Apple v. Samsung Trial (May 2014)
In a patent infringement case widely covered in major media outlets, Analysis Group and academic affiliates Judith Chevalier of the Yale School of Management, Tülin Erdem of the NYU Stern School of Business, George Foster of the Stanford Graduate School of Business, and David Reibstein of the University of Pennsylvania Wharton School were retained by Samsung Electronics and its counsel, Quinn Emanuel Urquhart & Sullivan LLP, to provide consulting and expert witness services. The affiliates' testimony addressed consumer demand for smartphones and tablets, the role played by the functionalities associated with Apple's patents, and the appropriate damages remedy used in the dispute. After finding infringement, a San Jose, California jury ordered Samsung to pay $119.6 million in damages, far short of the $2.2 billion sought by Apple.
Professor Chevalier testified that the functionalities associated with Apple's patents had no discernible impact on consumer demand for Samsung's smartphones and tablets, and determined that reasonable royalties were an appropriate remedy. Professor Erdem evaluated market research conducted by each company, as well as her own analysis of the factors that consumers consider, and determined that smartphone and tablet customers typically base their purchase decisions on major product features and not minor features. Professor Reibstein assessed a conjoint analysis presented on behalf of Apple and determined that it was not suitable to evaluate the extent to which Apple's patented functionalities may influence marketplace outcomes because the analysis failed to account for the role of major product features, consumer awareness of patented features, and whether survey respondents adequately understood the functionalities associated with the patents. Professor Foster analyzed the strategies employed by leading smartphone manufacturers that had the greatest impact on marketplace outcomes.
Managing Principals T. Christopher Borek and Justin McLean led the Analysis Group case team, which included CEO and Chairman Martha Samuelson; Managing Principals Lisa Pinheiro and Marc Van Audenrode; Principals Jimmy Royer and Robert Vigil; and Vice Presidents John Browning, Peter Hess, and Peter Simon.