Apple v. Samsung: Apple Loses Bid For Permanent Injunction Against Samsung Because It Cannot Show Nexus Between Harm And Patented Features

Apple suffered yet another set back in the Smartphone wars, this time losing its motion for a permanent injunction against Samsung. The district court denied the permanent injunction primarily on the ground that Apple could not show irreparable harm that would result to Apple if an injunction did not issue.

As explained by the district court, "[T]o satisfy the irreparable harm factor in a patent infringement suit, a patentee must establish both of the following requirements: 1) that absent an injunction, it will suffer irreparable harm, and 2) that a sufficiently strong causal nexus relates the alleged harm to the alleged infringement." Apple, Inc. v. Samsung Electronics Co., Ltd., 695 F.3d 1370, 1374 (Fed. Cir. 2012) ("Apple II" ). This test requires a showing that consumers buy the infringing product "because it is equipped with the apparatus claimed in the . . . patent," and not merely because it includes a feature of the type covered by the patent. Id. at 1376."

Apple alleged that it had suffered three kips of irreparable harms as a result of the infringement by Samsung, loss of market share, loss of downstream and future sales and injury to Apple's ecosystem. The district court found that Apple and Samsung compete and continue to compete in the same market and that Apple has lost market share to Samsung. The district court also concluded that Apple had sustained some irreparable harm from the loss of downstream sales, which would encompass any alleged harm to the Apple ecosystem.

After reaching these conclusions, the district court focused on the causal nexus requirement that the Federal Circuit used in the previous Apple appeal. "The Federal Circuit has been quite clear that a showing of harm is not enough; Apple must link any harm it suffers directly to Samsung's infringement. This Court and the Federal Circuit have analyzed this "causal nexus" issue on a patent-by-patent basis. See Apple I, 678 F.3d at 1323-33 (analyzing appropriateness of injunction for each of four patents separately)."

The district court found that Apple could not meet this standard. "However, Apple's evidence does not establish that any of Apple's three design patents covers a particular feature that actually drives consumer demand." The district court noted that "even if design was clearly a driving factor, it would not establish the required nexus. The design of the phones includes elements of all three design patents, as well as a whole host of unprotectable...