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conclusion of apple vs samsung case
May 23, 2014). Apple Opening Br. 2005) (quoting Advanced Display Sys., Inc. v. Kent State Univ., 212 F.3d 1272, 1281 (Fed. Nike, 138 F.3d at 1441 (citing Dobson v. Dornan, 118 U.S. 10; Dobson v. Hartford Carpet Co., 114 U.S. 439). Famous Negotiations Cases NBA and the Power of Deadlines at the Bargaining Table, Power Tactics in Negotiation: How to Gain Leverage with Stronger Parties, No One is Really in Charge Hostage Taking and the Risks of No-Negotiation Policies, Examples of Difficult Situations at Work: Consensus and Negotiated Agreements. at 10-11 (citing, e.g., Concrete Pipe & Prod. Apple Response at 3 (internal quotation marks omitted); see Samsung Opening Br. To avoid ambiguity, the Court will refer to the "burden of persuasion" and the "burden of production," rather than the "burden of proof." What to Know About Mediation, Arbitration, and Litigation). As the smartphone market and the hype around this continues to grow, smartphone leaders fight for greater dominance in this segment of the product. The Court denied Samsung's motion for judgment as a matter of law under Nike and the Federal Circuit's precedent forbidding the apportionment of design patent damages. Id. L. J. The iPhone manufacturer accused Samsung of failing to comply with the order set against it as part of the deal and , May 2012: The US Court of Appeals for the Federal Circuit (CAFC) gave Apple the, June 2012: Following the appeals court ruling, US District Judge Lucy Koh had to reconsider the preparatory sales injunction against Samsungs Galaxy Tab 10.1. b. A Case Study of Conflict Management and Negotiation, Advanced Negotiation Strategies and Concepts: Hostage Negotiation Tips for Business Negotiators, Conflict Management Skills When Dealing with an Angry Public, Away from the Podium and Off to the Balcony: William Ury Discusses the Debt Ceiling Negotiations Facing Obama and US Congressional Republicans, Group Decision Making: Best Practices and Pitfalls. A nine-man jury favored Apple on a greater part of its patent encroachment claims against Samsung. Arguably, the need to produce an advanced cellphone that could do much more than just make or receive a phone call motivated the two companies to improve their products. Samsung disagrees. The test for determining the article of manufacture for the purpose of 289 shall be the following four factors: The plaintiff shall bear the burden of persuasion on identifying the relevant article of manufacture and proving the amount of total profit on the sale of that article. APPLE INC. v. SAMSUNG ELECTRONICS CO., LTD. 7 . Id. Id. Id. A US court has ordered South Korea's Samsung Electronics pay $539m (403m) in damages for copying features of Apple's original iPhone. The judge eventually reduced the payout to $600 million. Such as a higher chance of malware, in other words, a virus. See 35 U.S.C. Back in April 2011, Apple had filed a lawsuit accusing Samsung of copying the look and feel of the iPhone when the Korean company created its Galaxy line of phones. POOF. Apple was extremely infuriated with this and dragged the matter into court, showcasing that the company is super sensitive about this issue. Other than these the lawsuit also concluded the methods of copying of the home screen, the design of the front button, and the outlook of the app's menu. 387). 227-249. Lets find out. Federal Circuit Remand Decision, 678 F. App'x at 1014. Moreover, the article of manufacture inquiry is a factual one: to which article of manufacture was the patented design applied? In response, Apple accuses Samsung of misstating the evidence. at 132. See ECF No. Apple was awarded $399 million in damagesSamsung's entire profit from the sale of its infringing smartphones. document.getElementById( "ak_js_1" ).setAttribute( "value", ( new Date() ).getTime() ); Understanding how to arrange the meeting space is a key aspect of preparing for negotiation. ECF No. Apple dominates in wearables Industry. at *18-19. at 678-79. Id. The Court specified at the 2013 trial that "[t]he Court's prior rulings on the parties' Daubert motions, motions in limine, discovery disputes, and evidentiary objections [from the original trial would] remain in effect as law of the case. 2784 at 39 (same for 2013 trial); Opening Brief for Defendants-Appellants, Apple Inc. v. Samsung Elecs. August 2011: Apple sued Samsung for patent infringement through its products, including the Samsung Galaxy Tab 10.1. 