Out-innovate or copy, that’s the option of Samsung Electronics (Korea SE:005930) when Steve Jobs released iPhone to consumers in 2007. Samsung chose to copy Apple Inc. (NASDAQ:AAPL)’s technology said Attorney McEhinny, legal counsel for Apple, in his opening statement, during the patent hearing involving the two companies on Tuesday.
McEhinny said to the jury, Samsung “copied the entire design and user experience” integrated in Apple’s iPhone and iPad. He emphasized that Samsung’s smartphones and tablets are illegal and cheap copies of Apple’s highly acclaimed products.
Based on the documents filed by Apple Inc. (NASDAQ:AAPL) in the court, the company alleged that Samsung infringed several of its patents and trademarks, including the touch-to scroll, pinch-to-zoom, and the twist-to-rotate, tap-to-zoom features. Apple requested the court to order the South Korean company to pay $2.5 billion in damages, and to pull out its products from the market.
Samsung denied the allegations, calling Apple’s demand for damages an “absurd windfall.” The South Korean company accused Apple of blocking competition, and limiting consumer choices. Samsung further argued, Apple is a new player in the mobile market, compared to its 20-years of development and research in the industry. Samsung pointed out that Apple is using its technology without paying any cross-licensing fee.
During the hearing Apple’s second lawyer, Atty. Bill Lee, discussed Samsung’s counter allegations. Atty. Lee explained that the Samsung patents in question are standards-essential patents, meaning the technology is the same and works the same everywhere. He also argued Samsung did not disclose its intellectual property rights and patent technology to the standard body.
Furthermore, Lee said it is Samsung’s responsibility to license any of its standards-essential patents based on a fair, reasonable and non-discriminatory basis. He pointed out that Samsung wants Apple Inc. (NASDAQ:AAPL)to pay a $12 cross-licensing fee on the chip that only costs $10. He said, “That’s not fair, that’s not reasonable and that’s not non-discriminatory.” According to him, Samsung’s patent is unenforceable.
The Samsung-Apple patent infringement hearing is expected to last for at least one month. United States District Judge Lucy Koh gave both parties 25 hours each to present their arguments, evidences, and witnesses, as well as the opportunity to show 125 exhibits.
Yesterday, Judge Koh spent hours in evaluating the backgrounds and biases of the jurors summoned by the court. The jury is composed of ten individuals.
Meanwhile, based on the latest research published by IDC, Samsung surpassed Apple in global mobile phone shipment during the second quarter. Samsung has a 32.6 market share percentage compared with Apple’s 16.9 percent.