Court Rules Samsung Copied Apple's iPhone Design, But Reverses Patent Rewards

A federal appeals court has ruled that Samsung illegally copied some of the patented features of Apple's iPhone but it sided with Korean electronics giant, which means that the company will have to pay less than $950 million in damages to Apple.

Samsung used patented designs and two features of the iPhone in older models of its devices. The court ruled that the iPhone's appearance that Apple sought to protect is as much about function as beauty, and isn't eligible for perpetual coverage under U.S. trademark law.

"It appears that the end is near in this case, as the bulk of the damages awarded were on the design patents, which have now been upheld," said Michael Risch, a law professor at Villanova University School of Law in Villanova, Pennsylvania. "If the parties want to call a cease fire, as they have in other jurisdictions, the table is set."

Apple said the dispute is more about reputation than money as statistically, the $548 million equals about two days' worth of iPhone sales.

"We are pleased the Federal Circuit Court of Appeal confirmed Samsung blatantly copied Apple products," Josh Rosenstock, an Apple spokesman, said in a statement.

"Even though Samsung must pay for its widespread infringement of our patents, this case has always been about more than money. It's about innovation and the hard work that goes into inventing products that people love, which is hard to put a price on."

iPhone was introduced in 2007 and in 2011 Apple filed the first suit against Samsung, accusing the Korean handset manufacturer of "slavishly" copying the iPhone.

Samsung argued that the many of the elements claimed were unique were instead natural evolution to make the phones user-friendly.

"With the passage of time, this litigation seems less and less relevant, so the decision could push the parties toward settlement, tilting in Apple's direction," said Michael Carrier, a law professor at Rutgers University in Camden, New Jersey.