Innovation Asset Blog

Sales ban off the table in Apple-Samsung patent dispute

Last month, U.S. District Court Judge Lucy Koh denied a motion filed by Apple that would have banned sales of several new Samsung Galaxy smartphones until patent litigation between the two companies was ultimately resolved. Apple has since attempted to appeal the decision to a higher court, but encountered a similar answer earlier this week.

According to Reuters, Apple pled its latest case to a nine-member panel of justices in the Federal Circuit of Appeals. Koh's earlier decision was supported as the court summarily rejected the company's repeated request for injunction on account of Samsung's willful infringement. As a result, the previous penalties will be held constant and Galaxy products will continue to be sold in the run up to the pair's next scheduled court appearance in March 2014.

While the appeals process has grown tiresome to some spectators, new market research released this month has underscored the significant value of the shares the two companies are fighting for. According to analysts from Counterpoint, Apple and Samsung combined to generate 95 percent of all smartphone industry profits in Q4 2012.

Though this lucrative arena may look like a two-horse race, strategic missteps or cooperation among competitors could change market dynamics overnight. As a result, each company feels compelled to grow and defend a patent portfolio they feel can support sustainable success.

Peter Ackerman

Peter Ackerman

Founder & CEO, Innovation Asset Group, Inc.