SAN JOSE: A federal court jury on Thursday ordered Samsung to pay Apple $533 million for copying iPhone design features in a patent case dating back seven years.
Jurors tacked on an additional $5 million in damages for a pair of patented functions. The award appeared to be a bit of a victory for Apple, which had argued in court that design was essential to the iPhone.
The case was keenly watched as a precedent for whether design is so important that it could actually be considered the “article of design” even in a product as complex as a smartphone.
“We don’t think it is supported by the evidence,” Samsung attorney John Quinn told US District Court Judge Lucy Koh after the verdict was read in her courtroom in Silicon Valley.
“We have every concern about the determinations about the article of manufacture.”
Quinn declined an offer by the judge to send jurors back for further deliberation, saying Samsung would pursue post-trial motions to address its concerns about the verdict.
Juror Christine Calderon said the panel agreed that one of the design patents — the grid of colored icons — did represent the whole phone, while the other two at issue in the trial were seen as the display assembly that gave the iPhone its look.
She compared it to the Mona Lisa: “you use the paint, but it is not the article of manufacture.”
“I had to really think about it,” the 26-year-old Calderon, a technical writer, said after Koh dismissed the jury.
“We kind of felt like we ended up at a happy medium.”
$400 million damage award
The case had been sent back to the district court following a Supreme Court decision to revisit an earlier $400 million damage award.
Apple reasoned in court that design was so integral to the iPhone that it was the “article of manufacture” and worth all the money Samsung made by copying the features.
The lower figure sought by the South Korean consumer electronics titan would have involved treating the design features as components.
The jury had been asked to determine whether design features at issue in the case are worth all profit made from Samsung smartphones that copied them — or whether those features are worth just a fraction because they are components.
Apple argued in court that the iPhone was a “bet-the-company” project at Apple and that design is as much the “article of manufacture” as the device itself.
The three design patents in the case apply to the shape of the iPhone’s black screen with rounded edges and a bezel, and the rows of colorful icons displayed.
Samsung no longer sells the smartphone models at issue in the case.
Two utility patents also involved apply to “bounce-back” and “tap-to-zoom” functions.
An original trial finding that Samsung violated Apple patents preceded a lengthy appellate dueling over whether design features such as rounded edges are worth all the money made from a phone.
Forfeiture of all profits
Samsung challenged the legal precedent that requires the forfeiture of all profits from a product, even if only a single design patent has been infringed.
The US Supreme Court in 2016 overturned the penalty imposed on the South Korean consumer electronics giant.
Justices ruled that Samsung should not be required to forfeit the entire profits from its smartphones for infringement on design components, sending the case back to a lower court.
“Today’s decision flies in the face of a unanimous Supreme Court ruling in favor of Samsung on the scope of design patent damages,” the South Korean company said in response to an AFP inquiry.
“We will consider all options to obtain an outcome that does not hinder creativity and fair competition for all companies and consumers.”
Apple did not respond to a request for comment.
The key question of the value of design patents rallied Samsung supporters in the tech sector, and Apple backers in the creative and design communities.
Samsung won the backing of major Silicon Valley and other IT sector giants, including Google, Facebook, Dell and Hewlett-Packard, claiming a strict ruling on design infringement could lead to a surge in litigation.
Apple was supported by big names in fashion and manufacturing. Design professionals, researchers and academics, citing precedents like Coca-Cola’s iconic soda bottle.
The case is one element of a $548 million penalty — knocked down from an original $1 billion jury award — Samsung was ordered to pay for copying iPhone patents.
Jury tells Samsung to pay big for copying iPhone design
Jury tells Samsung to pay big for copying iPhone design
Saudi Arabia to reveal $100bn in investment opportunities at aviation forum
- Minister for Transport and Logistics Services Saleh-Al-Jasser: Saudi Arabia is presenting aviation investment opportunities that are unmatched globally
- Minister for Investment Khalid Al-Falih: Aviation is a key investment sector and enabler of the Kingdom’s broader economic transformation
RIYADH: The world’s largest aviation investors will descend on Riyadh later this month for the Future Aviation Forum, where Saudi Arabia will unveil more than $100 billion in investment opportunities to enable its ambitious Saudi Aviation Strategy.
The forum’s investment showcase will highlight projects and incentives to attract investment into the Kingdom’s booming aviation sector, including airports, airlines, ground services, cargo and logistics.
