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District Court Blocks Galaxy Nexus Sales In The US

July 1, 2012

redOrbit Staff & Wire Reports – Your Universe Online

A federal judge has temporarily banned the sale of the Galaxy Nexus smartphone in the United States pending the settlement of a patent lawsuit between the device’s manufacturer, Samsung, and rival Apple.

According to a Saturday article by John P. Mello Jr. of PCWorld, Judge Lucy Koh ruled Friday that the phone could not be sold in the US until a settlement is reached. She declared that the iPhone manufacturer had clearly demonstrated that they would suffer irreparable harm from sales of the phone.

“Although Samsung will necessarily be harmed by being forced to withdraw its product from the market before the merits can be determined after a full trial, the harm faced by Apple absent an injunction is greater,” Koh, a San Jose, California District Court Judge, said in her ruling, according to Bloomberg‘s Joel Rosenblatt and Adam Satariano. “Apple´s interest in enforcing its patent rights is particularly strong because it has presented a strong case on the merits.”

The ruling came three days after Koh also blocked sales of Samsung’s Galaxy Tab 10.1 tablet computer, but it comes at a cost to Apple. As both Mello and PCMag‘s Chloe Albanesius explained, the Cupertino, California-based corporation must post $96 million in bond in order to have the Nexus pulled from the market. Should Koh’s decision ultimately be reversed, that money will go to Samsung for losses incurred while the device was off the market.

“It´s a big deal,” Carl Howe, an analyst with Boston-area technology research firm Yankee Group, told Bloomberg.

“Samsung is perhaps the best and most successful challenge to Apple in the smartphone business, so to win an injunction against your biggest competitor is pretty profound,” Howe said, adding that the injunction against the Nexus, as well as the one against the Galaxy Tab, “does imply that there will be problems for Samsung.”

In an emailed statement, Samsung spokesman Adam Yates said that the company was “disappointed” with the verdict, which they said would “restrict U.S. consumer choice in the smartphone market.” Yates added that the company planned to “take all available measures, including legal action, to ensure the Galaxy Nexus remains available to consumers.”


Source: redOrbit Staff & Wire Reports - Your Universe Online



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