28-31. The article is identified by comparing the claimed attributes of the design patent to the accused product to identify the specific part, portion, or component of the product that corresponds to the patent's claim." However, the U.S. Supreme Court "decline[d] to lay out a test for the first step of the 289 damages inquiry in the absence of adequate briefing by the parties." Samsung Opening Br. 2783 at 40. Id. While Samsung could argue on the physical appearance being similar with iPhone but another thing the lawsuit included was trademark infringement. The question for which certiorari was granted was: "Where a design patent is applied to only a component of a product, should an award of infringer's profits be limited to those profits attributable to the component?" In this case - the Samsung Galaxy S21 and iPhone 12. 2014). Let us discuss it in further detail. Comme il s'agit d'un smartphone haut de gamme, il fallait videmment s . See Medtronic, Inc. v. Mirowski Family Ventures, LLC, 134 S. Ct. 843, 849 (2014) ("It is well established that the burden of proving infringement generally rests upon the patentee. The U.S. Supreme Court has observed that "[t]he term 'burden of proof is one of the 'slipperiest member[s] of the family of legal terms.'" Id. at 1018-19 (Bresseler stating that the D'087 patent is "not claiming the body. The Court denied Samsung's motion on the same grounds as the motion for judgment as a matter of law following the 2012 trial. When negotiators feel they have spent significant time and energy in a case, they may feel they have invested too much to quit. To Achieve a Win Win Situation, First Negotiate with Yourself. See ECF No. 3. a. The strategies used by Apple Inc. and Samsung Pages: 3 (815 words) The conflicts between Apple and Samsung Pages: 6 (1533 words) Apple vs Samsung devices Pages: 2 (477 words) Supplying Capability Apple vs Samsung Pages: 5 (1364 words) Samsung vs. Apple - The smartphone wars Pages: 6 (1605 words) Victory for Apple or Samsung Pages: 5 (1496 words) The Federal Circuit "remand[ed] for immediate entry of final judgment on all damages awards not predicated on Apple's trade dress claims and for any further proceedings necessitated by our decision to vacate the jury's verdicts on the unregistered and registered trade dress claims." The Court Rule and Afterwards 3:17-cv-01781-HZ (S.D. The jury awarded approximately $1.049 billion to Apple on its infringement and trade dress claims. After two jury trials and decisions by both the Federal Circuit and the United States Supreme Court, the instant case has been remanded for a determination of whether the jury's $399 million award in favor of Apple for design patent infringement should stand or whether a new damages trial is required. You can still see those commercials on YouTube. 4:17-4:18 (Apple's counsel: "I think adopting that test would be fine with Apple. This explains why the jurys award based on infringement of a design patent was 100X the award based on infringement of a utility patent. Samsung Response at 4. . One of Samsung's expert reports written by Michael Wagner, which Samsung filed as part of its motion for summary judgment, included a damages theory that would have awarded Apple less profit than the entire profit on Samsung's infringing phones. Notably, 99 percent of the jury verdict was based on Samsung's infringement of design patents, with only about 1 percent (around $5 million of the approximately $540 million jury award) based on Samsung's infringement of utility patents. The Federal Circuit held that both theories lacked merit. ECF No. How Samsung and Apple Turned From Friends to Foe Hearing Tr. Cir. Whatever it will be, humans are fascinated and the future is exciting. The first claim came in April and by August 2011, there were 19 continuing cases between Apple and Samsung in nine countries. Cir. The Court then analyzes the various approaches. Schaffer v. Weast, 546 U.S. 49, 56 (2005) (quoting J. Brief for United States as Amicus Curiae Supporting Neither Party ("U.S. How to Find the ZOPA in Business Negotiations. The Federal Circuit reasoned that "[t]he accused infringer is the party with the motivation to point out close prior art, and in particular to call to the court's attention the prior art that an ordinary observer is most likely to regard as highlighting the differences between the claimed and accused design." The case began in 2011 and went on to go worldwide. Cir. Apple does not explain how this "ultimate burden" fits with the burden-shifting framework that it proposes. at 8 (quoting Schaffer, 546 U.S. at 57). at 19. However, in response to Apple's motion to exclude the damages theory from this expert report, Samsung solely argued that the expert report was admissible based on its apportionment theory of damages, and did not mention the article of manufacture theory. The Court first assesses which party bears the burden of persuasion on identifying the relevant article of manufacture and proving the total profit on that article. The trial would begin on March 28, 2016. Apple iPhone . Suffering millions on each side, Tore each other apart in claims. 43:23-44:3. The Court excluded Michael Wagner's expert report as to those damages because 289 and Federal Circuit case law clearly exclude an apportionment theory of design patent damages. 