The US Supreme Court backed Samsung in the great battle over the rounded rectangle smartphone.
It threw out an appeals court ruling that the South Korean company had to pay a $399 million penalty to its American rival for copying key iPhone designs.
The 8-0 ruling, written by Justice Sonia Sotomayor, held that a patent violator does not always have to fork over its entire profits from the sales of products using stolen designs, if the designs covered only certain components and not the whole thing.
The justices sent the case back to the US Court of Appeals for the Federal Circuit in Washington to determine how much Samsung must pay. But they did not provide a road map to juries and lower courts on how to navigate similar disputes in the future.
Apple spokesman Josh Rosenstock said in a statement that the U.S. company remained “optimistic that the lower courts will again send a powerful signal that stealing isn’t right”.
Samsung said that the ruling was a “victory for Samsung and for all those who promote creativity, innovation and fair competition in the marketplace”.
For those who came in in late a 2012 jury verdict favoured the tax-dodging cargo cult and hit Samsung initially with nearly $930 million in penalties, later cut by $382 million, for infringing Apple’s iPhone patents and mimicking its distinctive “rounded rectangle” appearance.
Samsung in December 2015 paid its Cupertino, California-based rival $548 million but Samsung took the matter to the Supreme Court, saying it should not have had to make $399 million of that payout for copying the patented designs of the iPhone’s rounded-corner front face, bezel and colourful grid of icons that represent programs and applications.
Apple wanted more cash because Samsung presented no evidence that the article of manufacture in this case was anything less than its entire smartphone as sold. Samsung, meanwhile, said that it did not have to present such evidence as it was bloody obvious.
Samsung argued that it should not have had to turn over all its profits, saying that design elements contributed only marginally to a complex product with thousands of patented features.
The Supremes agreed completely and said that the term “article of manufacture was broad enough to encompass both a product sold to a consumer as well as a component of that product”.
The justices nevertheless refused to devise a test for juries and lower courts to use to discern what a relevant article of manufacture is in a case, a task that could be fraught with difficulty when considering high-tech products.