By Dan Levine
SAN FRANCISCO, Jan 7 (Reuters) - Apple Inc faces long odds
in its attempt to overturn an U.S. appeals court ruling that
threatens to undermine its smartphone patent war against Samsung
Electronics Co Ltd.
Apple has asked the full Federal Circuit Court of Appeals to
revisit an October decision by a three-judge panel of the court,
which rejected its request to impose a sales ban on Samsung's
Galaxy Nexus smartphone ahead of a trial set for March 2014.
In that ruling, the Washington D.C.-based appeals court
raised the bar for potentially market crippling injunctions on
product sales based on narrow patents for phone features. The
legal precedent puts Samsung in a much stronger position by
allowing its products to remain on store shelves while it fights
a global patent battle against Apple over smartphone technology.
Apple hopes the full Federal Circuit, made up of nine active
judges, will reverse the panel's findings. But legal experts say
the specific legal issues involved are not likely to be
controversial enough to spur full court review.
Furthermore, the three judges who issued the ruling were
unanimous, whereas the Federal Circuit tends to review a case
"en banc" - with all of the active judges - when an earlier
ruling showed a split.
The Federal Circuit fight comes after Apple won a $1.05
billion verdict last year against Samsung in a California
federal court. The same trial judge will preside over the legal
battle surrounding the Nexus phone, which involves a patent not
included in the earlier trial.
The fight has been widely viewed as a proxy war between
Apple and Google Inc. Samsung's hot-selling Galaxy smartphones
and tablets run on Google's Android operating system, which
Apple's late co-founder, Steve Jobs, once denounced as a "stolen
product."
Google has not had much luck in obtaining injunctions
against Apple, either. In a deal with federal antitrust
regulators announced last week, the Android developer agreed to
limit when it can use certain swaths of its patent portfolio to
seek injunctions.
Samsung's legal papers arguing against full court review of
the Federal Circuit ruling on Galaxy Nexus sales are due this
week. To win a rehearing before the full court, Apple needs five
out of the nine judges to vote in favor.
Representatives for Apple and Samsung both declined to
comment.
RAISING THE BAR
In the October ruling, the three-judge panel found that
Apple did not have enough evidence of a "causal nexus" between
its patented search capability and iPhone sales to prove that
Samsung has caused harm justifying an injunction.
U.S. District Judge Lucy Koh in San Jose, California, who
has presided over much of the Apple/Samsung litigation in the
United States, cited the panel's decision in a December order
rejecting Apple's request for permanent sales bans on several
Samsung phones. Apple has said it would appeal Koh's ruling.
A wide sales ban against Samsung products could be
devastating. Apple claims that 22.7 million of Samsung's total
unit sales from mid-2010 to March 2012 - or $8.16 billion in
U.S. revenue - came from products that infringed Apple patents.
It will be hard to convince the Federal Circuit to revisit
the injunction issue because the legal arguments involved are
not among those that have caused the most recent controversy at
the court, said R. Polk Wagner, a professor at University of
Pennsylvania Law School and a former Federal Circuit clerk.
For example, no outside groups have filed briefs supporting
Apple's bid for en banc review, according to court records.
In contrast, the court last year granted en banc review in a
case about the scope of software patents, currently a hot topic
in intellectual property debates. A three-judge panel in that
case split 2-1, and outside advocacy groups filed briefs urging
full court review. Oral arguments are set for February.
The Federal Circuit is eight times more likely to grant an
en banc petition if a third party files a brief urging it to do
so, according to a 2010 study by Colleen Chien, a professor at
Santa Clara Law in Silicon Valley. The study covered 20 years of
Federal Circuit activity.
While tough for Apple, persuading the court to grant en banc
review is not impossible, court watchers say.
Some of the Federal Circuit judges, including Chief Judge
Randall Rader - who was not part of the panel that issued the
October ruling - are considered by legal experts to be
pro-plaintiff, believing that injunctions are a crucial tool for
enforcing patent rights.
If Apple loses at the Federal Circuit, the company could ask
the U.S. Supreme Court to take up the matter.
However, the Supreme Court has made it more difficult for
patent plaintiffs to secure sales injunctions in recent years,
suggesting it would be unlikely to review this case, said
Wagner, of the University of Pennsylvania.
"If they don't get it now," he said of Apple's petition for
en banc review, "any chance they have won't come again for a
long time."
The case in the Federal Circuit is Apple Inc. vs Samsung
Electronics Co Ltd et al, 12-1507.
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