Samsung vs Apple: Samsung Gets Favorable Supreme Court Ruling Over iPhone Company On Patent Case

By Jas Nieva - 08 Dec '16 01:10AM
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Voting 8-0, the U.S. Supreme Court ruled that there was no need for Samsung to hand over its profits related to the sale of products that infringed on Apple. While this infringement case is far from over, many are saying that it will allow the Korean electronics company some breathing room. There are also those who say that this decision may embolden those who make knock-offs.

It was in 2011 when Apple first brought the case against Samsung alleging that the latter infringed on the designs of products. In particular, Apple focused on alleged violations on three design patents. By 2012, a jury sided with Apple awarding it damages worth at least $1 billion.

While the amount against Samsung does seem high, this was later lowered to around $540 million and later to the amount being currently disputed. The amount though is not what is really at the heart of the matter but more on the interpretation of the law. This particular federal law states that should a company be found guilty of patent infringement on the design of another company's, in this case Apple, "article of manufacture", the former is accountable to the total profits.

A federal law says that companies found liable for infringing design patents on an "article of manufacture" are liable for their total profits. Apple had argued that the design of the product cannot be separated from the actual product. Samsung countered that this was excessive and "absurd" with even the Appellate Court agreeing on it.

Penned by Justice Sonia Sotomayor, the ruling said that "article of manufacture" can refer to an entire product or the components. The decision though did not answer what was applicable in Apple's case against Samsung. It appears that what the ruling says it that the Federal Circuit was incorrect in applying the rule.

In a report by TechCrunch, Apple said it continues to be optimistic and will protect the results of their hard work. Samsung, in the same report, commented that the decision is a victory for everyone especially those who support innovation and creativity. The case is not yet over as the lower court has been tasked to reevaluate the amount of the damages.

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