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

New testimony brought forth on Samsung's behalf suggests Apple is asking significantly more for its patents than what they are really worth.
April 22, 2014
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 battle primarily surrounds five patents that Apple says Samsung is guilty of infringing on. Should the jury rule in Apple’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 “pennies”. 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 patent’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 “leading media outlets” 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 Apple’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 marks them down as $10 to $25 per device for deferred revenue. Dividing these numbers up led Chevalier 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 Samsung’s line of thinking remains unseen.

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