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Telegraph.co.uk

Wednesday 27 June 2012

US judge orders Samsung to stop selling Galaxy tablet in Apple row

A US judge has ordered Samsung to stop selling its Galaxy 10.1 tablet computer while the court considers Apple's patent infringement claims.

A South Korean model shows Samsung Electronics' tablet computer, the Galaxy Tab, during a launching ceremony in Seoul on November 4, 2010
Samsung sold 1.6m tablets from January to March, giving it 7.5pc of the market Photo: AFP

US District Judge Lucy Koh said Apple's lawsuit appears likely to succeed.

Samsung's Galaxy tablets, powered by Google's Android operating system, are considered by many industry experts to be the main rival to the market-leading iPad.

The ruling also comes as Samsung, a distant second to Apple in the tablet market, faces growing competition from rivals, with Microsoft and Google preparing their own tablets.

Koh had previously denied Apple's bid for an injunction on the tablet and multiple Galaxy smartphones. However, a federal appeals court instructed Koh to reconsider Apple's request on the tablet.

"Although Samsung has a right to compete, it does not have a right to compete unfairly, by flooding the market with infringing products," Koh wrote, directing that her order become effective once Apple posts a $2.6m bond to protect against damages suffered by Samsung if the injunction is later found to have been wrong.

"The relief being given to Apple here is extraordinary. Preliminary injunctions are rarely asked for and rarely granted," said Colleen Chien, a professor at Santa Clara Law in Silicon Valley.

"That this was a design patent and copying was alleged distinguish this case from plain vanilla utility patent cases. Cases involving these kinds of patents are based more on a counterfeiting theory than a competition theory, so I don't expect this case to have ramifications for all smartphone disputes, but rather those involving design patents and the kind of product resemblance we had here."

Apple has waged an international patent war since 2010 as part of its attempt to limit the growth of Google's Android system, the world's best-selling mobile operating platform. A decisive injunction in one of the US legal cases could strengthen Apple's hand in negotiating cross-licensing deals, where companies agree to let each other use their patented technologies.

Opponents of Apple, meanwhile, say the iPhone and iPad maker is using patents too aggressively in its bid to stamp out competition.

The injunction against Samsung comes less than a week after Apple suffered a serious setback when a federal judge in Chicago dismissed its patent claims against Google's Motorola Mobility unit. Judge Richard Posner ruled that an injunction barring the sale of Motorola smartphones would harm consumers.

Samsung will likely seek to appeal Koh's ruling to a federal appeals court in Washington, which has exclusive jurisdiction over intellectual property disputes.

"Apple sought a preliminary injunction of Samsung's Galaxy Tab 10.1, based on a single design patent that addressed just one aspect of the product's overall design," Samsung said in a statement. "Should Apple continue to make legal claims based on such a generic design patent, design innovation and progress in the industry could be restricted."

Apple spokeswoman Kristin Huguet reiterated a prior statement from the company, saying Samsung's "blatant copying" is wrong.

Apple sold 13.6m iPads from January to March to control 63pc of the global tablet market, according to research firm Display Search. Samsung sold 1.6m tablets, giving it 7.5pc of the market. The global tablet market is set to nearly double this year to 123.5m units this year, according to IHS iSuppli.

Microsoft last week introduced its own line of tablet computers, making a major strategic shift for the software giant as it struggles to compete with Apple and re-invent its aging Windows franchise, and Google plans to unveil a $199 tablet co-branded with Taiwan's Asustek Computer at its developer conference this week, according to a media report.

Samsung, which has various tablet line-ups with different sizes from 7 inches to 10.1 inches, introduced the Galaxy Tab 10.1 in June last year and unveiled an upgraded version, the Galaxy Tab 10.1 II, last month.

In Seoul, Samsung shares were up 2.6pc in a flat market.

Meanwhile, Apple has launched its iTunes Store in 12 Asian markets - Brunei, Cambodia, Hong Kong, Laos, Macau, Malaysia, Philippines, Singapore, Taiwan, Thailand, Sri Lanka and Vietnam.

telegraphuk
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