Samsung Electronics Co., Ltd. v. Apple Inc.

137 S.Ct. 429 (2016)

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Nature of the Case

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Facts

P secured many design patents in connection with the release of the first iPhone. The '677 patent, covered a black rectangular front face with rounded corners, the '087 patent, covered a rectangular front face with rounded corners and a raised rim, and the '305 patent, covered a grid of 16 colorful icons on a black screen. After P released its iPhone, D released a series of smartphones that resembled the iPhone. P sued D alleging infringement. A jury found that several D smartphones did infringe those patents. P was awarded $399 million in damages which was the entire profit D made from its sales of the infringing smartphones. The Federal Circuit affirmed. It rejected D’s argument “that the profits awarded should have been limited to the infringing ‘article of manufacture’”-for example, the screen or case of the smartphone-“not the entire infringing product”-the smartphone. The court reasoned that the innards were not sold separately from their shells as distinct articles of manufacture to ordinary purchasers. The Supreme Court granted certiorari.