Home >> Sci & Tech

How Samsung may help Apple escape $533 million fine

South Korean electronics giant Samsung could help its arch rival Apple save about $533 million.

It may be recalled that Apple was ordered by a jury in February to pay the abovementioned amount as its iTunes service infringed patents owned by Texas licensing firm Smartflash.

Now, Samsung has been sued over by the same technology but the company has managed to convince the US regulators to review whether two patents owned by Smartflash should have been issued in the first place.

If the U.S. Patent and Trademark Office decides to review those patents, it will prove beneficial for both Samsung as well as Apple.

"Can Apple put off paying any damages until there's resolution of the Samsung case?" said Justin Oliver, who heads Fitzpatrick, Cella, Harper & Scinto's office for contested patent office proceedings. "If it's forced to pay damages, it's very difficult to get that back."

The patents of Smartflash cover ways of controlling access to digital data through payment systems. It was invented by Patrick Racz in 2002. Racz also tried to commercialize the invention with pop singer Britney Spears.

Few days ago, preliminary findings were released by a patent agency review board, which showed that patents aren't eligible for legal protection because they cover abstract ideas, not actual inventions. The jury will now hear arguments from both Samsung and Smartflash before taking a final decision. Experts maintain that it is highly unlikely that Smartflash would win the case.

Jason Cassady of Caldwell, Cassady & Curry in Dallas, who is representing Smartflash, said the company has fought this battle in the past too. "This is just the institution of the review," Cassady said. "It's a little different than most cases and we feel confident."