The Supreme Court took up the blockbuster legal battle between Apple and Samsung Tuesday in a case likely to result in a landmark decision on the importance of design in technology patents.
The highest US court began hearing arguments over damages the South Korean smartphone giant owes Apple for allegedly violating design patents by producing copycats of its groundbreaking iPhone.
Observers are watching to see how the court—which has not taken up a design patent case in more than a century—tips the balance between technological innovation and protecting intellectual property. A ruling is expected in several months.
The US Court of Appeals for the Federal Circuit upheld a $400 million verdict—part of a nearly billion-dollar award in Apple's favor later reduced to $548 million—that found Samsung had copied the iPhone, including its distinctive front screen and graphical touchscreen interface.
The case is among several in courts around the world between the two smartphone giants, but this case is likely to set an important precedent over the importance of design patents.
California-based Apple had protected those features with US design patents that concern the way items look. They are distinct from utility patents, which protect how articles are used and work, and do not concern copyrights or trademarks.
Samsung is challenging the verdict, disputing how damages are calculated in design patent cases.
The award—in accordance with a statute first adopted in 1887 and later affirmed by Congress in 1952—requires patent violators to hand over their total profits even if the violation covers only one element of a product.
Samsung argues it should be held liable only for some portion of the profit tied to patented design aspects, given the many innovative components that go into the making of smartphones.
Apple interprets the statute more narrowly, saying it is entitled to all profits from Samsung's phones.
How much design protection?
The legal battle which began more than five years ago could have major repercussions in a tech industry where design and innovation play key roles in distinguishing one device from another.
But a major debate is underway on just how much protection should be granted for visual design.
In preparation for its arguments before the Supreme Court, Samsung won the backing of major Silicon Valley and other IT sector giants, including Google, Facebook, Dell and Hewlett-Packard, as well as a group of law professors.
Apple, for its part, got backing from big names in fashion and manufacturing, such as Calvin Klein and Adidas, and the American Intellectual Property Law Association, whose members—largely lawyers—represent owners and users of intellectual property.
An amicus brief filed on behalf of design professionals, researchers and academics said they have no financial interest in the case but argue on the basis of "fundamental principles of visual design."
They cite precedents like the Coca-Cola bottle, which is an integral part of the value of the product, according to the brief
Look-alike smartphones
Apple's supporters argue that Samsung's argument would hurt the tech industry by weakening the patent system.
"A strong patent system will force technology companies to actually innovate, not mimic. That is how patent systems are designed to work all over the world," said Matthew Siegal, an intellectual property lawyer with the firm Stroock & Stroock & Lavan.
"A strong patent system will lead to the next generation phone based on actual innovation."
Tuesday's hearing is set to take place before a short-handed panel of eight justices, with a ninth still missing since Antonin Scalia's death in February.
Republicans in Congress have refused to replace him with President Barack Obama's nominee before the Democrat leaves office in January.
The hearing takes place at a difficult time for Samsung, as it is struggling to contain a snowballing safety crisis that threatens to derail the powerhouse global brand.
It told customers worldwide on Monday to stop using Galaxy Note 7 smartphones, calling a halt to global sales and exchanges following complaints that its lithium-ion battery explodes while charging.
Apple is also facing challenges from mounting international competition, having lost a critical share of the Chinese market after critics there found its latest iPhone 7 lacks major innovations.
Explore further: Apple, Samsung take battle to US Supreme Court