Former Apple CEO Contacted Samsung to Fix Patent Row

Former Apple Chief Patent Counsel Richard Lutton told the Sydney Federal Court on Thursday that ex-Apple Chief Executive Officer Steve Jobs personally contacted Samsung in 2010 to fix their patent row.

Lutton told Justice Annabelle Lutton that prior to the legal dispute, Apple had a deep business relationship with Samsung. Jobs' initiative sought to avoid a messy legal battle with Samsung which is Apple's supplier, and to avoid potential parts supply problem for Apple's iPad.

Apple admitted the court battles which has taken the two partners and competitors in different continents, is more about market share than patents. To prevent Samsung from eating further into Apple's market share which it did with the Android phones, Apple sought to block the sale of Samsung's Galaxy Tab 10.1 in Australia, Germany and Europe.

Ms Bennett questioned Apple why did the company single out Samsung when there are other Android-based tablets in the market.

"This is going to be launched on the market with the velocity of a fire hose and (the Galaxy Tab 10.1 is) going to just come in and take away iPad sales so quickly that by the time we get to final hearing the full impact of the patent infringement will be (felt) to the detriment of Apple and to the benefit of (Samsung)," The Sydney Morning Herald quoted the Apple counsel.

According to analysts, Apple's iPad2 would continue to enjoy a larger cut of the tablet computer market despite the launch of similar gadgets by competitors. Data from research firm IDC showed that tablet shipments to Australia and New Zealand doubled to 420,000 units in Q2, with 87.5 per cent of the units going to Australia.

Samsung argued that Apple has a loyal market and its main competitors are other tablet makers.

"People will choose either to stick to Apple because you like Apple and you like the operating system and you like the link to iTunes and so on. Or you want a completely different system and you'll move in the direction of Android," the Samsung lawyer countered.

Apple replied that besides affecting iPad 2 sales, the shift to Galaxy would also impact its app sales as techies shift to Android technology.

"They'll then be Android people and the investment in the apps that they make to purchase on their Galaxy Tab will be something they can't use on an Apple product," the Apple lawyer replied.

Ms Bennett stressed she would only make a decision on the Aussie version of Galaxy Tab 10.1. The justice is still mulling if she would issue a temporary injunction on the Samsung device.