Apple v. Samsung, part deux, week two: Money talks...and talks some more

Apple v. Samsung, part deux, week two: Money talks...and talks some more

Summary: Apple wraps up its testimony, fueling hopes that this trial might really wrap up by the end of the month.


It's week two in the second installment of Apple v. Samsung, and this is where the long-haul of the trial really sets in. (At least before we see how long it takes the jury to come up with a verdict, but more on that soon.)

To recall, last week the two mobile tech giants met back up again in court to commence on a redo of their 2012 trial.

As the plaintiff, Apple got the ball rolling with its opening arguments and initial witnesses last week, headlined by appearances from Apple veterans Phil Schiller and Greg Christie.

Surprisingly, it was Christie who remained in tech blog headlines this week following reports he handed in his resignation. Apple subsequently confirmed.

Christie was one of the engineers on the design team members behind the original iPhone, which was released in 2007. He is credited with inventing iOS's "Slide to Unlock" function, among other now-familiar features.

Tech blog 9to5Mac suggested on Wednesday that Christie's departure comes amid a significant internal leadership shuffle after coming at odds against Apple's senior vice president of design, Jonathan Ive.

Nevertheless, Apple said in a statement to CNET that Christie was planning to retire later this year.

That aside, Apple moved proceedings along with more experts, turning the San Jose federal courthouse room into a crash course in advanced mobile programming.

But this being a patent trial involving the two largest smartphone manufacturers in the world represented by the best (or at least most expensive) legal teams in the business, there were still some dramatic elements.

The most eye-catching (or maybe hair-raising) one this week arguably has to do with money, which is really what this trial is all about in the end.

Sure, both sides would likely go on the defensive and attest this is about intellectual property. But when Apple ups the ante against Samsung from $2 billion in damages sought to $2.191 billion (which at that point, who's counting anymore?), any thoughts about artistry go out the window.

Apple sourced that request to an estimate drummed up by Christopher Vellturo, an economist and principal at Quantitative Economic Solutions. Vellturo testified on Tuesday that he reached that figure by calculating estimated royalties as well as lost sales and profits.

Back on the stand on Friday, Vellturo also acknowledged that he is being paid $2.3 million for his work on this case. Parties on both sides of the courtroom often pay boatloads to technical and financial experts. Last week, at least one expert witness for Cupertino admitted under oath he was being paid upwards of $500 per hour for his contribution to the case.

(Meanwhile, the jurors in this trial are receiving just $50 per day.)

However, Vellturo retorted during cross-examination with Samsung's point lawyer, John Quinn, that he is not a "professional witness" for Apple.

Vellturo's testimony took up the bulk of the week's proceedings, but he wasn't the only expert Apple had on deck.

John Hauser, the Kirin professor of marketing at the MIT Sloan School of Management, was called to back up Apple's demand for more than $2 billion.

On Tuesday, Hauser described an extensive survey he undertook, asking hundreds of Samsung tablet and smartphone users to determine how many people were buying select devices for specific features. Eventually he came to the conclusion that fewer consumers would have bought the Samsung devices at question in this lawsuit if certain features were missing.

Samsung attorneys took issue with that methodology, speculating that brand name and operating systems hold more weight for consumers when making purchasing decisions.

Apple wrapped up its case by mid-Friday, leaving the rest of the day to let Samsung get started with its list of witnesses. That was immediately followed by a kerfuffle over a number of motions, summary judgment, and most questions directed at Samsung's first witness, Hiroshi Lockheimer, engineering director for Google's Android team.

Lockheimer's testimony will likely be pick up again next week, but the few points he made on late Friday afternoon are critical.

For starters, Lockheimer recalled how he was “blown away” by initial demos of Android as far back as 2006, predating the release of the iPhone and iOS. He also helped out Samsung's argument that Apple's wrath is misdirected at the manufacturer rather than the company fostering the ecosystem: Google.

Like many of the high-profile intellectual property trials inundating federal courthouses in and around Silicon Valley over the last few years, there is a dedicated pool of tech journalists covering live each day -- many of whom are frequently live-tweeting updates.

If you don't have the time (or patience) to follow along each day, check back here on ZDNet next Friday for another installment recapping the week in Apple v. Samsung, part deux.

Topics: Legal, Apple, Mobility, Patents, Samsung

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  • Apple is scared, very scared.

    • ye is crazy, very crazy.