In the $100 billion in investment opportunities, airports account for more than $50 billion, new aircraft orders about $40 billion, while the remaining $10 billion is earmarked for other projects, including $5 billion in special logistics areas around the main airports in Riyadh, Jeddah, and Dammam.
Minister for Transport and Logistics Services Saleh-Al-Jasser, who will open FAF24, said: “Saudi Arabia is presenting aviation investment opportunities that are unmatched globally, as the Saudi Aviation Strategy triples passenger numbers, connects to more than 250 destinations and handles 330 million passengers and 4.5 million tonnes of cargo by 2030.”
Minister for Investment Khalid Al-Falih, who will open the investment showcase, added: “Saudi Arabia is the world’s new investment hub, targeting $3.3 trillion in investment by 2030. Aviation is a key investment sector and enabler of the Kingdom’s broader economic transformation. The aviation investment showcase will provide investors with unparalleled access to participate in the Kingdom’s transformation.”
The showcase will include investor briefings, meetings and panels on major projects including the six-runway King Salman International Airport in Riyadh and public private partnerships for Abha, Taif, Hail and Qassim international airports. The showcase will also feature opportunities in cargo and logistics, advanced air mobility and business aviation. Aviation suppliers will be briefed on expansion plans for new airline Riyadh Air, as well as leading regional airlines including Saudia, Flynas and Flyadeal.
Global executives from Boeing, Airbus, Commercial Aircraft Corporation of China, and Embraer will attend the event, alongside investors and representatives from airlines, airports, cargo, logistics and aviation services companies. Speakers include Saudi ministers as well as Saudi and global aviation and investment CEOs.
The Future Aviation Forum runs from May 20-22 in Riyadh. For more information, visit www.futureaviationforum.com
NEOM to build Jaumur marina on the Gulf of Aqaba
- Jaumur will be an exclusive residential community planned around an inspiring marina for more than 6,000 residents
- The marina promenade will be a place alive with entertainment, leisure and cultural experiences, hosting year-round arts events and performance programs
RIYADH: NEOM has announced that it will build a new marina and community on the Gulf of Aqaba called Jaumur.
The board of directors of NEOM said that Jaumur will be designed to serve the highest standards of future livability and active lifestyle. The new addition promises a unique blend of experiences on land and sea, complementing NEOM’s evolving regional development in northwest Saudi Arabia.
Jaumur will be an exclusive residential community planned around an inspiring marina for more than 6,000 residents. Embedded into the varied topography of the Gulf of Aqaba coast, it will feature 500 marina apartments and nearly 700 luxury villas, offering waterfront access and private mooring. Two distinctive destination hotels in Jaumur will offer 350 luxurious rooms and suites, inviting guests to enjoy the breathtaking views and embrace all aspects of modern coastal hospitality and sporting activities.
The marina will be the focal point of the development, the beating heart around which the community of Jaumur will thrive. A 1.5 km aerofoil rises above the largest of the yacht berths, providing year-round protection for yacht owners and a haven for the marina’s residents and guests. The aerofoil incorporates a gravity-defying cantilever to form a stunning entrance to the marina, welcoming the world’s largest superyachts.
The marina promenade will be a place alive with entertainment, leisure and cultural experiences, hosting year-round arts events and performance programs, complemented by signature retail outlets and world-class dining options.
Jaumur’s commitment to innovation and learning is embodied in the development’s state-of-the-art deep-sea research center and top-tier international boarding school. The research institute is dedicated to deep-sea exploration, welcoming established experts and ambitious pioneers to champion marine discovery, knowledge and conservation and establish NEOM as a world-leading center for oceanographic research.
The international boarding school will prepare students for global achievement through an exclusive and progressive education delivered by a diverse international faculty of experts and innovators.
Jaumur’s unique architectural design integrates water where golden sands meet the deep blue of the Gulf of Aqaba. It is a luxury destination to visit, explore, live and prosper: an opportunity to become part of a dynamic community.
Jaumur follows the recent announcements of Leyja, Epicon, Siranna, Utamo, Norlana, Aquellum, Zardun, Xaynor, Elanan, Gidori and Treyam as sustainable tourism destinations on the Gulf of Aqaba, all woven together by NEOM’s commitment to sustainable progress.
