Apple outlined for the first time on Friday how it came up with the $2.2 billion in damages that it wants a California jury to award it for Samsung’s alleged “massive infringement” of five Apple patents.

Around a quarter of it, some $507 million, is to compensate Apple for the profits it lost as a result of Samsung’s infringement, said Chris Vellturo, an economist at Quantitative Economic Solutions who is one of Apple’s expert witnesses in the case.

A further $560 million would be compensation for the reduced demand for Apple’s products, and the largest portion — $1.12 billion — is for the royalties Apple says Samsung would have had to pay if it had licensed the patents.

The calculations were disclosed as the trial reached the end of its second week at the federal court in San Jose, California.

Vellturo arrived at the royalty figure by imagining a “hypothetical negotiation” between the two companies. That doesn’t sound very scientific, but it’s been a common method for estimating patent damages ever since a 1970 lawsuit between Georgia Pacific and U.S. Plywood.

Because no actual negotiation took place, the jury gets to consider what royalties would have been decided if the two sides had actually talked, taking into account factors like the usefulness of the patent and the impact a license would have had on their competitive positions.

Read the Full Article: Source –Computer World
http://www.computerworld.com/s/article/9247646/Apple_and_Samsung_spar_over_2.2B_damages_claim

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