      NoMore MicrosoftEver
  • Apple isn't innovating

    I looked at the new Iphones at the mall, the Iphone screen is surprisingly tiny compared to a lot of the other Android and Windows phones. Its sad to see Apple going after all the phone makers with lawsuits because the other phone makers are the ones truly innovating. Apple has made the same phone for about 7 years, with only small changes. I think people are totally wasting their money buying Iphones when there are so many amazing phones out there.
    Pollo Pazzo
    • Size is NOT innovation

      Copycats tend to resort to the only thing left to differentiate: make it bigger. Notice how many mobile phones out there look like the iPhone? Notice how Samsung retail outlets look like Apple's? Copycats are always cheaper. It is like buying stolen goods. I will always pay more for the originals. And gladly too. It is, in my opinion, the right thing to do.
      • Competing is NOT copying

        Have you seen Samsung's lineup?

        Now tell me, since when did the iPhone have a Wacom digitizer?

        When was the last time Apple made a rugged flagship phone?

        Which iPhone had split-screen multitasking?

        And you're right, copycats are always cheaper.

        That's why the Galaxy S5 series is more expensive than the iPhone 5S. It's its direct competitor, and Samsung knows it can fight for sales.

        Besides, who needs bigger screens? Clearly, 3.5 inc- oops, I meant 4 inches is the perfect screen size.

        It has nothing to do with preference in size or OS at all. People clearly don't want larger displays, after all. The Galaxy series is clearly selling well because it's a direct rip-off of the iPhone, and Android is clearly an iOS clone.

        Yup, that's the perfect explanation. /s

        (The Galaxy series is not a copy-cat of the iPhone. It's a competitor, clear and simple. And to many, a larger display IS a good thing.)
        • Agreed

          If Apple had their way they would be the only company making a touch screen phone of any type (even though there were many touch screen devices before the iPhone). Stifling competition by resorting to tough guy (see you in court) tactics is pathetic. The tech world is changing all the time and Samsung/HTC and many others are innovating and taking tech to new levels, despite Apple. The list of innovations that do not have Apple involvement is huge.
          • Its the same approach to business that Microsoft uses...

            And Apple always did want to be bigger...
          • ... Seriously?

            This is an Apple v Samsung article.

            What does Microsoft have to do with this?

            Apple did the same thing to Microsoft a while back, suing them for "stealing" the "look and feel" of Mac OS.

            This isn't strange of them (Apple).
          • Seriously Seriously

            This is an Apple v Samsung article.

            What does Microsoft have to do with this?

            Apple did the same thing to Microsoft a while back, suing them for "stealing" the "look and feel" of Mac OS.

            This isn't strange of them (Apple).


            The above is original thoughts and in hindsight, pretty obvious things to say. No way did I copy ForeverCookie.
          • +1

            Not sure whether you're insulting me or not, but you deserve an up-vote for giving me a chuckle.
          • You too!

            For having a sense of humor!
        • Galaxy S5 more expensive?

          Great now after copying Apple's look and feel and packaging, they are now desperately trying to copy their margins.
          • Hyperbole much?

            Desperately? I'm pretty sure Samsung haven't had any profit margin problems for quite some years now.
      • Others are innovating

        Android, and Windows phone makers are absolutely innovating. People who say others are copying Apple are just echoing what Apple is saying. Companies are making bigger phones because people want bigger phones. Companies are putting expandable storage in phones because people need more storage thus don't want to buy a new phone to get more storage (cough, cough Apple). I have seen a lot of the new Samsung phones in person, they bare absolutely no resemblance to Apple's Iphones at all thus Apple is being a total bully of a company. What the hell does Apple have to worry about, they have $190,000,000,000 for heavens sake.
        Pollo Pazzo
      • Copycats

        Do you not know how many features Android had before iOS? Voice search? Notification Bar? Dynamic Wallpaper? Multitasking Preview? iPhone didn't even get 4G until 2 years after the first android phone and now they are coming out with a phablet 2 years after Samsungs first Note. How about the iPhone 5c, just coincidence that they come out with those bright vibrant colors after Nokia started getting popular with their colorful phones?

        You know Apples first lawsuit like this was? Claiming Microsoft "ripped off Lisa" by having a "graphical interface" and have programs "overlap" when in reality if that would have held up Xerox would have won their lawsuit and they had more grounds to stand on.
        Richard Couillard
  • @ ye & ForeverCookie....

    Same old crap from the usual suspects.
  • Apple's a joke

    The amount of features that have been added to iOS over the years that have been found on Android first is enormous but that is how tech advances. If it was up to Apple they would be the only one with a "graphical interface" I mean literally that is what they sued MS for.
    Richard Couillard
  • Poor, poor little persecuted Apple.

    Did you see their company rag article about this? Turns out Apple invented the whole modern world, working in a vacuum yet!