Judge Rejects Apple Request to Ban Samsung Phones, Tells Samsung “No New Trial”

Andrew Klips |

The slugfest between phone making stalwarts Apple, Inc. (AAPL) and Samsung Electronics Co. raged on Monday with both companies taking uppercuts as U.S. District Court Judge Lucy Koh handing down rulings denying motions by each.

Judge Koh denied Apple’s request for a ban on some Samsung Electronics Co. phones as part of the high-profile patent infringement case between the two phone makers.

Apple’s request stemmed for a jury decision in August that found Samsung had infringed on six of Apple’s patents; awarding Apple more than $1 billion in damages. The patents included designs and popular touch features such as zoom control and scrolling. South Korea-based Samsung plans to appeal the decision.

Upon winning the case, Apple filed for a ban of 26 Samsung phones from U.S. stores.

“Apple’s evidence does not establish that any of Apple’s three design patents cover a particular feature that actually drives consumer demand,” explained Judge Koh in her decision against an injunction. Judge Koh further said that Apple did not prove that the infringement hampered iPhone sales enough to warrant a ban.

“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," she said.

Separately, Judge Koh ruled against Samsung’s motion for a new trial. Samsung contested jury misconduct, citing that jury foreman Velvin Hogan failed to disclose involvement in a previous case with Seagate Technology Inc. (STX).

Judge Koh is also supposed to be delivering a ruling on the massive award of damages to Apple. Apple wants the amount increased substantially, while Samsung wants it greatly lowered. As of Monday evening, no order was issued pertaining to the damages.

Apple and Samsung have taken their fight over patents throughout the world. In the U.S., the August decision went Apple’s way, but in other countries, such as the United Kingdom, the rulings have favored Samsung.

Shares of Apple, Inc. (AAPL) have plunged roughly $200 per share since hitting all-time highs of $701.86 in September. Shares rallied on Monday from nine-month lows to help lead the tech-rich Nasdaq exchange higher by 39.27 points (+1.32%) as part of a broad market rally that saw the Dow and S&P 500 also notched gains around 1 percent. Serving as a catalyst was a report from the Cupertino, California-based tech beast that showed iPhone 5 sales in China exceeded two million units in the first weekend of sales.

Despite the nosedive from highs, shares of Apple are still up about 34 percent in the last 52 weeks.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer

Companies

Symbol Name Price Change % Volume
AAPL Apple Inc. 114.07 1.95 1.74 20,765,172
IR Ingersoll-Rand plc (Ireland) 77.90 -0.85 -1.08 780,776
STX Seagate Technology 38.97 -0.26 -0.66 2,338,323

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