Sydney - Apple has rejected an offer from Samsung
Electronics to settle their tablet computer dispute in Australia, possibly
killing off the commercial viability of the South Korean firm's new Galaxy
tablet in that market.
Apple says Samsung's Galaxy line of cellphones and tablets
"slavishly" copied its iPhone and iPad and has launched an
international legal battle which is expected to hurt growth at one of Samsung's
fastest-growing businesses.
Samsung, whose Galaxy gadgets are seen as a major threat to
Apple's devices, rejects the claims but has been seeking a quick settlement in
Australia so that its new Galaxy 10.1 tablets can be launched there in time for
Christmas.
But a lawyer for Apple told the Federal Court in Sydney on
Tuesday that Samsung's latest offer, made last week, provided no basis for a
settlement and it wanted the court to rule on its claim that the Galaxy's touch
screen technology infringed an Apple patent.
"The main reason we are here is to prevent the launch
(of the Galaxy tablet) and maintain the status quo," Apple lawyer Steven
Burley told the court.
An Apple victory in Australia could hurt Samsung's bid to
close the gap with Apple in the global tablet market, with a crucial US court
ruling expected next week.
Samsung told the Sydney court that if it could not secure a
ruling within about two weeks, the opportunity to launch its new tablets in
time for Christmas would be lost and that it might as well take its time to argue
the case well into 2012.
"If we can't get a decision out by mid-October, there
is no urgency," said Neil Young, a lawyer for Samsung, adding that it
might take until March to fully prepare its legal defence.
In that case, he added, the Galaxy 10.1 in the Australian
market would be "commercially dead".
Samsung's latest Galaxy tablets, powered by Google's Android
operating system, have already been blocked in Germany. So too have some
smartphone models in the Netherlands.
Crucial US court ruling
Samsung had hoped to launch the new Galaxy tablet in
Australia in late August or early September but this has been repeatedly
delayed as it awaits the Australian court's ruling.
The ruling could come this week, a federal court judge had
said last week.
Last week, Samsung agreed to withdraw two features from the
Galaxy 10.1, leaving just one disputed Apple patent over touch screen display
technology. This patent deals with how finger movements are used on tablets to
generate a software command.
Samsung and Apple are suing each other in nine countries
over 20 cases, with few of them holding as much significance as the California
court ruling expected next week.
Samsung may seek legal measures to ban sales of Apple's new iPhone, a source familiar with the matter has told Reuters. The highly anticipated iPhone 5 is set to be unveiled later on Tuesday.
Apple fired its first salvo in April by suing Samsung in
California, saying the Galaxy lineup devices infringed on its mobile technology
patents and design.
Samsung's smartphone business has been growing furiously,
powered by its flagship Galaxy lineups. Some analysts expect Samsung to
overtake Apple in unit terms as the world's No 1 smartphone vendor and report
record profits from mobile business in July-September.
Samsung, due to report its third-quarter earnings guidance later this week, saw smartphone sales soar more than 500% in the second quarter, easily eclipsing Apple's 142% growth, though Apple sold about 1 million more units.