Rumor had it that Apple would ask for about $2 billion in lost profits and reasonable royalty from Samsung for infringing five of Apple’s patents having to do with features such as “slide-to-unlock,” universal search, and automatic word correction. Trial observers recently got to hear Apple’s damages expert Christopher A. Vellturo (Quantitative Economic Solutions LLC) testify that the precise amount was $2.19 billion and covered a period from August 2011 through 2013. He arrived at that amount because the market was “very large and Samsung has made a lot of sales into that market.” Also, Samsung’s infringement “came at a time of dramatic growth in the market as many people were buying their first smartphone.” According to Vellturo, the first smartphone purchase was a “key determining factor” in a consumer’s future phone and tablet acquisition. Samsung lagged behind and relied on Apple’s know-how to make its products more competitive, he contended.
Apple’s second expert was John Hauser, a professor at MIT’s Sloan School of Management, who surveyed 966 Samsung users (507 phone owners and 459 tablet owners) to measure how many consumers would buy devices into which Samsung had built the infringing Apple features. He drew on the survey to conclude that consumers would pay between $32 and $102 for the covered features. Samsung countered that consumer demand primarily was driven by brand loyalty, a factor which Apple’s survey admittedly did not consider.
Next it’s Samsung’s turn to present its take on the case.