Samsung's imitation wasn't flattering—it cost billions, Apple's lawyers say.
It was a presentation that would have made Steve Jobs proud. Just as
Jobs knew how to stun the public and the press with a shiny Apple new
product, Apple lawyer Harold McElhinny was smooth and direct in his
presentation. Using big bold slides, and a bit of video to show off the
best features, he laid out a simple version of smartphone history that
put his client at the center: Apple came first. Imitators like Samsung
followed. And now it's time for them to pay up.
How did Samsung move from the phones it was making in 2006 to the
sleek, large-screen smartphones it was selling in 2010, asked McElhinny?
"To answer that question, we have to go back to January 9, 2007," he
told the jury. "That's when Steve Jobs introduced the iPhone at the
Macworld conference."
McElhinny's monologue, a bit over an hour, was like a sleek Apple
marketing pitch, with legal language seamlessly mixed in. The speech was
the first building block of Apple's giant patent case against Samsung.
The iconic Cupertino company wants more than $2.5 billion in damages
from its Korean competitor, as well as injunctions that would kick
Samsung's products off the market.
At times McElhinny waxed rhapsodic about his client, its innovative culture, and the products it produced.
"At the same time Mr. Jobs introduced the iPhone, he warned his
competitors that he had filed for patent protection on more than 200 new
inventions in the phone," he said. "Over 200 new inventions—let's think
about what that means. It's about creating... a user experience so
unique and intuitive that it just feels right."
Apple is a company that "always has its eye on the future," McElhinny
continued: "What the world needed, and it didn't have, was a phone that
had the capabilities of a computer. Apple designed an entirely new
product—a phone, a web browser, and a music player. It was a phone
design that the world had never seen. Physical keyboards would become a
thing of the past. It required an entirely new hardware system, the Mac
OS system. It required an entirely new user interface. That interface
had to become completely intuitive.
Critics had hailed the iPhone, too, McElhinny said. Slides flashed
by—The New York Times and Wired lavishing praise on the iPhone; Time
Magazine calling it the 2007 Invention of the Year.
"What struck me about the iPhone was—there's no manual," said
McElhinny. You had to walk into the store, pick it up, and get drawn in
to use the device. If that didn't happen immediately—you'd never buy
it."
Then McElhinny inveighed against Samsung, the accused copier.
"Apple's competitors immediately recognized the impact of the new
device," said McElhinny. "Samsung was faced with a choice: it could come
up with its own designs, and beat Apple fairly in the marketplace. Or
it could copy Apple."
And copy Apple it did, he said; producing sleek black-faced phones
with big screens, and using the same user-interface features that Apple
had patented, like a "bounce back" feature for scrolling, and a method
of navigating screens with a quick double tap. The story was told by
Samsung's own internal documents, he said.
"At the highest corporate levels, Samsung decided to copy every element of the iphone," said McElhinny.
The press had noticed, too. "Samsung vibrant rips off iPhone 3G design," read
one headline that was showed to the jury.
Next up in the Apple-approved history: the iPad. "Can you believe the
iPad has only been around for two years?" said a briefly awed
McElhinny, going on to call it "magical" and "revolutionary," echoing
the bubbly headlines of 2010 and Apple's own marketing.
Quick videos demonstrated the features of each of Apple's three
utility patents in the case. One was over the "rubber band" feature,
where documents or images snap back into place when a finger pushes them
off a touch-screen; another covered the idea of allowing a double-tap
to navigate a screen without zooming out. The company alleges those
popped up in Samsung phones shortly after being patented by Apple.
The jury should reject any suggestion that the user-interface
features Apple designers cooked up are unimportant, warned McElhinny.
The patented features are important so that customers could
"intuitively" use the devices. "My four-year-old granddaughter taught
herself to use an iPad," he said. "If these were trivial, why did they
show up in your [Samsung's] customer surveys, and why did you copy
them?"
McElhinny ended with a promise that the jury will see the story in
Samsung's own documents. Those documents—acquired during painstaking
discovery and translated into English—show more than 100 instances where
Samsung altered its phones and tablets to achieve their goal of making
them "identical to Apple products," he said.
The attorney accused Samsung of profiting enormously from its strategy.
Samsung has made more than 22 million infringing phones, which have
earned more than $2 billion in profit, according to Apple's
calculations.
