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US Court Bans Sale of Samsung Galaxy Tab 10.1

A federal court in California has ordered {complink 4751|Samsung Electronics Co. Ltd.} to stop selling one version of its Galaxy Tab 10.1, because the continued sale of the device could cause “irreparable harm” to {complink 379|Apple Inc.}. 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, {complink 12925|Motorola Mobility Inc.}, 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.

Galaxy Tab Injunction Ruling

26 comments on “US Court Bans Sale of Samsung Galaxy Tab 10.1

  1. Himanshugupta
    June 27, 2012

    I read this news in some newsites and was curious to find more about the ruling. The most i could get was similar to what is reported here. But i did not read about the possible effects on Samsung's tablet business. 

    Thanks Bolaji for adding that there will be little impact on Samsung's business. But will this affect in any way the ongoing patent battle between Apple and Samsung? Is it Apple 1 – Samsung 0 for the time being?

  2. Ashu001
    June 27, 2012

    Himanshu,

    Frankly speaking;it wont have much effect on Samsung's Tablet Business.

    Primarily because the Latest version of the Tablet is unaffected by this Ban.

    What it will most definitely do is increase Bad Blood between Apple and Samsung even further.

    Which means costlier litigation and more expensive products (with delays) for all concerned.

    Regards

    Ashish.

  3. Ashu001
    June 27, 2012

    Bolaji,

    I am convinced this Ban is beyond Futile-Its Useless.

    How are these Judges gonna ban something Globally?

    What is to stop an American hopping across the Border to Canada/Mexico to buy one of these Banned Tablets?

    Every year,thousands of Americans go to Europe and Asia for Tourism;what's to stop them from coming back with a Banned Tablet piece?

    What about getting them shipped across by Courier?

    At the sametime,since Samsung has already modified their latest Tablets so that they don't infringe on any patents;Its nothing but a symbolic victory for Apple.

    Nothing more,Nothing less.

    Regards

    Ashish.

  4. bolaji ojo
    June 27, 2012

    Himanshugupta, It's a paper tiger win for Apple. Nothing has changed in the marketplace where the winner and loser will be decided. Apple scored a win that won't move market share. It made its point but the offending device is not a game changer for either company.

  5. bolaji ojo
    June 27, 2012

    Ashish, It's a symbolic win for Apple. The legal wrangling will mainly benefit the lawyers in most likelihood. I think Apple felt it needed to make this case, though, and the win may also stop Samsung and other competitors blatantly “copying” future Apple designs. That may be the main lesson from here for the competitors.

  6. Ashu001
    June 27, 2012

    Bolaji,

    It tells you how silly the Entire Legal System has become[Both in the US as well as Overseas].

    Now if the Judge would have done something Big-Like putting an injunction on all Samsung Tablets till the  Patent Breach is rectified,then I would have said its a Massive Strategic Win for Apple.

    Right now,it just keeps Lawyers on both sides Busy.

    And ensures that The Patent War gains further steam and consequently increases the Barriers to entry for new competitors in this business-Thereby harming consumers in the long-run.

    Regards

    Ashish.

  7. elctrnx_lyf
    June 27, 2012

    I think this fight is going to be a never ending one. But surely Samsung is creating tremors in apple family and they can over take apple if continue to show the same momentum.

  8. Taimoor Zubar
    June 27, 2012

    It's indeed going to be a long fight but I think Samsung did the right thing by making changes in the design and releasing the other version. It's a very smart move which would prevent Samsung from facing inventory shortages and other damages.

  9. Taimoor Zubar
    June 27, 2012

    Now if the Judge would have done something Big-Like putting an injunction on all Samsung Tablets till the  Patent Breach is rectified,then I would have said its a Massive Strategic Win for Apple.”

    @Ashish: Yes, that would have been a massive win for Apple if the judge had given that judgement. However, I think it's fair that the court only put a restriction on the model that had issues. It would be a bit unfair to Samsung if the entire Galaxy series was banned.

  10. SunitaT
    June 28, 2012

    What is to stop an American hopping across the Border to Canada/Mexico to buy one of these Banned Tablets?

    @tech4people, nothing will stop American hopping across the Border to Canada/Mexico to buy one of these Banned Tablets but what about those people who dont have the opportunity to travel abroad and buy one of these tablets ? I am sure there are many people who are android fans and will miss buying this tablet because of court ban.

  11. SunitaT
    June 28, 2012

    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 ?

  12. Ashu001
    June 28, 2012

    Tirlapur,

    That's the funny part!

    Apple continues to use Samsung Chipsets on their Iphones and Ipads!!!

    These guys both just know how to keep their Lawyers Busy!!!!

    Regards

    Ashish.

     

  13. Ashu001
    June 28, 2012

    Tirlapur,

    I don't think so.

    How are you going to implement this Ban on places like Ebay,Amazon and many of the Smaller Online Retailers???

    Another example,whats to stop someone from going on Amazon.uk[Their UK Website] and buying something and having it delivered to the US???

    If you are a creative thinker;the possibilities are End-less!!!

    Cheers

    Ashish.

     

  14. Ashu001
    June 28, 2012

    Yeah Rich!

    As I had said earlier this is just a technique to Keep Lawyers(& the judges) on both sides busy.

    Nothing more,Nothing Less!!!

    Kind of a High Prize to pay for a Largely Symbolic Victory.Ain't it?

    Regards

    Ashish.

  15. Ashu001
    June 28, 2012

    Taimoor,

    Trust me on this one.Judges have done stupider things in the past and will continue to do them in the future!

    Ashish.

  16. Ariella
    June 28, 2012

    @Ashish, yes, just when you think things can't get any more ridiculous, they do.

  17. Himanshugupta
    June 28, 2012

    @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.

  18. Houngbo_Hospice
    June 28, 2012

    @Rich,

    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?

  19. Houngbo_Hospice
    June 28, 2012

    @tech4people

    “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. 🙂

  20. Houngbo_Hospice
    June 29, 2012

    @Rich,

    “Remember, join Nokia, and live in peace.”

    Wow!, That is quite a strong stand. Are you really sure “ Nokia will have absolute power over other smartphone companies “? 

  21. stochastic excursion
    June 29, 2012

    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.

  22. stochastic excursion
    June 29, 2012

    Yes, lawyers and doctors are scholars who happen to like nice cars–but I wouldn't hold that against the entire profession!

  23. ahdand
    June 30, 2012

    Why is tht ? A market threat or an illegal security issue in it ?

  24. bolaji ojo
    June 30, 2012

    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 . . .

  25. SunitaT
    June 30, 2012

    These guys both just know how to keep their Lawyers Busy!!!!

    @tech4people, well said :). I am sure Apple is feeling threatened now because Samsung is giving tough competition to Apple in smartphone segment.

  26. SunitaT
    June 30, 2012

    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%.

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