Apple Claims 2 Million Lost Device Sales, Judge Koh Removes Three Samsung Devices From Trial


Apple's trial against Samsung, which resumed today, has hit another milestone Apple rested its case against Samsung today after a somewhat shocking testimony from a financial expert who indicated that the Cupertino manufacturer may have lost up to 2 Million device sales (including both iPhones and iPads) because of Samsung's alleged infringement. This testimony came after last week's revelation that Apple asked Samsung for up to $30 per smartphone and $40 per tablet device for patent licensing.

The report, figured by CPA Terry Musika, relied on three main number sets: how much revenue Samsung brought in with the accused products, royalty fees based on infringed patents, and any profits Apple may have lost to Samsung sales. In total, Musika estimated that Apple may have lost up to $488.8 million in sales alone. Musika did however note that there are some inconsistencies in Samsung's own data and the way income is shifted for tax purposes.

Taking all three number sets into account, Musika estimated damages between $2.5 billion and $2.75 billion. Of course Samsung's team did not sit on its hands when given the chance to cross-examine Attorney Bill Price got Musika to admit that there are various other ways damages could be split up or calculated (as The Verge notes, Apple paid Musika's team about $1.75M to reach the conclusions reported today). Price also noted that in the initial period following the iPhone 4's launch, supply was far outmatched by demand, making it difficult to calculate lost sales because the device's market was not in balance.

After Apple rested its case, Samsung's team asked Judge Lucy Koh (with a brief written statement) to go ahead and grant a judgment for Samsung based on the idea that Apple had failed to prove its case. Of course, Koh denied this request, adding "I never get written briefings on Rule 50. Ever."

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In other Apple v Samsung news, Judge Koh ruled that Samsung's international Galaxy S, Galaxy SII, and Galaxy Ace are to be excluded from the trial, meaning jurors are no longer obligated to decide whether the three devices infringe Apple's patents.

Samsung was granted this after an hour-long argument, in which it posited that Apple hadn't provided a reason why the three devices should be included. After all, Samsung noted, the three products were not available for direct sale in the US by Samsung, and since the current trial is exclusively concerned with devices sold in the US, Apple had the burden of proof in arguing why the devices should be considered in the first place.

While as The Verge rightly notes losing three of around 20 accused devices from the case isn't an enormous blow to Cupertino, it is no doubt a significant gesture.

Source: The Verge (1, 2)

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