• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia

Trendingnow

1

As Big Tech showers employees with perks to win the talent war, Nvidia built a nearly $5 trillion company by making people pay for their own lunch

2

MacKenzie Scott alone accounted for one-third of America's $19.2 billion in megagifts last year

3

Philanthropy leader at Warren Buffett and Bill Gates’ Giving Pledge says children of billionaires are pushing them to give their wealth away faster

1

As Big Tech showers employees with perks to win the talent war, Nvidia built a nearly $5 trillion company by making people pay for their own lunch

2

MacKenzie Scott alone accounted for one-third of America's $19.2 billion in megagifts last year

3

Philanthropy leader at Warren Buffett and Bill Gates’ Giving Pledge says children of billionaires are pushing them to give their wealth away faster
TechGlobal 500

Why the Supreme Court Asked If the iPhone Design Is Like a Volkswagen Beetle

Jeff John Roberts
By
Jeff John Roberts
Jeff John Roberts
Editor, Finance and Crypto
Down Arrow Button Icon
Jeff John Roberts
By
Jeff John Roberts
Jeff John Roberts
Editor, Finance and Crypto
Down Arrow Button Icon
October 11, 2016, 12:15 PM ET
Add Fortune on Google for similar content.

The Volkswagen Beetle took center stage as the Supreme Court argued about iPhones on Tuesday in a closely watched intellectual property case between Apple and Samsung over the value of design.

The case turned on three design patents covering the appearance of early editions of the iPhone—including the device’s black rectangular shape and the layout of icons on the screen—which led a jury to order Samsung to pay $399 million in damages.

Before the Supreme Court, the issue at stake was not whether Samsung infringed on the patents, but instead how much the Korean company should pay based on a law that allows a patent owner to receive a competitor’s “total profit.” Should that profit be for the entire value of the smartphone, as an appeals court ruled, or only for profits attributable to the copied design?

In trying to make sense of the design patents’ value, the judges repeatedly invoked the body shape of Volkswagen’s iconic Beetle model, noting that consumers will pay extra for a cool-looking car. But they drew back at saying a company, in cases of complex products, should be able to use a patent for exterior appearance to collect for the whole thing.

Justice Stephen Breyer contrasted simple products like wallpaper to cars and smartphones, which are often covered by hundreds or thousands of patents and design decisions.

“For wallpaper, you get the whole thing. A Rolls Royce with the thing on the hood? No, no, no you don’t get profits on the whole car,” said Breyer.

Much of Tuesday’s argument was dedicated to the complicated question of how a jury should define a so-called “article of manufacturer” and how it should award damages. (Alas, none of the Justices revealed if they are iPhone or Android users—or if they use smartphones in the first place).

Get Data Sheet, Fortune’s technology newsletter

Samsung’s lawyer, Kathleen Sullivan of Quinn Emanuel, argued in favor a two-part process in which a court would first establish the patented “article” in dispute, and then assess the damages based on expert witnesses or consumer survey evidence.

Apple’s lawyer, Seth Waxman of Wilmer Hale, devoted much of his time to a technical argument, saying the Supreme Court shouldn’t consider the matter at on the grounds that Samsung had failed to say at trial that the design patents did not cover the entire iPhone.

The Justices appeared to reject Waxman’s invitation, at times asking him to stop harping on the evidentiary record, and instead to focus on defining a process to define “articles of manufacture.”

Both Apple (AAPL) and Samsung (SSNLF) mostly agreed with a four-part approach to the definition process proposed by the Justice Department, which also appeared before the Supreme Court, and likewise rejected the lower court’s position that “total profit” should always cover the value of the entire product.

The hearing was unusual in that, by the time Apple and Samsung appeared for arguments, the parties had abandoned earlier positions on how to value design patents, and instead both agreed on Tuesday that the lower court’s “total profit” interpretation was wrong.

As a result, the Supreme Court’s decision will almost certainly overturn the lower court’s ruling, and send the case back to a trial court for a jury to determine the proper value of the design patents. As for what test the lower court’s should use, Justice Breyer repeatedly expressed support for a proposal by Internet Association, a trade group backed by Facebook (FB) and others, which said:

[W]here a design “has been applied” to only part of a multicomponent product and does not drive demand for the entire product, the “article of manufacture” is rightly considered to be only the component to which the design applies, and only profit attributable to that component may be awarded.

A ruling on the case is likely to come in December or January.

Both Apple and Samsung issued statements after the ruling, but ones that largely skirted the substance of the hearing.

“We firmly believe that strong design patent protection spurs creativity and innovation … Eleven times now, Samsung has been found guilty of intentionally and blatantly copying the iPhone. We think that’s wrong and that it poses chilling risks to the future of design innovation,” said Noreen Krall, Apple’s Chief Litigation Officer.

