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Friday, March 1, 2013

Judge Slashes Jury Award in Apple-Samsung Case

A federal judge on Friday weakened the blow from Apple’s legal victory in a patent case against Samsung, lopping more than 40 percent off the damages a jury awarded last year.

But the judge’s decision left open the possibility that some of the damages could be restored through a new trial, in a sign that one of the most closely watched legal cases in the technology industry will continue to drag on. She also indicated that Apple is entitled to additional damages for sales of Samsung products that have occurred since the jury’s decision last summer.

In her review of the jury’s decisions, which originally awarded Apple more than $1 billion for patent violations by Samsung in its mobile products, Judge Lucy Koh of the United States District Court in San Jose, Calif., knocked those damages down by 450 million, to $599 million.

None of Judge Koh’s opinion changed the jury’s finding that Samsung violated a series of Apple patents in its smartphone and tablet products. But the judge took issue with the way the jury calculated the damages from the Samsung devices named in the case, more than two dozen in all. In her 27-page opinion, Judge Koh said the jury failed to follow her instructions in calculating damages for a certain class of patents, known as utility patents.

She also decided in Samsung’s favor in a dispute between the two parties over when Apple notified Samsung that it was infringing Apple’s intellectual property. Evidence of such notice dates are important because they help determine how hefty the damages are in a court case, once the party being notified is found guilty of infringement. Judge Koh chided Apple for using an expert in the case who used an “aggressive notice date” â€" meaning, an early one â€" to calculate damages.

“The need for a new tri! al could have been avoided had Apple chosen a more circumspect strategy or provided more evidence to allow the jury or the court to determine the appropriate award for a shorter notice period,” she said in her ruling.

Steve Dowling, a spokesman for Apple, declined to comment. Representatives of Samsung didn’t respond to requests for comment.

Mark A. Lemley, a professor at Stanford Law School, called the judge’s decision “an extremely careful and thorough opinion on a very difficult and interrelated set of issues.”

Mr. Lemley predicted that Samsung would wind up with some reduction in the original $1 billion award, but “almost certainly” less than the $450 million that Judge Koh reduced it by on Friday.

“We’ll need a new trial to figure that out,” he said. “Judge Koh has encouraged both sides to appeal first. That may clarify some questions, but it is unlikely to prevent a new trial, just delay it some.”