546 U.S. at 56. 2842 at 113. Microsoft, on the other hand, is well known US based global organization, settled in . After the succession of third heir Kun-hee, the company saw an opportunity in technology and he invested heavily in semiconductor technologies and transformed Samsung from a manufacturer into a global technology powerhouse. Laborers Pension Tr. ECF No. . Concerned that the Dobson cases weakened design patent law to the point of "'provid[ing] no effectual money recovery for infringement,'" Congress in 1887 enacted the predecessor to 289, which eliminated the "need to apportion the infringer's profits between the patented design and the article bearing the design." This month in San Jose, Calif., the two biggest smartphone companies in the world, Apple and Samsung Electronics, entered into a head-to-head intellectual property rights lawsuit. Yet the two-day mediated talks between the CEOs in late May ended in an impasse, with both sides refusing to back down from their arguments. 2009) ("The burden of proving damages falls on the patentee. In part because Apple and Samsung are also long-time partners. Id. 2002) (unpublished) ("The district court also erred in shifting the burden of proving damages to [defendant] . In sum, the Court finds that the jury instructions given at trial did not accurately reflect the law and that the instructions prejudiced Samsung by precluding the jury from considering whether the relevant article of manufacture for the purpose of 289 was something other than the entire phone. , 136 S. Ct. at 434 n.2 ; Tr Egyptian Goddess ( )! 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