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Sign up for Counterparties by email Follow Reuters Facebook Twitter RSS YouTube Read Analysis: In vice presidential debate, "tie goes to the incumbent" 2:14am EDT A diamond bigger than Earth? 11 Oct 2012 Biden comes out swinging at debate, clashes with Ryan | 2:58am EDT Gunmen kill Yemeni who worked at U.S. embassy in Yemen | 11 Oct 2012 Catholics Ryan, Biden disagree over abortion rights 1:29am EDT Discussed 157 Democrats frustrated by Obama’s ”Big Bird” campaign turn 155 Weak U.S. labor market looms ahead of elections 130 Romney to draw contrast with Obama on foreign policy Sponsored Links U.S. court clears Samsung phone, hands Apple setback Tweet Share this Email Print Related News Google in industry's "defining fight" with Apple, Schmidt says Thu, Oct 11 2012 Wall Street flat as Apple cuts jobs data gains Thu, Oct 11 2012 UPDATE 2-U.S. court clears Samsung phone, setback for Apple Thu, Oct 11 2012 Chevron fails to block $18 billion Ecuador judgment Tue, Oct 9 2012 Samsung posts $7.3 billion third-qurter profit, this quarter will be tougher Thu, Oct 4 2012 Analysis & Opinion Motorola loses bid to reshape crucial trial on essential patents Do all patent-related malpractice suits belong in federal court? Related Topics Tech » iPad » Related Video Apple nibbles on Wall St. Thu, Oct 11 2012 Get ready for Applesoft - Tech Tonic Apple picking season on Wall St. 1 of 8. Apple's iPhone (L) and Samsung Galaxy Note are displayed at a shop in Tokyo in this August 31, 2012, file photo. Samsung filed a motion against Apple saying the iPhone 5 had infringed on some of the company's patents, October 2, 2012. Credit: Reuters/Kim Kyung-Hoon/Files By Diane Bartz and Dan Levine WASHINGTON/SAN FRANCISCO | Thu Oct 11, 2012 8:13pm EDT WASHINGTON/SAN FRANCISCO (Reuters) - A U.S. appeals court overturned a pretrial sales ban against Samsung Electronics Co Ltd's Galaxy Nexus smartphone, dealing a setback to Apple Inc in its battle against Google Inc's increasingly popular mobile software. Apple is waging war on several fronts against Google, whose Android software powers many of Samsung's devices. The ruling on Thursday from the U.S. Court of Appeals for the Federal Circuit is not expected to have an outsized impact on the smartphone market, as the Nexus is an aging product in Samsung's lineup. Apple's stock closed down nearly 2 percent at $628.10. However, the court's reasoning could make it much harder for companies that sue over patents get competitors' products pulled from the market, said Colleen Chien, a professor at Santa Clara Law school in Silicon Valley. Such sales injunctions have been a key for companies trying to increase their leverage in courtroom patent fights. "The Federal Circuit has said, 'Wait a minute,'" Chien said. Apple declined to comment, while Samsung did not immediately respond to requests for comment. Apple scored a sweeping legal victory over Samsung in August when a U.S. jury found Samsung had copied critical features of the hugely popular iPhone and iPad and awarded Apple $1.05 billion in damages. The Nexus phone was not included in that trial, but is part of a tandem case Apple filed against Samsung earlier this year. District Judge Lucy Koh issued a pretrial injunction against the Nexus in June, based on an Apple patent for unified search capability. The appeals court then stayed that injunction until it could formally rule. In its opinion on Thursday, the Federal Circuit reversed the injunction entirely, saying that Koh abused her discretion. Apple failed to prove that consumers purchased the Samsung product because of the infringing technology, the appeals court ruled. "It may very well be that the accused product would sell almost as well without incorporating the patented feature," the court wrote. "And in that case, even if the competitive injury that results from selling the accused device is substantial, the harm that flows from the alleged infringement (the only harm that should count) is not." The court considered a single patent - one which allows the smartphone to search multiple data storage locations at once. For example, the smartphone could search the device's memory as well as the Internet with a single query. The appeals court has sent the case back to Koh for reconsideration. A separate pretrial sales ban Apple had managed to win against Samsung - targeting the Galaxy Tab 10.1 - was dissolved earlier this month after Samsung won at trial on that patent. Beyond the Nexus, Samsung also has a collection of new tablets and smartphones intended for launch before the holidays. On Wednesday, Google executive chairman Eric Schmidt called the intensifying struggle between Apple and his company a "defining fight" for the future of the mobile industry. The case in the Federal Circuit is Apple Inc vs. Samsung Electronics Co Ltd et al., 12-1507. (Reporting By Diane Bartz; Editing by Gerald E. McCormick, Bernard Orr) Tech iPad Related Quotes and News Company Price Related News Tweet this Link this Share this Digg this Email Reprints We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/ Comments (0) Be the first to comment on reuters.com. Add yours using the box above. 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