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.
"Kind of a High Prize to pay for a Largely Symbolic Victory.Ain't it?"
We can say that, but it is a victory nevertheless, given that Apple lawsuits in other countries haven't had that positive outcome. At least the company is "well treated" at home. :)
Whether Apple will pay that money or not, it has won a battle against Samsung in the US, hasn't it? But my question is why only the US and not in other countries?
@rich, if i understood your sarcasm correctly then i agree that 2.6 million USD is nothing for Apple but in relative terms the bond sum is a big amount.
Pretty funny: "...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.'"
What it will most definitely do is increase Bad Blood between Apple and Samsung even further.
@tech4people, true. This will definitely increase the bad blood between Apple and Samsung. I believe Apple was using samsung processors in its earlies iPhones. Is Apple still dependent on Samsung for its iPhone and iPad manufacturing ?
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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