Thursday, August 30, 2012

Apple Inc. (NASDAQ:AAPL) - Delaying the Sales Ban on Samsung Devices makes it Meaningless

The next hearing for deciding on a ban on Samsung’s devices has been set for December 6, which has raised speculation over the efficacy of a ban at such a delayed date.

Last Friday, a San Jose federal court jury found Samsung guilty of violating six of Apple Inc.(NASDAQ:AAPL)’s seven patents under dispute. It also found the Korean company guilty of copying Apple's devices.

However it said that Apple had not violated any of Samsung’s patents. It was a big victory for Apple, which is also seeking a ban on sales of Samsung's products in the United States.

Earlier this week it gave a list of eight smartphones that it wants banned. However an earlier date of September 20 that was set for hearing on this injunction was later postponed to December 6.

"For Apple it is extremely important that the ban occurs quickly.  Any delay will give Samsung time to clear the old inventory and help stores stock alternative products that are not on the ban list," wrote Nigam Arora in Forbes.

There is uncertainty about why Judge Lucy Koh, who knows the merits of both the parties, delayed the date for the hearing on the ban plea.

Delaying the ban would only make it meaningless, at least so far as Apple is concerned while for Samsung it gives valuable breathing space to recoup and change its strategy.

The verdict against Samsung would have carried weight only when juxtaposed with a ban on the sale of the products. It may be recalled that a Seoul court, which had found both companies of violating each other’ patents on the same day, had enforced a sales ban on some of the products of both companies, with immediate effect.

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