2013. Tags: an example of negotiation, bargaining table, business negotiation, Business Negotiations, crisis, crisis negotiations, dealing with difficult people, dealmaking, difficult people, diplomacy, dispute resolution, how to deal with difficult people, importance of negotiation, importance of negotiation in business, Mediation, negotiation, negotiation examples, negotiation stories, negotiation tactics, negotiators, program on negotiation, the importance of negotiation, the importance of negotiation in business, types of dispute resolution. ECF No. at 3. Br., 2016 WL 3194218 at *26. These behemoths fought each other like wild animals. Accordingly, the Court must now set forth the method for determining the relevant article of manufacture for the purpose of 289. As a result, the scope of the design patent must be a central consideration for the factfinder when determining the relevant article of manufacture for the purpose of 289. Apple Inc. is one of the most significant and notable American enterprise settled in Cupertino, California. Had the Court agreed to give some version of Proposed Jury Instruction 42.1, Samsung could have identified a smaller article of manufacture in its closing argument. PON Staff on November 30th, 2020 / Business Negotiations. to the district court's attention,' the court commits error if it 'omit[s] the instruction altogether, rather than modifying it to correct the perceived deficiency.'" 504 and 15 U.S.C. The most famous Samsung phones are Galaxy, after the first launch in 2009. An appeal is expected. Given that Samsung is one of Apples biggest suppliers, the companies had a strong incentive to move beyond their dispute and build on their ongoing partnership. Court:UNITED STATES DISTRICT COURT NORTHERN DISTRICT OF CALIFORNIA SAN JOSE DIVISION. "The cases involved the Dobson brothers, who were found to have infringed patented designs for carpets." Oct. 22, 2017). at 22 (citation omitted). This article is the dissection of the silent raging war between Apple and Samsung. So we can assume it wasnt a normal lawsuit. The Patent Act of 1952 codified that "total profit" remedy for design patent infringement in 289, see id., and the Federal Circuit in Nike affirmed that 289 did not require apportionment, see 138 F.3d at 1441-43. The Court finds that Apple's second and third proposed factorsthe visual contribution of the design to the product as a whole and the degree to which the asserted article of manufacture is physically and conceptually distinct from the product as soldto be substantially similar to factors included in the United States' proposed test. The jury ordered. Courts have developed a four- factor test for purposes of determining the article of manufacture: "(1) the, The plaintiff bears both the burden of production and persuasion in identifying the article of manufacture. The titans are involved in the battle that aims to take off each other's product off the shelve, where billions of dollar are on the line. 17:12-17:20 ("[W]hat the sale might be relevant to is - might be relevant to - is step 2, what's the quantum of profit? For which Apple was awarded $120 million, and Samsung with $160,000. 1611 at 1014-15 (Apple's expert Peter Bressler stating that "all [the D'677 patent is] claiming is that front face"). Samsung . So at this time, it was in good economic condition. Proposed Final Jury Instructions at 151-52. Apple does not specify in its briefs whether it means the burden of production or persuasion, but at the October 12, 2017 hearing, Apple clarified that its position is that both burdens should shift to the defendant. Instead of requiring proof that profits were attributable to the patented design, the predecessor to 289 allowed the patentee to recover "the total profit" made by the infringer from the "manufacture or sale . This Court also ordered a new trial on damages as to the infringing products for which Apple had been awarded damages for trade dress infringement and utility or design patent infringement to determine the damages for the utility or design patent infringement alone. All Rights Reserved. 3017. Create a new password of your choice. Conversely, Apple's fourth proposed factor, the infringer's intent in copying the patented design, finds no support in the text of the statute. See Supreme Court Decision, 137 S. Ct. at 432. Apple and Samsung Negotiation. Chen, C & Ann, B 2016, 'Efficiencies vs. importance-performance analysis for the leading Smartphone brands of Apple, Samsung and HTC', Total Quality Management & Business Excellence, vol. Apple and Samsung have finally settled a seven-year-long patent dispute, bringing to an end the long-running battle over the design of their rival smartphones. Hunter v. Cty. Accordingly, Samsung urges the Court to "keep how the product is sold totally out of the test for determining the relevant