Samsung's defense: it's competition, not infringement
"Retangular screens, round corners, and minimalist design?" said
Samsung's lawyer, Charles Verhoeven. "Apple didn't invent that."
Within a few minutes of his opening, Verhoeven was wheeling through
slides of patent designs from Japan and Korea that reached back to 2006,
2005, even back to 2004—years before the iPhone was launched.
"This is the Korean '547 patent," said Verhoeven. "Again, you've got a large rectangular screen."
Apple's products may be successful, Verhoeven noted, but that doesn't
mean the company was first to create these innovations—they're not true
inventions. "There's a distinction between commercial success and
inventing something."
Same story with the iPad. Verhoeven showed computer tablets with similar
forms stretching back to a 1994 tablet called the "Fiddler."
"They didn't invent a large touchscreen with rounded corners," said
Verhoeven. That had been made before—it's just that it had taken years
for the market to demand such large screens.
"We're not saying it wasn't a great product," said Verhoeven. "It was inspiring to everyone, including the competition."
Cell phones evolved. "As functionality increased, the entire industry
moved towards screens that are much, much larger," he said. "Nobody's
going to want to watch a movie on a tiny little screen."
Verhoeven continued: "Is that infringement? No, the evidence is going
to show, that's competition. It's providing the consumer what the
consumer wants. In the consumer wants a phone with a large screen and
touch face, Samsung provides that. It's not some johnny-come-lately
developing knockoffs! It's creating technology that is what people
want."
Samsung makes all kinds of phones. Phones that slide, "folder-type"
flip phones, and "bar type" phones with big screens that look more
similar to apple's products.
"Unlike Apple, that basically makes just one kind of phone, Samsung makes all kinds of phones for all kinds of people."
He also touted his client's history of innovation—a pioneer in the
mobile business since 1991, Samsung employs more than 20,000 engineers,
and has invested $35 billion in research and development just from 2005
to 2010, he said. The company is no "copyist," Verhoeven said. "Samsung
is a major technology company, doing its own innovation."
The presentation was a sometimes choppy follow-up to McElhinny's
smooth attack a few minutes before. Verhoeven read many slides directly
and seemed to repeat his themes; a video had volume that jumped up and
down wildly, and stopped playing at one point.
A stressful first day with a smaller jury
It wasn't just Samsung's strained presentation; the day had a
stressful feeling from the start. The hallway was packed with dozens of
reporters, lawyers, and observers, who filed into the court minutes
before arguments began.
Stress was the first thing the judge wanted to talk about, in fact.
One of the jurors was feeling stressed, to the point of having panic
attacks, said U.S. District Judge Lucy Koh. The situation with her pay
wasn't made clear by her boss, and she wanted off the jury. Koh checked
that the parties had no objections, and then let her go, making turning
the ten-person jury into a panel of nine.
Before opening arguments even started, stress turned into sparks, as a
Samsung lawyer beseeched Koh to kick out one of Apple's slides, but Koh
wasn't having it.
"Your Honor, i've been practicing 36 years, and I've never begged the
court," said John Quinn, name partner at Quinn Emanuel, Samsung's law
firm. "I'm begging the court now to hear this issue—"
"I've reviewed what you filed yesterday," said Koh, testily. "I heard
argument on this yesterday. Mr. Quinn, please, we've had three
reconsiderations on this."
"Can I ask the court for some explanation?" said Quinn.
"Mr. Quinn, don't make me sanction you, please. You've had two, if not three, if not four opportunities to brief this."
"Can I change the subject?" asked Quinn.
"No," said Koh. "I want you to sit down. Please."
Openings began shortly after that, and went past the lunch break.
They were followed by the first witness, Apple designer Christopher
Stringer, listed as an inventor on many of Apple's patents. Stringer, a
lanky middle-aged man with shoulder-length gray hair and a goatee,
didn't take the stand until almost 3:00. The iPhone was an "icon," he
said simply, "the most beautiful of our designs."
He was even-keeled, but the designer didn't mince words.
"We've been ripped off, it's plain to see," he said. "By Samsung in particular."
After Stringer stepped down, Apple VP Philip Schiller took the stand
for just a few minutes. The trial now takes a break until Friday, when
Schiller will re-take the stand.