OUR THOUGHTS ON:

Cell Phone Showdown

Business Advisors

By Dan Riske

As elite athletes from around the world battle for the most prestigious recognition in their sports at the Olympics, in London this year, another battle for supremacy is underway, but instead of a sports arena, these players square off on a much different battlefield: the courtroom.

Smartphone giants Samsung and Apple are currently in a heated worldwide battle regarding patent infringements. Samsung has recently overtaken Apple as the world’s largest smartphone manufacturer; however, Apple believes this position was wrongfully acquired. Apple is suing Samsung on claims that its rival cell phone maker copied the design of the iPhone and iPad in its own phones and tablet PCs. Apple believes total damages to be approximately $2.53 billion. Samsung believes that the iPhone and iPad designs were not proprietary and were developed from existing designs by other electronics manufacturers, mainly Sony. Samsung also believes that Apple owes Samsung a 2.4% royalty on the “entire selling price” of Apple’s mobile products that use Samsung’s standards-essential technology. Apple believes the royalty rate should be much lower.

The jury trial began July 30 in San Jose, California before U.S. District Judge Lucy Koh. Judge Koh has already halted sales of Samsung’s Galaxy Tab 10.1 and its Galaxy Nexus phone which gives Apple an early advantage. As the trial unfolds, financial experts will be needed to perform a number of damages calculations to assist both parties. These calculations may include estimations for lost profits, lost value, lost market share, appropriate royalty rates and various other key factors. The experts will likely have to appear in court to testify on behalf of their opinions.

Schneider Downs provides litigation support services, including economic damages calculations and expert witness services, to small and midsize private companies. Contact Joel Rosenthal, shareholder, if you have any questions on how we can help your business. 

© 2012 Schneider Downs. All rights-reserved. All content on this site is property of Schneider Downs unless otherwise noted and should not be used without written permission.

This advice is not intended or written to be used for, and it cannot be used for, the purpose of avoiding any federal tax penalties that may be imposed, or for promoting, marketing or recommending to another person, any tax related matter.

You’ve heard our thoughts… We’d like to hear yours

The Schneider Downs Our Thoughts On blog exists to create a dialogue on issues that are important to organizations and individuals. While we enjoy sharing our ideas and insights, we’re especially interested in what you may have to say. If you have a question or a comment about this article – or any article from the Our Thoughts On blog – we hope you’ll share it with us. After all, a dialogue is an exchange of ideas, and we’d like to hear from you. Email us at contactSD@schneiderdowns.com.

Material discussed is meant for informational purposes only, and it is not to be construed as investment, tax, or legal advice. Please note that individual situations can vary. Therefore, this information should be relied upon when coordinated with individual professional advice.

© 2018 Schneider Downs. All rights-reserved. All content on this site is property of Schneider Downs unless otherwise noted and should not be used without written permission.

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