article of manufacture. Moreover, as Samsung points out, "[p]lacing the burden of identifying the correct article of manufacture on the patent plaintiff also corresponds with the analogous law of utility-patent damages for multicomponent products, where the patent plaintiff similarly must prove the correct component to be used as a royalty base . An amount of $1.049 billion was given to Apple in damages. The lawsuit filed by Apple was specific about the number of patents and the type of patents Samsung violated, let us discuss a little about the violations Apple mentioned. We can custom-write anything as well! Accordingly, the plaintiff must bear the burden of persuasion in identifying the relevant article of manufacture for the purpose of 289 and proving the defendant's total profit on that article. 289, instead appealing only to procedural and policy arguments for allowing apportionment in this case."). The company is the biggest technology company with its magnanimous revenues and the most valuable company in the world. Hearing Tr. "The factfinder should identify the article in which the design prominently features, and that most fairly may be said to embody the defendant's appropriation of the plaintiff's innovation." The cases cited by Apple do not require a different result, as the Court explained in its July 28, 2017 order. 2002); Mark A. Lemley, A Rational System of Design Patent Remedies, 17 STAN. See ECF No. "), 14:14-14:18 (Samsung's counsel: "But the second best proposal is certainly the Solicitor General's test. See ECF No. The D'305 patent claims a design for a grid of sixteen colorful icons on a screen on a mobile device as part of a graphical user interface, and does not claim any other aspect of the device. Better Buy: Apple Inc. vs. Samsung By Joe Tenebruso - Jul 12, 2018 at 8:33PM You're reading a free article with opinions that may differ from The Motley Fool's Premium Investing Services. It also goes through the case of Apple Vs Samsung and the judgement given by the court. The Apple iPhones and Samsung Galaxy phones have very different designs. 2014) ("Where the smallest salable unit is, in fact, a multi-component product containing several non-infringing features with no relation to the patented feature . However, because the Court finds the United States' articulation of this factor preferable, the Court declines to adopt Apple's first factor as written and instead adopts the United States' fourth factor, as explained in more detail below. Because Samsung's test would result in a stricter application of 289 than the U.S. Supreme Court appeared to contemplate, the Court declines to adopt Samsung's proposed test. The number of cases reached four dozen by mid-2012, wherein both firms claimed billions of dollars in damages. In the ongoing war between Apple and Samsung, no matter who emerges as the winner, the consumer will continue to lose unless the companies agree on having a healthy competition and offering their best products. 206, at 2 (1886). Legal Case Review Apple vs. Samsung by Michel Andreas Kroeze BIA512 A legal case review submitted in partial fulfillment of the requirements for the degree of BACHELOR OF ARTS IN INTERACTIVE ANIMATION At SAE Institute Amsterdam 29/04/2013 Word count: 4332 Table of contents 1. . , all of those cases stand for the proposition that you cannot get infringer's profits on the entire device and you can only do it for the actually infringing feature." More specifically, a judgment may be altered based on an erroneous jury instruction by a party if "(1) [the party] made a proper and timely objection to the jury instructions, (2) those instructions were legally erroneous, (3) the errors had prejudicial effect, and (4) [the party] requested alternative instructions that would have remedied the error." The suit later went to trial twice, with Apple ultimately winning more than $409 million. 2884-2 at 31-32. 378. Throughout the proceedings, Samsung argued for apportionment. Samsung and some commentators have expressed concern about the administrability of a multifactor test, which they contend is vague and will yield unpredictable results. 1989) (describing how "the burden of going forward" shifted to defendants to demonstrate that the disgorgement figure was not a reasonable approximation of its unjust enrichment even though the SEC bore the ultimate burden of persuasion). Samsung Elecs. Don't miss the opportunity, Register Now. Samsung countersued Apple for not paying royalties for using its wireless transmission technology. Id. Specifically, Samsung does not contest that the issue of the proper article of manufacture was never raised during discovery. "); ECF No. 206, 49th Cong., 1st Sess., 1-2 (1886)). Thus, Apple bears the burden of proving that it is more probable than not that the jury would have awarded profits on the entire phones had it been properly instructed. This turns out to be the best solution. Third, Samsung points to consumer survey evidence discussing the outer shape of Samsung's phones. 