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Samsung Wins Order Denying Apple Request for U.S. Sales Ban

Published December 17, 2012 9:20 pm

This is an archived article that was published on sltrib.com in 2012, and information in the article may be outdated. It is provided only for personal research purposes and may not be reprinted.

Samsung Electronics Co. won a court order rejecting a permanent U.S. sales ban on 26 of its devices sought by Apple Inc. following a jury verdict in August finding infringement of six of the iPhone maker's patents.

Apple sought to block U.S. sales of 26 Samsung products, only three of which Samsung says are still being sold: the Galaxy S II by T-Mobile, Galaxy S II Epic and Galaxy S II Skyrocket. Apple failed to establish that the infringing features drive consumer demand for the products, U.S. District Judge Lucy H. Koh in San Jose, California, said in her ruling today.

"Samsung may have cut into Apple's customer base somewhat, but there is no suggestion that Samsung will wipe out Apple's customer base, or force Apple out of the business of making smartphones," Koh said. "The present case involves lost sales –- not a lost ability to be a viable market participant."

Newer smartphones made by both companies, including Samsung's Galaxy S III and the iPhone 5, already have been added to a related lawsuit in which Apple and Samsung accuse each other of copying products. That case is also before Koh and is scheduled for trial in 2014.

Apple, the world's most valuable company, argued Samsung bet that the benefits of using intellectual property from the iPhone and iPad would outweigh the money damages the jury awarded.

In a second order today, Koh denied Samsung's motion for a new trial because of allegations regarding the jury's foreman.

The companies are engaged in court battles worldwide to dominate a smartphone market estimated last year by Bloomberg Industries to be $219 billion. Further appeals of today's ruling are expected.

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

—With assistance from Karen Gullo in San Francisco and Joe Schneider in Sydney. Editors: Peter Blumberg, Stephen Farr

To contact the reporter on this story: Joel Rosenblatt in San Francisco at jrosenblattbloomberg.net

To contact the editor responsible for this story: Michael Hytha at mhythabloomberg.net