Company vs Company

Apple vs Samsung: the patent war that set the rules for smartphone rivals

Seven years of litigation, a billion-dollar verdict and a unanimous Supreme Court ruling ended in a quiet settlement in 2018. The fight still shapes how design patents are valued.

A Samsung Galaxy S24 Ultra and an iPhone 13 Pro lying side by side
Current Samsung and Apple flagships; the original dispute concerned phones and tablets sold in 2010 and 2011. Photo: SimonWaldherr / Wikimedia Commons, CC BY-SA 4.0

In brief

  • Apple sued Samsung in the Northern District of California on 15 April 2011, accusing its Galaxy phones and tablet of copying the iPhone and iPad.
  • A jury awarded Apple $1.049bn in August 2012 and rejected Samsung’s counterclaims; the sum was later cut on appeal and retrial.
  • In December 2016 the US Supreme Court ruled 8–0 that design-patent damages can be based on a component rather than the whole phone.
  • A May 2018 retrial awarded Apple about $539m; the companies settled on undisclosed terms on 27 June 2018.

For most of the 2010s, Apple and Samsung competed as hard in court as they did in phone shops. The dispute began on 15 April 2011, when Apple sued Samsung in federal court in California, alleging that its Galaxy phones and Galaxy Tab copied the iPhone and iPad.

Samsung answered within days with suits in South Korea, Japan and Germany, then in the UK, Delaware and at the US International Trade Commission. By late 2011 the two were fighting about 20 cases in ten countries, and by 2012 more than 50 lawsuits worldwide.

The billion-dollar verdict and its unravelling

The headline case went to a jury in the Northern District of California, before Judge Lucy Koh. In August 2012 it awarded Apple $1.049bn over design patents covering features such as rounded corners, the home button and on-screen icons, and utility patents including bounce-back scrolling and tap-to-zoom, and it rejected Samsung’s counterclaims. The award did not survive intact: further proceedings brought the damages down to $290m by November 2013, according to the case record. In May 2015 an appeals court upheld much of the verdict but threw out the trade-dress portion.

A second US trial over newer devices ended in May 2014 with $119.6m for Apple and $158,400 for Samsung. After being struck down and then restored on appeal in 2016, it stood once the Supreme Court declined review in November 2017.

The Supreme Court’s question

Samsung’s main appeal targeted roughly $399m in design-patent damages, calculated on its entire profit from the infringing phones. On 6 December 2016 the Supreme Court ruled 8–0, in an opinion by Justice Sonia Sotomayor, that the relevant “article of manufacture” can be a component, such as a case or screen, rather than the whole product. It left the lower courts to define the test.

At the 2018 retrial Apple asked for $1bn and Samsung argued for $28m. On 24 May 2018 the jury awarded about $539m: $533.3m for three design patents and $5.3m for two utility patents. Samsung sought yet another trial, but on 27 June 2018 the two filed papers dismissing all remaining claims with prejudice, terms undisclosed.

The settlement ended the fight, but the Supreme Court’s component rule outlived it and now governs every design-patent damages claim.

Why it still matters

For company-versus-company fights today, the lessons are practical. Global patent wars are fought on many fronts at once, damages can swing by hundreds of millions of dollars across retrials, and after the 2016 ruling a design patent’s value depends on which part of a product it actually covers.

What to watch

  • How courts apply the component test in new design-patent disputes between device makers.
  • Whether today’s smartphone rivals settle earlier rather than repeat a seven-year, multi-country fight.

How we got here

  1. 15 Apr 2011Apple sues Samsung in the US District Court for the Northern District of California.
  2. Apr 2011Samsung files patent suits against Apple in South Korea, Japan and Germany.
  3. Aug 2012Jury awards Apple $1.049bn and rejects Samsung’s counterclaims.
  4. May 2014Second US trial awards Apple $119.6m and Samsung $158,400.
  5. 6 Dec 2016Supreme Court rules 8–0 that design-patent damages can rest on a component.
  6. 24 May 2018Retrial jury sets damages at about $539m.
  7. 27 Jun 2018Apple and Samsung settle remaining US claims on undisclosed terms.

Sources

TradeWar wrote this article from the public reporting and documents below. Figures and statements are attributed in the text.

  1. Apple Inc. v. Samsung Electronics Co. Wikipedia, 24 Oct 2026
  2. Samsung Ordered to Pay Apple $539 Million in iPhone Design Patent Retrial MacRumors, 24 May 2018
  3. Samsung and Apple Settle Long-Running Design Patent Dispute MacRumors, 27 Jun 2018