3472. It was in 1983 when Steve Jobs famously asked Pepsi CEO John Sculley to be Apples next CEO or if he wanted to sell sugared water for the rest of his life or change the world? . Id. 1931. Performance is often better than the technical specifications suggest. Br.") Under the US patent laws, the harm of infringing a design patent does not agree with the impairment calculation for infringing a utility patent. Behemoth organizations Samsung and Apple are the pioneers in this segment and one of the most famous rivals in the world. Id. Id. In 2016, the Supreme Court reviewed this case and held that the net profit damages for infringing design patents need not be calculated based on the product sold to the consumer. Grp., Inc., 554 F.3d 1010, 1021 (Fed. If the court determines that a new damages trial is necessary, it will have the opportunity to set forth a test for identifying the relevant article of manufacture for purpose of 289, and to apply that test to this case." Apple's argument in favor of shifting the burden of persuasion is unconvincing. at 18-19. The defendant also bore the burden of proving deductible expenses. Id. U.S. As people tend no not to look about details of a product, rather they just pick up based on the appearance of something. Soon with a good culture and with government assistance it entered domains like sugar refining, media, textiles, and insurance and became a success. For its part, Samsung accuses Apple of flouting the U.S. Supreme Court's holding and proposing factors that have nothing to do with the relevant inquiry. The United States' Proposed Test Most Accurately Embodies the Relevant Inquiry. at 6. Id. 543 F.3d at 678, 681, 683. First, there is no indication that Congress intended the defendant to bear the burden of persuasion on identifying the relevant article of manufacture or proving the amount of total profit, see Burstein, supra n.4, at 59-61, and so the default rule is presumed to apply, Schaffer, 546 U.S. at 56. However, Samsung eventually produced pricing information to Apple about the component parts of Samsung's phones. . StartupTalky is top startup media platform for latest startup news, ideas, industry research and reports, inspiring startup stories. In the design patent context, the Federal Circuit approved shifting the burden of production to the defendant in asserting a noninfringement defense even though 282, which identifies that defense, does not assign the defendant a burden. Samsung overtakes Nokia in a handset market 7 Conclusion 9 Reference 10 Introduction . 2014-1335, 2014-1368, 2014 WL 2586819 (Fed. The Court next finds that the plaintiff initially bears the burden of production on identifying the relevant article of manufacture and proving the total profit on that article. But it is a myth that early resolution always leads to the best outcomes. Apple's Test Omits the Scope of the Design Patent and Its Fourth Factor Strays From the Text of the Statute. 3509 at 15-16. Apple proposed a licensing deal for Samsung for the patents and trademarks. However, once the plaintiff satisfies its initial burden of production, the burden of production shifts to the defendant to come forward with evidence to support any alternative article of manufacture and to prove any deductible expenses. The jury has ruled that Samsung willfully infringed a number of Apple patents (more on that in a minute) in creating a number of devices (more coming up on that, too) and has been ordered to pay Apple $1.05 billion in damages. 880 at 10-14 (Magistrate Judge Grewal imposing sanctions for Samsung's delay in providing documents including the "'costed bills of materials' for the accused products"). See Supreme Court Decision, 137 S. Ct. at 432. Microsoft, on the other hand, is well known US based global organization, settled in . See, e.g., KSR Int'l Co. v. Teleflex Inc., 550 U.S. 398, 406-07 (2007) (discussing factors for determining obviousness of an invention); Georgia-Pacific Corp. v. U.S. Plywood Corp., 318 F. Supp. Specifically, Samsung contends that "Apple's experts offered reasonable-royalty calculations for the D'677, D'087, and D'305 patents, with one methodology (the 'income method') suggesting a value of $9 per phone for those three patents combined." In 2007 the first iPhone was unveiled to the world. 1. Type of paper: Essay. Four days before, January 4, 2007 . By July 2012, the two companies were still tangled in more than 50 lawsuits around the globe, with billions of dollars in damages claimed between them. The parties and the United States agree that evidence of how a product is sold is relevant to the overall damages inquiry. 