Sanctions For Alleged Spoliation Against Samsung Denied In Ongoing Battle With Apple By Administrative Law Judge At The ITC

In the running battle between Apple and Samsung that is playing out in courts and agencies around the world, Apple filed a motion seeking sanctions against Samsung for the alleged spoliation of evidence. Apple alleged that Samsung should be sanctioned for spoliation because Samsung deliberately failed to take institutional steps to retain or back up emails sent or received using its computer email system. Apple also alleged that Samsung had no systematic or company-wide oversight procedures in place to ensure that its employees make appropriate decisions as to which emails are relevant and responsive or to ensure that relevant and responsive emails are in fact saved to employee hard drives.

Samsung denied Apple's allegations and asserted that it began preserving documents when Apple filed its complaint and that Apple had not shown that Samsung or any of its employees destroyed relevant data after that date. Samsung also stated that even if Apple could establish that evidence was destroyed after the complaint was filed, Apple could not show that Samsung acted in bad faith or with any intent to impair Apple in its case. Samsung also noted that the majority of the accused products were released after the complaint was filed and therefore "[a]ny emails relating to Apple's claims against these products (design, copying, etc.) would have to predate their release, meaning that any documents not kept would have been deleted pursuant to Samsung's standard email retention policy. Hence, there is no basis for Apple's claim that evidence of design and development, copying, or design around has been destroyed."

The Staff opposed Apple's motion for sanctions. "The Staff argues that Apple has not sufficiently demonstrated that Samsung did not satisfy its duty to preserve evidence. The Staff notes that Samsung did distribute a timely notice to more than 2,800 potential custodians instructing them to preserve all documents relevant to this Investigation. Moreover, the Staff asserts that Samsung believes that twelve of the thirteen employees Apple alleges did not timely receive the litigation hold notice did, in fact, receive the notice of July 13, 2011 and the thirteenth employee did receive a notice later in the summer of 2011."

The Administrative Law Judge began the analysis by stating: "It is important to appreciate the possible spoliation of evidence is an...