Apple must reveal exactly how much profit it makes on each iPhone and iPad, a U.S. Court ordered.
Everything seemed pretty much settled. Apple scored a major win against Samsung and California, and now stands to collect huge damages. German courts were also ruling with Apple, agreeing that Samsung has breached the design patents. European Union (EU) action was on the tablet as well. Two new court rulings, however, have come up to steal Apple's thunder.
The first one refers to the $1.05 billion damages award Apple won. To win that damages award, Apple used its private financial data to great extent in the courtroom battle, and now the court has ordered the Cupertino giant to reveal all about its profit margins to collect those damages from Samsung. The second ruling, meanwhile, corrects the German one, determining that by EU law the Samsung Galaxy Tab does not breach Apple's patent.
On Thursday, Oct. 18, U.S. District Judge Lucy Koh - the same judge that ruled on the patent lawsuit Apple brought against Samsung earlier this year - denied Apple's request to seal many of the documents it used to make its damages case against Samsung. Instead, Koh ordered Apple to release key financial information regarding "product specific unit sales, revenue, profit, profit margin, and cost data."
While Apple's published records show how much profit it makes, they do not show how much it makes on which products. According to Koh, Apple cannot use its financial data to win a huge damages award and then refuse to reveal that data.
"In seeking the very large damages award it sought at trial, Apple stipulated to the introduction of JX1500, a partial summary of its damages calculations, which contains some product-specific unit sales and revenue information. See ECF No. 1597," wrote the judge.
"As Apple appears to have realized in introducing that exhibit it cannot use both its financial data to seek multi-million dollar damages and insist on keeping it secret."
Apple's main argument for keeping its data private is that trade secrets would provide its rivals with a competitive advantage. The Cupertino giant has not convinced the court, however, and while Koh has agreed to a temporary stay pending federal court appeal, Apple may soon have no choice but to reveal important sales data that it has long kept secret.
"As this Court explained in the August 9 order, Apple has not established that public availability of its product-specific unit sales, revenue, profit, profit margin, and cost data would actually provide competitors with an advantage, as would be required to find the information sealable under the 'competing reasons' standard," explained Koh.
Apple's last chance to avoid going public with its data is with the U.S. District Court of Appeals. Otherwise, investors and analysts may have a field day looking behind the curtains.
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