The Federal Court decision to grant an injunction against Samsung from selling its Galaxy Tablet is just the beginning of a number of patent disputes that are set to engulf the sector over the next few years, experts warn.
Apple was granted the injunction yesterday, arguing the Galaxy Tab infringes on a number of patents, dealing a significant blow to Samsung, which had been preparing the Galaxy Tab launch in anticipation of the Christmas shopping season.
The judgement comes alongside a separate ruling in California, where a judge has also ruled the Galaxy tablets infringe on some of Apple’s patents.
Paul Budde of Budde Communications says while there are some signs the current wave of patent disputes may dissipate – including Google’s purchase of the Motorola mobile business – there is no indication it will disappear altogether.
“Perhaps that is going to alleviate the problem a little bit, but patents are certainly going to be around for awhile and these disputes will as well,” he says.
Tech giants including Samsung, Apple, Google, Microsoft and various other firms have been suing each other for the past few years over what they believe to be patent infringements. As companies grow and acquire others, their stock of patent filings also grows.
But as devices begin to take a common shape and manufacturers start using extremely similar methods of construction and design, businesses have moved to carve out their territory in the sector by claiming royalties from businesses which they believe to be infringing on extremely specific patents.
The injunction Apple won yesterday against Samsung will make sure the company cannot sell the Galaxy Tab in Australia for now. Justice Bennet argued the damage to Apple would be greater than Samsung if the tablet was sold.
“We are disappointed with this ruling and Samsung will be seeking legal advice on its option,” the company said in a statement. “Samsung will continue its legal proceeding against Apple’s claim in order to ensure our innovative products remain available to consumers.”
The injunction changes up the market, as the Galaxy Tab would have been one of the key competitors for the iPad this holiday season, and may have resulted in some growth in the number of Android products sold.
The two companies are appearing before the Federal Court today for a directions hearing, but analysts already point out the market has changed as a result of the ruling.
Budde says he is “on the fence” about the entire situation.
“I can understand that Apple wants to protect its intellectual property, and of course has the full right to do so, but at the same time you don’t want to see them stifling innovation and competition.”
“Particularly, you see this happen as Apple is a closed, proprietary system, whereas the operating systems like Android are heading towards being much more open. If Apple is going to play this card further, it may even backfire against them.”
Budde says if Apple isn’t careful, it could find that users start viewing the company as a “new Microsoft”.
“Apple doesn’t want to become that type of company. It has a loyal following. Microsoft has been seen for a long time as lacking innovation and doing this sort of thing. It doesn’t want to gather that reputation.”
Patrick Stafford is a freelance journalist and a former deputy editor of SmartCompany.
