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Judge Slashes Apple's $1 Billion Award in Samsung Case

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Apple had a major setbackin its ongoing patent battle with Samsung Electronics on Friday, as a federal judge slashed a $1.05billion jury award by more than 40 percent and set a new trialto determine damages.

Apple won the award last year against Samsung in what wasthe biggest and highest profile trial among a number of legalchallenges around the world over mobile patents.

The ruling by Judge Lucy Koh of the U.S. District CourtNorthern District of California in San Jose means the two mobileelectronics companies may once again square off in a Californiacourt to decide how much of the $450.5 million stricken from thedamages associated with 14 Samsung products should stand.

Koh said the jury had incorrectly calculated part of thedamages and that a new trial was needed to determine the actual,final dollar amount, which could be less than or more than theoriginal $450.5 million set by the jury.

The iPhone maker convinced the jury that the Korean company,which in 2012 knocked Apple off its perch atop the globalsmartphone market, had infringed on its iPhone and iPad patents.

On Friday Koh, rejecting Apple's motion for an increase inthe jury's damages award, ordered a new trial on damages for the14 devices, which include the Galaxy SII. The jury's award toApple for 14 other separate products, totaling almost $599million, was maintained.

"The court has identified an impermissible legal theory onwhich the jury based its award and cannot reasonably calculatethe amount of excess while effectuating the intent of the jury,"Koh said in her ruling.

Apple and Samsung account for 1 in 2 mobile phones sold.They also rely on each other for components and business.

Their legal tussle has been viewed as a proxy war betweenApple and Google as Samsung's flagship Galaxysmartphones and tablets run on Google's Android operatingsystem.

Shares in Apple closed down 2.5 percent at $430.47.