How it all began
Starting with the spring of 2011, Apple began litigating against Samsung in patent infringement suits that started a series of ongoing lawsuits between the two companies, regarding smartphone and tablet designs. Apple has also been fighting patent wars with other companies, but by the end of 2011, the biggest smartphone producers at the time (Apple and Samsung) had approximately 19 ongoing cases between them, in 10 different countries. In 2012 the number of lawsuits between the two companies almost tripled. The total value of the damage claims reached billions of dollars. While Samsung won rulings in other countries, most rulings in the U.S. favored Apple.
One of the first important lawsuits actually began because of the Android operating systems – therefore somewhat related to Google. Steve Jobs had expressed publicly his frustration regarding Google’s violation of function and design patents toward Apple’s iOS – rather revolutionary at that time. Because Google gave away Android for free, Apple turned their legal firepower toward Samsung, since their smartphones used Android. Samsung’s rapid sale volume increase may have helped with the decision as well, because Android devices were starting to take big bites out of the Apple market share.
Right about now, Tim Cook is probably finally exhaling relieved. Apple sales brake new records almost every quarter, while Samsung’s products are starting to lose popularity. The icing on the cake: after losing several appeals, Samsung agreed (ordered by courts) to pay the $548 million to Apple. According to the court filling, if Apple delivers the invoice on time (December 4), the company could have the Samsung money in 10 days, therefore by December 14. The filling also follows the latest updates in the case.
Status excerpts from the filling
Enforcement of partial final judgment and costs – Apple’s statement:
After the Court entered partial judgment in Apple’s favor of $548,176,477 on September 18, 2015, Samsung appealed on September 21. Samsung’s appeal was docketed on September 30. The same day, Apple filed a motion for summary affirmance. The Federal Circuit granted Apple’s motion and summarily affirmed this Court’s partial final judgment two weeks later, on October 13. Samsung filed a petition for rehearing en banc, which the court denied on November 19. The mandate issued on November 30, 2015. Samsung’s motion for approval of a supersedeas bond and temporary stay pending appeal (Dkt. 3294) is therefore moot. Apple’s motions to enforce surety liability with respect to the $548 million partial judgment and $1.8 million costs judgment remain pending, as well as Samsung’s parallel motion to vacate the Court’s costs judgment, all of which are set for hearing the same day as the case management conference.
Samsung has confirmed to Apple that it will pay Apple the $548 million partial judgment directly. Samsung indicates that payment should be complete within 10 days of delivery of Apple’s invoice to Samsung, which will take place on December 4. Payment should therefore be complete by Monday, December 14. Once payment is received, Apple will withdraw the motion to enforce with respect to the partial judgment. If Apple has not withdrawn the motion by Wednesday, December 16, Apple requests that the Court grant the motion to enforce, as no substantive opposition has been filed. Apple notes that Samsung purports to reserve rights to obtain partial reimbursement in the future of judgment amounts it has paid. Apple disputes Samsung’s asserted rights to reimbursement.
Samsung has indicated that it does not intend to pay Apple the $1.8 million costs judgment. For the reasons stated in Apple’s briefing, the Court should grant Apple’s motion to enforce with respect to costs. (E.g., Dkt. 3306.)
Enforcement of partial final judgment and costs – Samsung’s statement:
With respect to the partial judgment, Samsung has made arrangements to complete payment to Apple. Samsung informed Apple that it intends to make the payment 10 days after receipt of the original invoice from Apple, which has not yet taken place. Samsung has told Apple that it will make the payment by December 14 if Apple delivers the original invoice to Samsung no later than December 4 KST. Samsung is paying the full amount of the judgment at this time without deducting withholding taxes. Samsung acknowledges that an involuntary obligation to pay arises from the issuance of the Federal Circuit’s mandate and expiration of the stay of execution. Nonetheless, Samsung continues to reserve all rights to obtain reimbursement from Apple and/or payment by Apple of all amounts required to be paid as taxes. Samsung requests that the Court release its supersedeas bond (Dkt. 3036) as soon as the judgment is paid. Samsung further reserves all rights to reclaim or obtain reimbursement of any judgment amounts paid by Samsung to any entity in the event the partial judgment is reversed, modified, vacated or set aside on appeal or otherwise, including as a result of any proceedings before the USPTO addressing the patents at issue or as a result of any petition for writ of certiorari filed with the Supreme Court. Samsung notes that the Patent Trial and Appeal Board has issued a final decision of invalidity on the ’915 Patent, and Apple filed a notice of appeal to the Federal Circuit in the USPTO last week. The appeal has not been docketed at the time of this filing.
Motions for costs have been set for hearing during the December 10 Case Management Conference. As explained in Samsung’s motion, because the Federal Circuit did not discuss costs in its opinion partially reversing the judgment, the costs award was vacated automatically. Controlling Ninth Circuit precedent establishes a default rule that “[w]here a reviewing court reverses a district court’s judgment for the prevailing party . . . both the underlying judgment and the taxation of costs undertaken pursuant to that judgment are reversed.”
The bottom line
After several years, Samsung lost one important battle in the patent war that Apple has been fighting with other tech giants. If we think about it, by the time some of these lawsuits end, the company that is being litigated will most likely drag the lawsuit over the span of many years, and reduce the initial claim by a considerable sum – almost by 50 percent in the case mentioned above. In the end, the effort might be worth it even for the company who ends up writing the check.
