Samsung phones cleared by US court causing Apple setback

J.K. Shin, head of Samsung Electronics Co.'s telecom division

J.K. Shin, head of Samsung Electronics Co.'s telecom division

An appeals court in the U.S. had the ban against Samsung Electronics Co. lifted according to the latest reports that were released. The ban on the Samsung Galaxy Nexus smartphone sale was lifted thereby causing a setback to Apple Inc. in the ongoing battle of the company against Google Inc. and its highly popular mobile software.

The Report:

Apple Inc. has waged wars against Google Inc. on various fronts, whose famous Android software does power most of the devices of Samsung Electronics Co. The ruling from the Court of Appeals for the Federal Circuit in the U.S. on the Samsung Galaxy Nexus smartphone sale is however not quite expected to have a deep impact on the market of the smartphones. This is simply due to the fact that the Samsung Galaxy Nexus smartphone from the Samsung Electronics Co. is quite an aging product in the long line of products of the company. This ruling however caused a setback to Apple Inc. with its stocks closing down by nearly 2% at $628.10.

The market point of view:

With the ban against Samsung Electronics Co. lifted, it would be a bit hard for the other companies who tend to sue their competitors over patents in a bid to get their products pulled out of the market. This is what Colleen Chien, who is a professor with the Law School at Santa Clara in Silicon Valley, thinks about the matter. This kind of injunctions on the sales is a key for some of the companies in their efforts to increase their advantage in the patent fights at the courtrooms. The company declined to comment to the setback to Apple Inc. while there was no response from Samsung Electronics Co. as well. Apple Inc. had incidentally registered a great legal victory on Samsung Electronics Co. in the month of August when it was awarded a sum of as much as $1.05 billion in regard for damages. In that case a jury from the U.S. found that Samsung Electronics Co. was guilty of copying some critical features of the highly popular iPad and iPhone from Apple Inc. The case against the Samsung Galaxy Nexus smartphone sale was registered by Apple Inc. sometime around the earlier part of this year.

The Judgment of the Court:

Earlier district judge Lucy Koh in the month of June had issued a pre-trial injunction on the Samsung Galaxy Nexus smartphone sale. The Federal Circuit however in its judgment had the ban against Samsung Electronics lifted and stated the fact that Koh had abused her discretion. The judgment was a setback to Apple Inc. who failed to prove their point that the Samsung Galaxy Nexus smartphone sale was due to their infringing technology. The case has now been sent back to Koh for further reconsideration by the appeals court. Samsung Electronics Co. has a whole new set of smartphones and tablets in queue to be launched just before the beginning of the holidays. According to Eric Schmidt, the executive chairman of Google Inc., their fight against Apple Inc. is in most likelihood going to define the future of the mobile industry.

Aubrey Chang
Aubrey Chang, Associate Editor Industry Leaders Magazine (www.industryleadersmagazine.com)

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