Closing Bell: TASI edges up to close at 12,460 points
RIYADH: Saudi Arabia’s Tadawul All Share Index climbed on Wednesday, gaining 102.12 points, or 0.83 percent, to close at 12,460.11.
The total trading turnover of the benchmark index was SR8.189 billion ($2.18 billion), as 138 of the listed stocks advanced while 81 retreated.
Similarly, the MSCI Tadawul Index increased by 9.75 points, or 0.63 percent, to close at 1,557.46.
The Kingdom’s parallel market Nomu also climbed by 144.95 points, or 0.54 percent, to close at 26,886.59. This comes as 32 of the listed stocks advanced while as many as 35 retreated.
The best-performing stock of the day was Acwa Power Co., whose share price surged by 9.7 percent to SR438.80.
Other top performers include Alkhaleej Training and Education Co. and the Mediterranean and Gulf Insurance and Reinsurance Co., whose share prices soared 8.92 percent and 8.09 percent to SR37.25 and SR34.75, respectively.
Additional top performers include Al-Baha Investment and Development Co. and Malath Cooperative Insurance Co.
The worst performer was Nahdi Medical Co., whose share price dropped by 2.48 percent to SR133.60.
Other poor performers were the Co. for Cooperative Insurance as well as Jabal Omar Development Co., whose share prices dropped by 2.42 percent and 2.32 percent to stand at SR161 and SR27.40, respectively.
Additional poor performers include United Cooperative Assurance Co. and AlSaif Stores for Development and Investment Co.
On the announcements front, Al Rajhi Bank announced its intention to issue US-denominated additional tier-1 capital sukuk under its international additional tier-1 capital sukuk program established on April 18 following the board of directors’ decision on March 25.
The bank informed Tadawul that the value and terms of the sukuk offering would be decided based on current market conditions.
The sukuk will be issued through a special-purpose vehicle and will be accessible to qualified investors, both domestically and internationally.
The bank appointed Al Rajhi Capital, Citigroup Global Markets Ltd, Dubai Islamic Bank, and Emirates NBD, as well as Goldman Sachs International, HSBC, and Standard Chartered Bank, as joint lead managers and bookrunners for the potential offering.
Nahdi Medical Co. announced its results for interim financial results for the period ending on March 31, with revenues surging by 7.24 percent to reach SR2.257 billion, compared to SR2.105 billion in 2023.
The increase was primarily driven by a strong performance in the core pharma segment and a solid recovery in front shop segment led by the beauty categories.
However, the company’s net profits decreased in the first quarter of this year to SR232.9 million, marking a 4.67 percent decline compared to the same quarter in 2023.
Saudi Telecom Co. also announced its financial results for the same period with earnings increasing 5.07 percent compared to the same quarter last year, reaching SR19.1 billion.
Saudi Real Estate Co. also announced its financial results for the same period, with revenues surging by 8.8 percent to reach SR427.6 million, compared to SR393 million in 2023.
The revenue growth was mainly attributed to the increase in stc Saudi Arabia earnings by 1.2 percent, driven by the rise in commercial unit revenues by 6.7 percent and carriers and wholesale unit incomes by 5.7 percent, which offset the decline in business unit revenues.
Furthermore, stc’s subsidiaries’ gains also increased by 13 percent.
Halwani Bros. Co.’s earnings increased by 5.93 percent to SR270.36 billion compared to SR255.22 billion in its interim financial results, which ended March 31.
The reason for the increase in sales during the current quarter compared to the same period of the previous year is due to a rise in the company’s transactions in the Kingdom and its subsidiary in Egypt.
Saudi Arabia achieves highest evaluation level in UN’s Competition Law Systems Report
RIYADH: Saudi Arabia has received global recognition from a UN commission for its robust legal framework and “very strong” competition law.
The Kingdom attained the highest evaluation level in the Competition Law Systems Report for 2023, issued by the UN Economic and Social Commission for Western Asia, surpassing the “developed” level achieved in 2020, according to the Saudi Press Agency.
The Competition Law Index measures the strictness of regulations and is categorized according to the maturity of eight key criteria.
The Kingdom achieved a perfect score of seven in the index concerning regulatory frameworks for economic concentration operations.
