Apple fires closing shots at Samsung in patents battle

Fri Aug 17, 2012 7:45pm EDT
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By Edwin Chan

SAN JOSE, California (Reuters) - Samsung Electronics Co Ltd abused its "monopoly power" and demanded an unreasonable royalty from Apple Inc for the use of wireless patents in the iPhone, hurting the device's commercial prospects, Apple experts testified.

Richard Donaldson, a former lead patents attorney for Texas Instruments Inc, told the court on Friday a 2.4 percent royalty Samsung wanted on the price of the iPhone was discriminatory because the patents in question enabled just a fraction of the smartphone' s features.

Later, New York University professor Janusz Ordover likened that rate - equivalent to $14 per $600 iPhone - to a "holdup."

"Samsung's conduct distorted the decision making process" in setting standards, said Ordover, a former deputy assistant attorney general for the Justice Department's antitrust division. "It enabled Samsung's technology to be introduced, to become part of the standard. They have acquired holdup power."

Samsung accuses Apple of infringing those patents, which are related to wireless communications for smartphones and are broadly licensed to Intel Corp and other technology corporations. Apple, meanwhile, accuses Samsung of copying the design and some features of its iPad and iPhone.

The former Texas Instruments executive joined a string of rebuttal expert witnesses that Apple presented in court in the closing hours of the U.S. legal battle with its South Korean rival.

Closing arguments and jury deliberations are set to begin next week.

The court battle is a facet of a bigger war for supremacy in the mobile market between the two corporations, which sell more than half the world's smartphones. The mobile market is one of fastest growing and most lucrative in technology sector.   Continued...

Apple attorney Bill Lee is shown questioning Samsung's chief strategy officer Justin Denison (R) in the witness stand, looks on, in this court sketch during a high profile trial between Samsung and Apple in San Jose, California, August 3, 2012. REUTERS/Vicki Behringer