Apple vs. Samsung ruling divulges secret details

A US court error offered a brief glimpse at information that Apple and Samsung Electronics have tried to shield from the public during their high-stakes patent litigation.

The material appears to be less important for what it says about the companies than what it reveals about efforts to keep court proceedings secret. In denying Apple's bid to stop Samsung from selling its Galaxy smartphone and tablets in the United States, U.S. District Judge Lucy Koh's ruling inadvertently included details she had intended to black out. The judge's staff quickly realized the error, sealed the electronic document and posted a redacted version four hours later. The fuller version, which Reuters obtained while it was publicly available, did not expose the technical inner workings of the iPad -- or anything close. Rather, it contained internal company analysis about the smartphone market, as well as some details about Apple's patent licensing relationships with other tech companies.

According to the redacted portions, Apple's own studies show that existing customers are unlikely to switch from iPhones to Samsung devices. Instead, the evidence suggests an increase in sales of Samsung smartphones is likely to come at the expense of other smartphones with Android operating systems, Judge Koh wrote. In arguing against the injunction, Samsung -- which is also a huge components supplier to Apple -- said Apple's supply cannot keep up with market demand for smartphone products. Koh recounted the argument in the redacted portions of the ruling. But Judge Koh then called Samsung's argument "dubious," given rebuttal evidence presented by Apple regarding its ability to keep up with demand in the long term. The redacted portions also refer to licensing deals that Apple struck with other high-tech companies over one of its key patents. Issued in December 2008, the patent covers the method of scrolling documents and images on Apple's touch-screen devices.