• Home
  • News
  • Fortune 500
  • Tech
  • Finance
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia

Why would Apple settle?

By
Philip Elmer-DeWitt
Philip Elmer-DeWitt
Down Arrow Button Icon
By
Philip Elmer-DeWitt
Philip Elmer-DeWitt
Down Arrow Button Icon
August 16, 2012, 7:57 AM ET

Court drawing: Vicki Behringer for Reuters

FORTUNE — “It’s time for peace,” Judge Lucy Koh declared in federal court Wednesday, the ninth day of the jury trial in Apple’s (AAPL) high-stakes patent infringement suit against Samsung. “I see risk here for both sides if we go to a verdict.”

Christopher Carani, a partner at Chicago-based McAndrews, Held & Malloy and an authority on design law, respectfully disagrees.

The risks for Samsung are well known, he says: Injunctions, delays, the need to design around Apple’s patents, and the stigma of being known as a copyist — not to mention billions of dollars in damages.

Apple, on the other hand, has little to lose by waiting for the jury’s verdict. It’s already spent the lion’s share of the monstrous legal fees, and those who view the company as over-litigious are not likely to change their mind.

Besides, based on his reading of the transcripts, Carani believes the case is going Apple’s way.

On the iPad:

Judge Koh already tipped her hand on the iPad design infringement charge when she granted Apple a preliminary injunction against the Galaxy Tab. And the parade of “prior art” Samsung’s legal team trotted out Monday and Tuesday, according to Carani, is not likely to persuade a jury that Apple’s tablet design patent is invalid:

“Either (1) the prior art has already been submitted and rejected, as a matter of law, by the Federal Circuit during the earlier appeal, or (2) its previous prior art submissions were closer in visual appearance than its new submissions; the new prior art submissions will suffer the same fate.”

On the iPhone:

Samsung is not likely to fare much better in its defense against Apple’s three iPhone design patents, according to Carani. The Federal Circuit court has already ruled on what he says was Samsung’s best bet — the so-called JP’638 patent — declaring it insufficient to invalidate Apple’s patents. And the infamous F700 (and its related patent KR’895) have both been excluded because Samsung waited until after the court’s deadline had passed to introduce them into evidence.

Besides, Carani says, Apple hasn’t even begun to exhaust its smartphone patent arsenal:

“Keep in mind that while it has asserted two smart phone design patents and one GUI design patent, Apple has dozens of others that they have not asserted that are directed at the same products, but having varying scope (some narrower, some broader).  Thus, the main risk to a patentee in a patent case — having one’s patent invalidated — is largely eliminated in this case. In other words, even if these design patents are wiped out, there are more in the cupboard.

“Further, and perhaps most significant, Apple has other continuation applications pending at the [Patent Office] that Apple can amend and modify pending on the outcome of the case. In sum, as a direct result of its sophisticated design patent acquisition program (which was a central part of Steve Jobs’ edict to jumpstart Apple’s IP acquisition), Apple now has a high degree of flexibility to maneuver depending which way the case comes out; it can largely mitigate any casualties of litigation. In other words, Apple can add more to the cupboard.”

Judge Koh, meanwhile, has plenty of reasons to ask the two company’s CEOs to talk one last time. For one thing, the instructions she’s been asked to give the jury are more than 100 pages long and will take an hour and a half to read. According to Koh, they’re going to “put everyone into a coma.”
About the Author
By Philip Elmer-DeWitt
See full bioRight Arrow Button Icon

Latest in

CryptoBinance
Binance has been proudly nomadic for years. A new announcement suggests it’s finally chosen a headquarters
By Ben WeissDecember 7, 2025
2 hours ago
Big TechStreaming
Trump warns Netflix-Warner deal may pose antitrust ‘problem’
By Hadriana Lowenkron, Se Young Lee and BloombergDecember 7, 2025
6 hours ago
Big TechOpenAI
OpenAI goes from stock market savior to burden as AI risks mount
By Ryan Vlastelica and BloombergDecember 7, 2025
6 hours ago
InvestingStock
What bubble? Asset managers in risk-on mode stick with stocks
By Julien Ponthus, Natalia Kniazhevich, Abhishek Vishnoi and BloombergDecember 7, 2025
6 hours ago
EconomyTariffs and trade
Macron warns EU may hit China with tariffs over trade surplus
By James Regan and BloombergDecember 7, 2025
6 hours ago
EconomyTariffs and trade
U.S. trade chief says China has complied with terms of trade deals
By Hadriana Lowenkron and BloombergDecember 7, 2025
6 hours ago

Most Popular

placeholder alt text
Real Estate
The 'Great Housing Reset' is coming: Income growth will outpace home-price growth in 2026, Redfin forecasts
By Nino PaoliDecember 6, 2025
2 days ago
placeholder alt text
AI
Nvidia CEO says data centers take about 3 years to construct in the U.S., while in China 'they can build a hospital in a weekend'
By Nino PaoliDecember 6, 2025
1 day ago
placeholder alt text
Economy
The most likely solution to the U.S. debt crisis is severe austerity triggered by a fiscal calamity, former White House economic adviser says
By Jason MaDecember 6, 2025
1 day ago
placeholder alt text
Big Tech
Mark Zuckerberg rebranded Facebook for the metaverse. Four years and $70 billion in losses later, he’s moving on
By Eva RoytburgDecember 5, 2025
2 days ago
placeholder alt text
Economy
JPMorgan CEO Jamie Dimon says Europe has a 'real problem’
By Katherine Chiglinsky and BloombergDecember 6, 2025
1 day ago
placeholder alt text
Uncategorized
Transforming customer support through intelligent AI operations
By Lauren ChomiukNovember 26, 2025
11 days ago
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • Future 50
  • World’s Most Admired Companies
  • See All Rankings
Sections
  • Finance
  • Leadership
  • Success
  • Tech
  • Asia
  • Europe
  • Environment
  • Fortune Crypto
  • Health
  • Retail
  • Lifestyle
  • Politics
  • Newsletters
  • Magazine
  • Features
  • Commentary
  • Mpw
  • CEO Initiative
  • Conferences
  • Personal Finance
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
About Us
  • About Us
  • Editorial Calendar
  • Press Center
  • Work At Fortune
  • Diversity And Inclusion
  • Terms And Conditions
  • Site Map

© 2025 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.