Bloomberg News

Apple Seeks Ban on Sales of Eight Samsung Phones in U.S.

August 27, 2012

Apple Seeks Ban on Sales of Eight Samsung Phones in U.S.

The Samsung Electronics Co. Galaxy S III smartphone at the company's Galaxy Zone showroom in Seoul. Photographer: SeongJoon Cho/Bloomberg

Apple Inc. (AAPL:US), which won more than $1 billion after a jury found Samsung Electronics Co. (005930) infringed six of seven patents for its mobile devices, sought a ban on eight models of the South Korean company’s smartphones, including its Galaxy S devices.

Apple, in a court filing, urged U.S. District Judge Lucy Koh, who presided over the four-week trial in San Jose, California, to ban the sales of the Galaxy S 4G, S2 AT&T, S2 Skyrocket, S2 T-Mobile, S2 Epic 4G, S Showcase, the Droid Charge and the Prevail.

Samsung shares fell the most in almost four years in Seoul trading today following the Aug. 24 verdict. Suwon, South Korea- based Samsung may have to delay the release of new devices to change their designs, as it seeks to compete with Apple’s new iPhone and possibly a smaller iPad, said Chang In Whan, president of Seoul-based KTB Asset Management Co.

Cupertino, California-based Apple won a ban on U.S. sales of Samsung’s Galaxy Tab 10.1 tablet in June that the South Korean company said wouldn’t have a significant impact on its business. Samsung sought on Aug. 26 to have the ban lifted after the jury found the company’s tablet computer didn’t infringe the Apple design patent on which the June 26 court-ordered sales ban was based. The jury instead found that the Galaxy Tab 10.1 infringed three of Apple’s software patents.

Koh hasn’t ruled on Samsung’s request and scheduled a hearing next month to consider Apple’s request to extend the ban to other Samsung products.

Adam Yates, a spokesman for Samsung, didn’t immediately respond to an e-mail request for comment.

Smartphone Market

Apple won less than half of what it sought in damages in the first lawsuit to go before a U.S. jury in the fight to dominate the global smartphone market, though Koh may later triple the damages against Samsung under federal law. Samsung avoided a finding of damages for antitrust law violations or breach of contract.

The injunction will probably be more important than the monetary damages award Mark Lemley, a Stanford Law School professor, said in an e-mail following the verdict.

“The real question is whether this is enough to derail the momentum the Android ecosystem has gained in the marketplace,” Lemley said.

Samsung has used Google Inc. (GOOG:US)’s Android free operating system to build phones that propelled it to the number one spot in the phone market

The nine-member jury rejected Samsung’s patent counterclaims against Apple, the world’s largest company by market capitalization, and its request for damages. The jury also determined that all of Apple’s patents at stake in the trial were valid. Apple also won findings that Samsung devices diluted the value of its so-called trade dress, or how a product looks.

Samsung Appeal

Samsung said in an e-mailed statement it will ask the judge to reverse the verdict. If Koh doesn’t overturn the award, Samsung said it will appeal.

The “verdict should not be viewed as a win for Apple, but as a loss for the American consumer,” Samsung said. “It is unfortunate that patent law can be manipulated to give one company a monopoly over rectangles with rounded corners, or technology that is being improved every day by Samsung and other companies.”

The Korean company generated 16 percent of its revenue in the Americas as of June 30, according to data compiled by Bloomberg.

The verdict is the largest jury award of the year, according to data compiled by Bloomberg. The verdict is the fourth-largest jury award in a patent case in U.S. history.

The case is Apple Inc. v. Samsung Electronics Co. Ltd., 11- cv-01846, U.S. District Court, Northern District of California (San Jose).

To contact the reporters on this story: Joe Schneider in Sydney at jschneider5@bloomberg.net; Joel Rosenblatt in San Francisco at jrosenblatt@bloomberg.net

To contact the editor responsible for this story: Michael Hytha at mhytha@bloomberg.net


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