09 December 2011

Breaking: High Court Rejects Apple Appeal Bid

Samsung has had a win today in Australia, where the High Court has refused Apple's application for 'Special Leave' to appeal from last week's decision of the Full Federal Court overturing the grant of a preliminary injunction against the launch of the Galaxy Tab 10.1 (see Samsung v Apple – A Closer Look at the Appeal Decision).

Samsung will now be free to sell its tablet in Australia, at least pending a full trial and decision in Apple's primary infringement case in the Federal Court before Justice Annabelle Bennett.  Reportedly, we should see the galaxy Tab 10.1 in Australian stores before the end of next week, for those looking to pick up a last-minute Christmas present or two!

There is, at present, no date set down for the main infringement case to be heard.  However, Samsung's counter-suit against Apple's iPhone 4S, and other 3G devices, is scheduled to be heard during March and April next year (see Samsung Drops Injunction Demands, Grabs Reins in Apple Dispute).

07 December 2011

Australian Government Improves Access to Commercialisation Grants

GrantedThe Australian Minister for Innovation, Industry, Science and Research, Senator Kim Carr, has announced changes to the governments Commercialisation Australia program which will make the grants more affordable and accessible to Australian businesses developing new products, processes or services.

From today (7 December 2011) Australian entrepreneurs will not have to repay the program’s Early Stage Commercialisation grants.  Additionally, these grants will be available to more businesses, with the maximum annual turnover permitted by eligible applicants has risen from $20 million to $50 million.

In addition, growing businesses that can benefit from access to skilled managers will now be able to apply for an Experienced Executives grant of up to $350,000, increased from $200,000.

Announcing these changes to Commercialisation Australia's grants, Senator Carr said that they would give Australian inventions a better chance of flourishing in the market place.

Further changes appear to be in the air, with the Minister also announcing that, from early 2012, eligible expenditure guidelines for Early Stage Commercialisation grants will be amended to provide broader support for the development of pilot manufacturing plants and innovative manufacturing facilities.

04 December 2011

Could Samsung’s US ‘Win’ Influence Australia’s High Court?

US-Flag-galaxyIn what could be a very timely decision for Samsung, Judge Lucy Koh in the United States District Court for the Northern District of California issued orders late on Friday, 2 December 2011, denying an interim injunction in the US patent infringement action which was initiated by Apple on 15 April 2011.

We have obtained a copy of the order, which is available for viewing in Google Docs, or for download as a PDF (2.7 Mb).

The order means that Samsung will be able to continue selling its Galaxy Tab 10.1, Galaxy S 4G, the Infuse 4G and the Droid Charge in the United States, until and unless Apple is ultimately successful at trial in establishing infringement by Samsung of at least one valid claim of the patents which it has asserted in the US proceedings. 

Significantly, despite denying a preliminary injunction at this stage, Judge Koh has indicated her provisional opinion that at least one of the four patents relied upon by Apple in the preliminary application is likely valid and infringed.  If that turns out to be so, then Samsung is potentially looking down the barrel of an expensive damages claim, unless it can settle its disputes with Apple in the meantime.

One ‘news’ item that has emerged from the publication of Judge Koh’s order – despite commercially-sensitive passages being substantially redacted – is the supposed revelation that, contrary to widely-held opinions, Apple is in fact willing to license at least some of its ‘smartphone/tablet’ related patents to its competitors, and has even negotiated with Samsung to do so.  (See, e.g., coverage by The Verge, Apple licensed iOS scrolling patent to Nokia and IBM, offered license to Samsung.)

The reason that this information should not come as any surprise is that (as we will discuss further below)  it was already revealed in Justice Bennett’s interlocutory decision in the Federal Court of Australia, again highlighted by a sea of surrounding redactions.

So, with Apple now denied a preliminary injunction in the US as well as in Australia (albeit on appeal), it seems that the stars may finally be aligning for Samsung.  However, it still faces the hurdle of a Special Leave hearing before the High Court of Australia this Friday (see High Court Grants Apple Further Galaxy Tab Reprieve).  So is it possible that the US decision could have any impact on the outcome here?

02 December 2011

High Court Grants Apple Further Galaxy Tab Reprieve

This morning at 9.30am, Justice Heydon heard arguments from Apple requesting an extended stay of the orders made on Wednesday by the Full Federal Court, overturning the injunction barring Samsung's Galaxy Tab 10.1 tablet computer from the Australian market.

The Federal Court granted a stay of its orders until 4pm today, to give Apple an opportunity to launch an application for Special Leave to appeal to the High Court.  While it would be impossible to schedule a hearing on such an application before the end of the week, the Federal Court determined that any further stay of the orders would be a matter for the High Court.

After hearing arguments from both sides, Justice Heydon granted Apple's request for a further stay, finding that the extension is necessary ‘to preserve the subject matter of a Special Leave application’, and ensuring that it will now be at least a further week before Samsung is able to bring stock of the Galaxy Tab 10.1 into Australia.

Samsung v Apple – A Closer Look at the Appeal Decision

Samsung Electronics Co. Limited v Apple Inc. [2011] FCAFC 156 (30 November 2011)

Appeal from decision to grant interlocutory injunction – whether leave to appeal should be granted – principles to be applied when considering grant of interlocutory injunction – need to evaluate strength of the probability of success of applicant – need to take strength of probability into account when assessing the balance of convenience and justice – infringement – strength of prima facie case – invalidity – strength of prima facie case – balance of convenience – factors to be considered

Galaxy-Tab-MagnifierOn Wednesday we provided our initial thoughts on the decision of Justices Foster, Dowsett and Yates overturning the grant of an interlocutory injunction to Apple, barring the sale of Samsung’s Galaxy Tab 10.1 tablet in Australia.  For most readers the case will need no introduction.  Anybody needing to catch up can read back over the various articles we have posted since the dispute began.

Before looking at the decision in more depth, we have to say firstly that Patentology feels somewhat vindicated by the judgment of the Full Court.  Way back on 2 August 2011, when the Apple and Samsung juggernaut first rolled into Justice Bennett’s courtroom, we predicted that Apple would not be granted an interlocutory injunction (see It’s Apple vs Samsung Down-Under as Smartphone War Escalates).  From this, we suggested, further consequences would flow, such as an increased likelihood that Apple and Samsung would reach some form of global settlement of their ongoing disputes before the matter could make it to a full trial in Australia.

Justice Bennett put paid to that course of events, by holding a number of days of hearings and then, against all of our expectations, granting Apple its injunction.  This was, as the Full Court has now confirmed, an error on her part, meaning that – on this occasion at least – our original prediction was a correct evaluation of the relevant law.  An interlocutory injunction in a patent case – preventing sale of an allegedly infringing product prior to the patentee proving infringement – ought to be an extraordinary remedy only granted in exceptional cases. 

Yet the time taken to reach this point has clearly been to Apple’s benefit.  If Samsung now releases the Galaxy Tab 10.1 to the Australian market, it will be four months later than its original intended launch date, and less than three weeks before Christmas.  Apple’s early wins not only in Australia but elsewhere, such as Germany and the Netherlands, appeared to catch Samsung off-guard.  And while the sparring companies are starting to look more evenly-matched, Samsung has certainly had to come back from behind.  As matters have transpired, our prediction of a fairly orderly tit-for-tat leading to a truce was simply not to be.

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