Has Apple Bagged Big Punishment for Samsung?
Apple (NASDAQ:AAPL) just upped the ante for Samsung (SSNLF.PK) in a patent infringement case the former filed against the latter with the U.S. International Trade Commission. Not only did the judge ruling in the case recommend a sales ban on potentially infringing products, the Korean company has also been asked to post a bond worth 88 percent of its U.S. mobile phone sales.
What Are the Judgement Details?
ITC Judge Thomas Pender had handed down a preliminary ruling in October that found Samsung infringed on four design patents owned by Apple. If the ITC’s six-member review committee adopts that determination, the products named in the complaint will be subject to a cease-and-desist order prohibiting the sale of commercially significant quantities of infringing products. Samsung may also be looking at other hefty sanctions.
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According to FOSS Patents, Pender’s recommendations included the requirement to post a bond of 88 percent of the value of all Samsung mobile phones sold in the U.S., 32.5 percent of the value of all media players, and 37.6 percent of the value of all tablets.
Samsung had tried pushing for a 4.9 percent royalty rate, but the judge made his decision on the basis of an overweight price differential between the two companies products, as Samsung sells higher volumes of low-priced devices that don’t compete with the iPhone. The judge also suggested that Samsung implement workarounds to overcome the proposed sanctions.
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