Saad Al-Masoud, the spokesperson for the General Authority for Competition, affirmed that this advancement reflects the support GAC receives from the wise leadership to achieve the goals of Vision 2030 programs.
He added that these objectives aim to improve a sustainable business atmosphere, foster economic growth, and advance consumer welfare.
Al-Masoud further noted that this achievement is the result of significant developments in several areas, including laws combating monopolistic practices and anti-competitive agreements, as well as his authority’s efforts to review economic concentrations.
He also said that several additional factors have contributed to upholding the competitive landscape of the business sector, ensuring fairness, transparency, and adherence to reasonable competition regulations.
An initial competition system was established in Saudi Arabia in 2004, and in October 2017 the Kingdom’s Council of Ministers endorsed the change of the name to the GAC and a new organizational structure.
The authority was also made a financially and administratively independent entity, and in March 2019, another royal decree was issued approving the updated competition system.
Since its inception 20 years ago, GAC has imposed fines totaling nearly SR1 billion ($270 million) on around 252 companies found to be violating its regulations, according to a recent interview Al-Masoud conducted with Arab News.
As a prominent regulatory body, it aims to safeguard the integrity of market mechanisms while fostering innovation and diversity in products and services.
stc Bank set to launch later this year, says group CEO
RIYADH: Saudi telecom giant stc Group has obtained official approval for the soft launch of its new banking sector subsidiary, aiming to provide Shariah-compliant fintech solutions.
The Saudi Central Bank has given the green light for the beta launch of stc Bank, with a full rollout to all customers anticipated later this year, revealed the company's CEO, Olayan Al-Wetaid, while announcing the financial results of the first quarter.
The new entity will offer banking services and financial solutions compliant with Islamic Shariah, prioritizing high security and customer protection through advanced fintech. This aligns with the ambitious goals of the Kingdom’s Vision 2030 for a prosperous diversified economy.
In its financial results announcement for the period ending March 31, the CEO explained that stc Group has strengthened its position in the telecommunications sector through a strategic partnership with the Public Investment Fund.
Earlier in April, the two entities finalized agreements for PIF to acquire a 51 percent stake in the Telecommunications Towers Co., also known as Tawal, valuing the company at SR21.94 billion ($5.8 billion).
This transaction is part of a broader merger with Golden Lattice Investment Co. to form a new entity that aims to lead the national telecommunications infrastructure, with stc Group retaining a 43.06 percent stake.
These developments are part of stc’s DARE 2.0 strategy, which focuses on unconventional growth paths and leading digital transformation in the region, Al-Wetaid stated.
The strategy has already yielded significant results, with stc’s network experiencing its highest volume of voice calls during the recent Ramadan, a 35 percent increase compared to the previous year, supported by modern digital voice technologies.
Further embodying its growth strategy, stc Group has engaged in numerous strategic partnerships and agreements, notably at the LEAP 2024 conference with global tech giants such as Huawei, Ericsson, and Samsung.
These collaborations are designed to enhance innovation and speed up digital transformation across the region.
Additionally, the group’s subsidiary, Solutions, signed a memorandum of understanding with the French Devoteam Group in February to explore IT investment opportunities globally, following Solutions’ acquisition of a 40 percent stake in Devoteam Middle East.
In its financial report, stc Group highlighted a notable growth in revenues for the first quarter of 2024, which increased by 7.76 percent compared to the previous quarter and by 5.07 percent compared to the same quarter last year, totaling SR19.1 billion.
This revenue growth was primarily driven by a 1.2 percent increase in stc Saudi Arabia’s revenues, supported by a 6.7 percent rise in commercial unit revenues and a 5.7 percent increase in carriers and wholesale unit revenues, despite a decline in business unit revenues.
Additionally, revenues from stc’s subsidiaries saw a significant rise of 13 percent.
The company also reported growth in gross profit, which rose by 5.13 percent compared to the previous quarter and by 1.65 percent compared to the same quarter last year, reaching SR9.3 billion.
Earnings before interest, taxes, zakat, depreciation, and amortization similarly showed a robust increase, rising by 16.3 percent compared to the previous quarter and by 2.07 percent compared to the same period last year, reaching SR6.4 billion.
Notably, net profit for the quarter surged by 44.50 percent compared to the previous quarter and increased by 5.69 percent compared to the same quarter last year, totaling SR3.2 billion.
