SAN JOSE, Calif. — Samsung should pay damages of $2.191 billion, according to an Apple expert. The Korean giant is still shipping phones that infringe at least one Apple patent, he added, suggesting willful infringement that carries a possibility for triple damages.
Separately, another expert showed a survey concluding consumers would pay from $44 to $102 for access to some of the patented Apple features.
Economist Christopher Vellturo laid out much of Apple's case against Samsung in testimony here Tuesday afternoon. Samsung attorneys will get a chance to cross examine him on Friday.
Vellturo's firm, Quantitative Economic Solutions LLC, built a database of sales of infringing phones, based on access to Samsung's financial records. He showed the eight-person jury confidential details of estimated revenues and profits from those phones. Samsung shipped more than 37 million accused devices, an infringement he called "massive."
Samsung's 10% share of the smartphone market in 2007, when Apple launched the iPhone, declined to a low of 5% by late 2009, according to a chart Apple showed from International Data Corp. As the infringing phones came on the market in late 2010, it then rapidly rose to nearly 35% in mid-2012 where it remains today, according to IDC.
Apple accuses Samsung of infringing five patents in nine smartphones and one tablet. Six of the phones were launched between August and November 2011, and the other devices followed in 2012. The IDC figures show Samsung's market share rising rapidly starting in early 2010, before the first infringing phones hit the market.
"The iPhone fundamentally changed the market, shifting power from hardware to software... creating huge challenges for Samsung because historically they were strong in hardware," said Vellturo. "A central aspect was improving the UI, and these patents were an important part of the strategy Samsung used to get into a two-horse race with Apple and stay there."
"This happened while many people were buying their first smartphones -- that first smartphone purchase is so important," because it influences future purchases, noted Vellturo, who holds a doctorate in economics from MIT.
Apple has paid Vellturo about $560,000 to date, based on 800 hours of work at $700 an hour. In addition, Apple paid his staff an unspecified amount. "There was a lot of data to keep track of... it was a big undertaking," he said.
Next page: Reading Samsung's documents