Apple has lost out in the latest round of legal battles with Samsung over the right to sell its controversial Galaxy Tablet.
Judges in Australia said Apple hadn't demonstrated that Samsung has infringed on patents owned by the iPad creators.
But Apple can still appeal the decision as early as Friday.
Legal battles started in August after Apple gained an injunction stopping Samsung from selling its device in the country by
claiming 13 patents were being infringed.
PC Advisor reported Samsung as saying: "We believe the ruling clearly affirms that Apple's legal claims lack merit."
Apple has yet to comment on the matter.
The legal ruling has global implications as Apple has launched similar action in several other countries including Germany.
The case will be heard in March