Outside U.S District Court in San Jose, Calif., where Apple and Samsung are battling over damages in a retrial.
(Credit: Michelle Meyers/CNET)
SAN JOSE, Calif. -- A Samsung expert on Friday made his case for why the Korean giant should pay Apple only $52 million in damages, saying there's no evidence that anyone has bought Samsung devices because of a particular patented Apple technology.
An expert hired by Apple had determined the company was due $114 million in lost profits because of Samsung's use of technology under Apple's patent No. 7,844,915, also known as "pinch to zoom." The '915 patent covers technology that can distinguish whether a user is scrolling with one finger versus using several touch points at once for a pinch-to-zoom action.
However, Michael Wagner, an accountant and lawyer hired by Samsung, said there's no evidence from either company that shows consumers bought Samsung devices because they liked that particular touch-screen feature. As a result, he believes Apple should receive no money for lost profits.
"I believe people bought these phones for other features," Wagner said. That includes bigger, AMOLED screens; faster processors; and 4G LTE.
The comments come on the fourth day of a retrial for damages that Samsung owes Apple for infringing on five of its patents. A judge in March vacated about $450 million of an original award. Samsung is still on the hook for $600 million, no matter what happens in the retrial.
Wagner spent his time on the stand Friday disputing calculations made by Apple's expert accountant, Julie Davis. In particular, he said that she didn't correctly determine Samsung's profits from the infringing devices and she attached too much value to Apple's lost profits stemming from Samsung's use of a touch-screen technology patent.
The two companies are battling over how much more Samsung owes Apple for infringing on five of its patents. Apple -- using Davis' calculations -- says Samsung owes it $380 million. Samsung says it should pay $52 million.
A big part of the discrepancy comes from differing views on how much Apple lost in profits and how much it should be due for royalties.
One expert, MIT professor John Hauser, estimated three Apple patents, including the '915 patent, adds about $100 in value to a $199 smartphone or $90 in value to a $499 tablet. Davis said Apple lost out on $114 million in profits because of the Samsung copycat devices. She also calculated Samsung's profits to be $231 million, and said reasonable royalties owed to Apple total $35 million. Apple estimates it would have sold 360,000 devices if Samsung hadn't released infringing rivals.
Samsung, meanwhile, said Apple shouldn't receive any money for lost profits, $52.7 million for Samsung's profits, and royalties of only $28,452 because the patents have limitations.
Wagner on Friday said Davis should have deducted operating expenses for marketing, R&D, and other items from her calculation of Samsung's profit from the infringing devices.
"Davis calculated not a penny of these operating expenses, which I believe are a necessary expense," Wagner said. "You can't sell a phone without incurring those types of costs."
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