Samsung, for its part, published a statement that pointed to its own large portfolio of design patents, and called on the court to change the damages rule.

“Awarding all of the profits for a single patent devalues the contributions of the hundreds of thousands of other patents in a smartphone. We are hopeful that the Supreme Court will give a sensible and fair reading to the design patent statute.”

A multi-front battle

The dispute, which some are calling the “design case of the century,” involves just one aspect of a long-running feud between the companies that began in 2010 when Apple’s late CEO accused Samsung of “slavishly copying” the iPhone. The case has given rise to all sorts of legal issues, including the scope of patents and how other forms of intellectual property, such as trademarks and trade dress should apply.

Apple obtained the three patents in 2009 and 2010. Less common than “utility patents,” which protect new mechanical or industrial discoveries, design patents are intended to cover the distinct ornamental aspects of an invention.

The case saw a number of tech companies as well as an influential group of law professors support Samsung in calling for a more narrow interpretation of “total profit” in the case of design patents. Meanwhile, design-focused companies like Tiffany and Co (TIF) and Adidas weighed in to back Apple.

The hearing on Tuesday came less than a week after an appeals court reinstated a $120 million verdict in favor of Apple in a separate patent dispute—a ruling that Samsung has indicated it may likewise appeal to the Supreme Court.

This story was updated at 1:05pm Et to include the companies’ statements.

About the Author
Jeff John Roberts
By Jeff John RobertsEditor, Finance and Crypto
LinkedIn iconTwitter icon

Jeff John Roberts is the Finance and Crypto editor at Fortune, overseeing coverage of the blockchain and how technology is changing finance.

See full bioRight Arrow Button Icon
Add Fortune on Google for similar content.

Latest in Tech

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in Tech

How foodservice giant Sodexo is embracing AI and robotics to reshape the kitchen
NewslettersCIO Intelligence
How foodservice giant Sodexo is embracing AI and robotics to reshape the kitchen
By John KellJuly 1, 2026
9 hours ago
Anthropic CEO Dario Amodei
AIAnthropic
Anthropic’s AI models are back online after a two-week government standoff—settling the company and administration into a fragile truce
By Tristan BoveJuly 1, 2026
9 hours ago
Nikesh Arora, chief executive officer at Palo Alto Networks
SuccessJobs
CEO of $248 billion cybersecurity company says workers are about to face a ‘Darwinian moment’ thanks to AI: Evolve or get cut
By Emma BurleighJuly 1, 2026
10 hours ago
Current price of Ethereum for July 1, 2026
Personal FinanceEthereum
Current price of Ethereum for July 1, 2026
By Joseph HostetlerJuly 1, 2026
12 hours ago
In this photo illustration, a Cisco logo is displayed on a smartphone with Artificial Intellingence (AI) symbols in the background.
AICFO Daily
Cisco is rolling out AI agents to every single one of its 90,000 employees
By Sheryl EstradaJuly 1, 2026
13 hours ago
senate
CommentaryCongress
One rare bipartisan AI bill is moving through Congress. Here’s why it deserves to pass
By Neil Björkman and Betsy BrewerJuly 1, 2026
14 hours ago

Most Popular

As Big Tech showers employees with perks to win the talent war, Nvidia built a nearly $5 trillion company by making people pay for their own lunch
Big Tech
As Big Tech showers employees with perks to win the talent war, Nvidia built a nearly $5 trillion company by making people pay for their own lunch
By Marco Quiroz-GutierrezJuly 1, 2026
18 hours ago
MacKenzie Scott alone accounted for one-third of America's $19.2 billion in megagifts last year
Success
MacKenzie Scott alone accounted for one-third of America's $19.2 billion in megagifts last year
By Sydney LakeJune 25, 2026
7 days ago
Philanthropy leader at Warren Buffett and Bill Gates’ Giving Pledge says children of billionaires are pushing them to give their wealth away faster
Success
Philanthropy leader at Warren Buffett and Bill Gates’ Giving Pledge says children of billionaires are pushing them to give their wealth away faster
By Preston ForeJune 27, 2026
5 days ago
The Supreme Court's birthright citizenship ruling hands the U.S. economy a $7.7 trillion win
Newsletters
The Supreme Court's birthright citizenship ruling hands the U.S. economy a $7.7 trillion win
By Diane BradyJuly 1, 2026
16 hours ago
Elon Musk on MacKenzie Scott giving away $26 billion of her fortune: 'Sadly,' it makes the world a worse place
Success
Elon Musk on MacKenzie Scott giving away $26 billion of her fortune: 'Sadly,' it makes the world a worse place
By Sydney LakeJune 29, 2026
2 days ago
Current price of oil as of July 1, 2026
Personal Finance
Current price of oil as of July 1, 2026
By Joseph HostetlerJuly 1, 2026
12 hours ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.