Samsung logo

Samsung says Apple has overstated damages in patent case

Apple has overstated Samsung's profit margins for mobile products, a financial expert has said during the patent trial.

Michael Wagner, an accountant who testified this week for Samsung, said Samsung's US profits from the smartphones and tablets targeted in the case should be calculated at about 12 per cent, or about $519m.

Earlier in the trial, an Apple expert witness testified the US margin was closer to 35.5 per cent.

Additionally, two other Samsung financial experts contended that Apple should owe up to $421.8m for violating a clutch of the South Korean company's patents.

Apple and Samsung are going toe-to-toe in a patents dispute that mirrors a bigger struggle for industry supremacy between the rivals that control more than half of worldwide smartphone sales.

Apple accuses Samsung of copying the design and some features of its iPad and iPhone, and is asking for a sales ban in addition to monetary damages.

South Korea's Samsung, which is trying to expand in the US, says Apple infringed several patents including some for its key wireless technology.

Earlier this week, Apple expert Terry Musika said Samsung earned 35.5 per cent margins from mid-2010 through March 2012 on $8.16bn in US revenue.

Apple is seeking over $2.5bn in damages.

However, Wagner testified this week that Musika did not take into account many of Samsung's costs, including marketing. "Not a penny," Wagner said.

Wagner said his 12 per cent figure assumes a period beginning in April 2011 for most of the mobile products.

The trial, now in its third week, is drawing towards a close.

US District Judge Lucy Koh had given each side 25 hours to present evidence.

Samsung began feeling the crunch this week, with its attorneys deciding not to cross examine two of Apple's technical experts at all, citing time limitations.

More financial details about the famously secretive Apple were revealed this week.

The company has paid about $1.4bn in patent royalties to at least 90 companies, according to testimony from Samsung financial expert Vince O'Brien.

Apple has sold $12.23bn worth of iPhones in the US since September 2010, and US sales for the iPad are at $2.29bn since the end of April 2011, Samsung financial expert David Teece said.

Other testimonies this week focused on how much Apple should pay if the jury finds that Apple violated Samsung's patents.

O'Brien said a reasonable royalty for three of Samsung's feature patents – including one for seamlessly emailing a photo – was $22.8m.

Asked why the amount was so small, O'Brien said: "They're one of many features on the phone."

Yet Teece said Samsung's wireless patents in the case were worth up to $399m.

Under questioning from Apple, Teece acknowledged that he had not seen any evidence that Samsung had ever received money for those patents from another company.

Recent articles

Info Message

Our sites use cookies to support some functionality, and to collect anonymous user data.

Learn more about IET cookies and how to control them