Apple-Samsung patent trial turns to question of damages

The patent-infringement trial between Apple (NASDAQ:AAPL) and Samsung Electronics has entered a new phase, with both sides now arguing over how much damages or royalties the other side would be liable for.

Samsung, which has been arguing its case against Apple this week, concluded is arguments on Thursday. Now the trial is turning to a question of money--and how much each company would owe should it lose. Meanwhile, U.S. District Judge Lucy Koh, who has been overseeing the trial, has urged both sides to try to reach some kind of settlement before the trial goes to the jury for a verdict.

Apple contends Samsung is liable for at least $2.5 billion in damages because its devices infringe on Apple's design and utility patents for the iPhone and iPad. However, Michael Wagner, an accountant who testified on Thursday for Samsung, said that figure relies on faulty assumptions of Samsung's profit. He said Samsung's profit from the devices Apple has said infringe on its patents should be $519 million. Samsung also said Apple should owe it $421.8 million in royalties for violating Samsung's patents.

Koh, who has at times been exasperated to the point of suggesting that the lawyers for both sides may be "smoking crack," urged both sides to narrow their legal cases against each other. "I'm also hoping there can be some horse trading going on," Koh said. "Now is the time."

Earlier in the week she told both sides they should try and meet for a settlement--something that failed prior to the start of the trial. "I see risk here for both sides if we go to a verdict," Koh said on Wednesday, according to AllThingsD. She said that if Apple and Samsung were trying to prove that they have intellectual property positions for tablets and smartphones, then "message delivered."

In making its case, Samsung argued, in one instance, that Apple's patent for a "bounce-back" scrolling display on its devices should be considered invalid. Samsung also argued it did not copy Apple's design for icons on its Galaxy phones. Samsung has accused Apple of infringing on its standards-essential wireless patents. Closing arguments are expected on Tuesday.

For more:
- see this WSJ article (sub. req.)
- see this Bloomberg article
- see this Reuters article
- see this AllThingsD article
- see this separate AllThingsD article

Related Articles:
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Apple offered to license its patents to Samsung - for $30 per smartphone
Samsung's U.S. tablet sales barely dent Apple's iPad dominance
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