Saying that companies should compete in the marketplace rather than in court, Samsung today withdrew its requests for sales bans of some Apple (AAPL) products in Europe. The Korean giant is still suing Apple for damages, saying the iPhone maker infringed some of its standards essential patents. (Standards essential patents are those that enable a device to operate in compliance with technical standards, and companies are required by law to license those patents on “fair and reasonable terms.” Samsung will continue to litigate in an effort to compel Apple to pay licensing fees for the use of Samsung patents.)
By dropping its request for injunctions, Samsung has paved the way for Apple to expand sales of the iPhone and iPad in Europe. Patent analyst Florian Mueller believes the European Union pressured Samsung to drop its injunction requests in the interest of European consumers. But many of those consumers will have a hard time buying iPhones and iPads even without potential legal roadblocks, due to the struggling European economies. Just yesterday Canaccord Genuity analyst Michael Walkley published a research note projecting softer European sales for the iPhone and iPad. (It should be noted, however, that Walkley maintains a ‘buy’ rating on Apple with a target price of $750/share.)
Meanwhile in the United States, Samsung has maintained (for now) the right to sell its mobile devices that compete head-on with Apple’s products. After winning a billion dollar verdict against Samsung this summer, Apple asked federal judge Lucy Koh to ban sales of Samsung’s Galaxy Tab 10.1 and Galaxy Nexus smartphone. Late yesterday Judge Koh denied those requests, although Apple can still appeal. But Apple’s incentive may deteriorate with each month that the legal process drags on, as the devices in question become less relevant in the market.
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