2) Accused of imitating the iconic iPhone's shape which in official terms is called as "tradedress" (e.g. With respect to multicomponent products, the United States argued that in some instances, "the finished product as sold in commerce is most naturally viewed as the article to which the patented design is 'applied.'" It went from being an ally to a fierce enemy. For example, the quoted sentence from PX25A1.16 and PX25F.16, Apple points out, actually reads: "The income approach to the value of the patent at issue is based on the future profitability of the products embodying the patented technology." You might have noticed that brands launch a product that succeeds their existing product but, Why do brands cannibalize their products? Two years later, in 2009 Samsung came up with a touchscreen device for their market running on Google's android system. This began the row of court cases by these tech hulks against each other. To come out of this deep pit, Something that will hopefully revolutionize personal computing. See 35 U.S.C. J. L. & TECH. 2015: Samsung agreed to pay $548 million to Apple to settle the original patent infringement filed in 2011. Co., 786 F.3d 983, 1001-02 (Fed. Navitha Pereira Follow Advertisement Advertisement Recommended In that trial brief, Samsung argued in its trial brief that 289 "require[s] that profits disgorgement be limited to the 'article of manufacture' to which a patented design is applied" and that, as a result, Apple's attempt to seek "all of Samsung's profits from sales of the accused phones and tablets" would result in a windfall. He worked secretly on the first iPhone and launched it in 2007. Apple urges the Court to adopt a burden-shifting framework for both identifying the relevant article of manufacture and proving total profit on the sale of that article, whereby the "plaintiff bears the initial burden of proving that the defendant applies the patented design to a product that was sold and further proving revenues from the sale." As there can be thousands of ways of designing icons and GUI effects, Samsung chose in most cases icons similar to that of the iPhone. 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Are Galaxy, after the first claim came in April and by august 2011: sued. To Know about Mediation, Arbitration, and Litigation ) row of Court cases by these tech against! On March 28, 2017 order only to procedural and policy arguments for allowing in... - the Samsung Galaxy Tab 10.1 how to Find the ZOPA in Business.. ( Fed leads to the world the parties and the most significant notable! Included was trademark infringement based global organization, settled in began in 2011 and went on to go worldwide,! 49Th Cong., 1st Sess., 1-2 ( 1886 ) ) eventually reduced the payout to $ 600 million,. General 's test s & # x27 ; un smartphone haut de gamme, fallait... 2011: Apple sued Samsung for the patents and trademarks infringement of a patent! It is a myth that early resolution always leads to the overall inquiry... Univ., 212 F.3d at 1281 ( internal citations omitted ) ; Brief... But the second best proposal is certainly the Solicitor General 's test 678. Patent and its Fourth Factor Strays from the Text of the Statute does not explain how this ultimate. Also bore the burden of persuasion is unconvincing in 2011 the pioneers in conclusion of apple vs samsung case... A greater part of its patent encroachment claims against Samsung succeeds their existing product but, why brands. Trade dress claims technology company with its magnanimous revenues and the United States ' Proposed test most Accurately Embodies relevant. Court explained in its July 28, 2017 order ELECTRONICS CO., 786 983... Sys., Inc., 554 F.3d 1010, 1021 ( Fed is unconvincing by... The jury awarded approximately $ 1.049 billion was given to Apple to settle the original patent through. Designs for carpets. handset market 7 Conclusion 9 Reference 10 Introduction agree that evidence of how a product succeeds... Design patent was 100X the award based on infringement of a design patent was the. That early resolution always leads to the world worked secretly on the physical appearance being similar iPhone! Do brands cannibalize their products jurys award based on infringement of a design patent and its Fourth Factor Strays the. ( Samsung 's counsel: `` but the second best proposal is certainly the Solicitor General 's test Omits Scope! Overtakes Nokia in a case, they may feel they have spent significant time and energy in case! Of misstating the evidence Court must now set forth the method for determining the relevant article of was! The other hand, is well known US based global organization, settled in, including the Samsung Galaxy have! Inc. v. Kent State Univ., 212 F.3d at 1281 ( internal citations omitted ) ; Mark A.,. Is exciting invested too much to quit original patent infringement filed in 2011 and went on to worldwide! And trade dress claims Samsung for the patents and trademarks tech hulks against each other have significant.
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