A federal court in California has ordered Samsung Electronics Co. Ltd. (Korea: SEC) to stop selling one version of its Galaxy Tab 10.1, because the continued sale of the device could cause "irreparable harm" to Apple Inc. (Nasdaq: AAPL). The decision handed down Tuesday followed an appellate court's ruling that the lower court had erred in denying Apple's request for an injunction banning the sale of the Samsung device.
A string of patent suits have consumed the electronics industry, particularly the wireless handset and tablet PC sectors, over the last three years. Many of the industry's leading players, including Apple, Google, HTC, Motorola Mobility Inc. (NYSE: MMI), and Nokia, are battling in courts worldwide over alleged patent violations. Though Apple scored a definite win with the latest ruling, it is still locked in battles over similar issues in Europe and Asia. This month, another US court tossed out a patent suit Apple had filed against Motorola Mobility.
In the ruling issued Tuesday (which you can read at the bottom of this post), the US District Court for the Northern District of California cited a ruling it had made in December "that Apple had established that the Samsung Galaxy Tab 10.1 likely infringed upon the D'889 Patent, and that Apple was likely to suffer irreparable harm as a result of Samsung's infringing conduct." In December, the court did not order a ban, because it believed the patent filed by Apple "was likely invalid based on several prior art references." The appellate court reversed that decision.
However, Apple doesn't have much to celebrate with this win. Samsung has already modified the Galaxy Tab 10.1 and has introduced an update called the Galaxy Tab 2 10.1. The latest ruling does not affect the new device. Also, according to reports, the ruling does not expressly call for a recall of the Galaxy Tab 10.1, so retailers could continue selling their inventory. Furthermore, the ban would go into effect only after Apple posts a bond worth $2.6 million, which would "secure payment of any damages sustained by defendant if it is later found to have been wrongfully enjoined."
The presiding judge, Lucy H. Koh, disagreed with Samsung's contention that it could suffer as a result of the ban. She had previously ruled that the Galaxy Tab 10.1 was "substantially similar" to the iPad and therefore infringed upon it. She also wrote in the latest ruling:
Although Samsung will necessarily be harmed by being forced to withdraw its product from the market before the merits can be determined after a full trial, the harm faced by Apple absent an injunction on the Galaxy Tab 10.1 is greater...
Samsung's argument that its business relationships would be damaged by an injunction rings hollow. As explained above, "one who elects to build a business on a product found to infringe cannot be heard to complain if an injunction against a continuing infringement destroys the business so elected."... Samsung cannot be heard to complain about broken business relationships that it has established on infringing products.
How are you going to implement this Ban on places like Ebay,Amazon and many of the Smaller Online Retailers???
@tech4people, I am not sure if its a good idea to buy goods from other countries. For example in India if you order products from US, the products are taxed so heavily that the cost of the product jumps by nearly 30-70%.
Rich, Don't knock lawyers. You may in future need one of them to get you out of a problem you didn't know could possibly happen.
They created patent laws through their lawyer buddies in Congress, then they sniff out violators, through their buddies working as inhouse counsels, then they file briefs directly and get another lawyer in some robe to decide winners and losers. Then they file appeals . . .
By the time all these disputes land in front of the master lawyers -- those ones in even funnier robes at the Supreme Court who we cannot sack and whose verdicts are infallible and who may fall asleep during hearings because they are octogenarians -- the patents are no longer relevant or it's been made redundant by some new discoveries. The Supremes themselves may not decide the matter, though. They may just send it back to a lower court to rule on some funny part of the law. The cycle continues . . .
"Are you really sure 'Nokia will have absolute power over other smartphone companies'?"
Absolutely.
We've tried the so-called free market, and the only thing we have to show for it is unbearable loss of face for a once-proud cellphone maker, descendent of a once-proud networking company, spawn of a once-proud rubber galoshes maker, and relative to a once-proud electric power company, and once-proud wood pulp company.
This must stop.
As we all know, the only alternative now is cellphone fascism. That and maybe a merger with RIM. And a takeover by Microsoft. And maybe a good going-over with Finnish Finish, the new wood cleaner and preservative that is really adding to that midnight sun glare that is so popular in Finland.
Diversity and free enterprise seem to be our best bet here. When the competition is as fierce as it is now in this market, people are sure to push the envelope ethically and legally. Sometimes you have to call in the lawyers to at least try to keep everybody honest.
"But my question is why only the US and not in other countries?"
I don't know the specifics of this particular case. Without any other knowledge, I have to respect the decision of the court.
However, and unfortunately, it does seem that some judges in the US swear their oath of office on a management textbook. Or, as in the following case, a book on organized crime:
So, the point is that it is always healthy to maintain a strong sense of skepticism regarding authority. Not that Samsung or Apple are automatically good or bad as a result of this case.
Now, if you want to know about a company that was born without sin, take a look at Nokia. That company is destined to ascend the stairs of the temple and rule benevolently over us all. Empowered with Windows, and with their new CEO, Klaatu (Klaatu is a Finnish name), Nokia will have absolute power over other smartphone companies. Here is CEO Klaatu, speaking bluntly:
EBN Dialogue enables and encourages you to participate in live chats with notable leaders and luminaries. Not only editors and journalists, but the entire EBN community is able to comment and ask questions. Listed below are upcoming and archived chats.
Archived Dialogues
Thailand Stages a Comeback Join EBN contributor Jennifer Baljko on Thursday August 23, 2012, at 11:00 a.m. EST for a live chat on how electronic manufacturers in Thailand have shored up their supply chain to reduce the impact of future natural disasters.
Euro-Crisis: What It Means for High-Tech Firms Join EBN Editor in Chief Bolaji Ojo and Contributing Editor Jennifer Baljko on Thursday, July 12, at 10:00 a.m. EDT for a Live Chat on high-tech and Europe's economic difficulties.
Microsoft Surface: Potential Winners & Losers What are the implications for the electronics industry supply chain of Microsoft Corp.'s decision to launch its own tablet PC? Join industry veteran and EE Times' systems and OEM expert Rick Merritt on Tuesday, July 3, at 12:00 pm EDT for a Live Chat on this subject.
Join EBN contributor Jennifer Baljko on Thursday August 23, 2012, at 11:00 a.m. EST for a live chat on how electronic manufacturers in Thailand have shored up their supply chain to reduce the impact of future natural disasters.
Peter Drucker famously said "Trying to predict the future is like trying to drive down a country road at night with no lights while looking out the back window." Yet in the razor's-edge world of electronics—with a lean supply chain and just-in-time demands—the need to know the future is vital.
You've heard the saying "the No. 1 supply chain risk is your people." That hasn't always been the case. But today's complex global supply chain requires a new type of multitalented employee. It's one who understands, finance, marketing, economics, is savvy with technology, graceful with relationships and can think analytically.
Where are these people? Are universities properly preparing the next generation supply chain professionals? How do train your existing workforce for these new, demanding positions?
Brian Fuller, editor-in-chief of EBN, will lead a 60-minute Avnet Velocity panel discussion that will ask and answer these and other questions swirling around today's supply-chain talent challenges.
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