Galaxy tablet ruling bruises Apple

APPLE has been dealt a blow as competitor Samsung has won the right to release its tablet computer in Australia.

By InvestSMART · 10 Dec 2011

By InvestSMART ·
10 Dec 2011

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APPLE has been dealt a blow as competitor Samsung has won the right to release its tablet computer in Australia.

After months of legal wrangling, Samsung's Galaxy Tab 10.1 will be launched just in time for the end of Christmas shopping.

The High Court yesterday dismissed Apple's application for special leave to appeal a Federal Court decision overturning a ban on the sale of the Galaxy Tab.

The ban had been in place since mid-October, when Apple was granted an injunction preventing the sale of Samsung's tablet in Australia on the grounds that it infringed Apple's iPad2 touch-screen patent.

The courts had also heard that continuing the injunction against the Tab's sale would effectively kill the product as it would be superseded by newer technology.

Samsung said it was pleased the High Court had agreed with the Federal Court decision.

That decision "clearly affirmed our view that Apple's claims lack merit and that an injunction

should not have been imposed on the Galaxy Tab 10.1", the company said.

Apple refused to comment, reverting to a previous statement.

"It's no coincidence that Samsung's latest products look a lot like the iPhone and iPad, from the shape of the hardware to the user interface and even the packaging," Apple said.

"This kind of blatant copying is wrong and, as we've said many times before, we need to protect Apple's intellectual property when companies steal our ideas."

The Galaxy Tab is likely to hit shops next week.

Apple had claimed Samsung's tablet copied its iPad, infringing patents in relation to touch screens and the gestures that control

them.

But last week three judges in the Federal Court overturned the October injunction, saying the ban had the practical effect of "killing off" the Galaxy Tab 10.1 in Australia.

In their findings, Federal Court judges Dowsett, Foster and Yates said Apple's infringement-claims hearing would be unlikely to take place before the middle of next year, and the technology had a shelf life of only 12 months.

Given the Galaxy Tab had been due to be launched in the middle of this year the judges found the injunction would seal the fate of the Samsung product.

Samsung has in turn sought an injunction to stop Apple from selling its newly released iPhone 4S in Australia, claiming it infringes on three patents relating to its wireless telecommunication standards.

The companies are also embroiled in legal disputes in the US, Europe, South Korea and Japan.

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Frequently Asked Questions about this Article…

What did the Australian High Court decide about the Samsung Galaxy Tab 10.1 sales ban?

The High Court dismissed Apple’s application for special leave to appeal a Federal Court decision that overturned the earlier injunction. That means the ban preventing Samsung’s Galaxy Tab 10.1 from being sold in Australia was effectively lifted, allowing Samsung to proceed with its planned local launch.

Why was the Galaxy Tab 10.1 originally banned from sale in Australia?

Apple was granted an injunction in mid‑October arguing the Galaxy Tab 10.1 infringed an iPad2 touch‑screen patent and related gesture controls. That injunction temporarily prevented Samsung from selling the tablet in Australia until the Federal Court later reversed it.

On what grounds did the Federal Court overturn Apple’s injunction on the Galaxy Tab?

Three Federal Court judges found that continuing the injunction would likely 'kill off' the Galaxy Tab in Australia because the infringement hearing wouldn’t happen before the middle of next year and the technology has a limited shelf life (about 12 months). They concluded the injunction’s practical effect would be to seal the product’s fate.

How did Samsung and Apple respond to the court rulings?

Samsung said it was pleased and argued Apple’s claims lacked merit, saying an injunction should not have been imposed. Apple declined further comment beyond a previous statement accusing Samsung’s devices of copying the iPhone and iPad and stressing the need to protect its intellectual property.

What does the ruling mean for consumers and the Galaxy Tab 10.1 launch in Australia?

With the injunction lifted, the Galaxy Tab 10.1 was expected to reach stores in time for the end of the Christmas shopping period, meaning Australian consumers should be able to buy the tablet once it hits shelves.

Are there other legal battles between Apple and Samsung investors should know about?

Yes. Samsung has sought an injunction to stop Apple selling the iPhone 4S in Australia, claiming infringement of three wireless telecom patents, and both companies are involved in patent disputes across the US, Europe, South Korea and Japan.

How might this patent ruling affect Apple and Samsung from an investor perspective?

The decision highlights litigation risk and how court outcomes can affect product availability and competitive dynamics. For investors, ongoing legal battles can influence sales timing, public perception and potential costs — all factors to monitor when assessing these companies’ prospects.

What should everyday investors watch next in the Apple vs Samsung dispute?

Investors should track the scheduling and outcome of the infringement hearings (the Federal Court trial was expected not to occur before mid‑next year), any reciprocal injunction attempts like Samsung’s bid over the iPhone 4S, and legal developments in other jurisdictions where the companies are fighting.