As Apple vs Samsung approaches conclusion, Samsung argues Apple’s features are worth cents

April 22, 2014
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Samsung Vs Apple Planets collide patent lawsuit

The latest chapter in the Samsung vs Apple war is winding down, as we enter what may be the last week of the trial before things are handed over to the jury.

As you may already know, the current U.S. patent battleĀ primarilyĀ surrounds five patents that Apple says Samsung is guilty of infringing on. Should the jury rule in Appleā€™s favor, the company is seeking as much as $2.19 billion, but Samsung has now brought forth new testimony suggesting that Apple is asking 57 times more than what the patents are really worth.

The testimony comes from Yale University business school professor Judith Chevalier, who says that she has concluded that the value of the patents in question are worth ā€œpenniesā€. Furthermore she says that, if the jury finds Samsung guilty of infringement, Samsung should only have to pay about $1.75 per device sold versus the $40 per device Apple is demanding. This would bring the total damages to just $38.4 million.

Samsung suggests Apple is asking 57 times more than what their patents are worth.

So how exactly did Chevalier reach her conclusion on the patentā€™s values? Citing a study on user purchase behavior, Chevalier noted that more than half of consumers make buying decisions based on reviews from technology websites.

With this in mind, she analyzed 66 professional reviews from 22 ā€œleading media outletsā€ and scanned for mention of features related to the patents in question. She found that 1.07 percent of all sentences had to do with the patents, namely universal search and slide-to-unlock.

She also then pointed to Appleā€™s iOS releases for a bit more confirmation that Apple is overvaluing the patents in question. With each new version of the OS, Apple reveals 100 to 200+ new features and usually marksĀ them down as $10 to $25 per device for deferred revenue. Dividing these numbers up led ChevalierĀ to conclude that most of these features have a value of 5 to 25 cents.

Some might say that her math and methods are far from accurate, but it does seem to illustrate the fact that Apple is asking more than fair value for the five patents in question. Whether the jury buys Chevalier and Samsungā€™s line of thinking remains unseen.

WhatĀ is your take on the situation? Let us know by voting in the poll and sounding off in the comments below!

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