Samsung and LG are key Qualcomm customers and were seen as the most likely victims of the ban announced in June. But the companies said that their US business had so far not been affected by the ban, which was supposed to take effect from this month. Both groups had been making alternative supply arrangements.

LG, which has heavy exposure to the US CDMA market, said: ”The ban might have depressed the whole US handset market.”

Samsung also welcomed the ruling.

The news drove LG’s shares up 4.25 per cent to Won76,100 and Samsung’s 0.36 per cent to Won562,000, while the broader market closed up 1.9 per cent yesterday.

On Wednesday, a judge in Washington agreed that the third parties had demonstrated ”a substantial case on the merits and the harm factors weigh[ed] in their favour”.

LG shipped 37 per cent of its total handset sales to the US last year. It sold 64m units of handsets last year and controls 15.2 per cent of the US market. Samsung sold 27 per cent of its total handset sales, which amounted to 37.4m units, in the US in the second quarter, according to Nomura International.

The International Trade Commission on June 7 imposed the ban after finding that Qualcomm had infringed a Broadcom power-saving patent. The two sides have been unable to reach agreement on compensation out of court.

Alex Rogers, legal counsel for Qualcomm, said: ”We are pleased that the court of appeals recognised the undeserved harm to parties who were not named in the lawsuit, and that our customers will continue to be able to introduce new products into the US marketplace during the appeals process.”

Qualcomm’s technology is included in all 3G handsets, meaning that a full ban on cellphones carrying its chips might potentially have hampered the take-up in the US of the next generation of wireless technology.

In February, LG, which has strength in the 3G business, won a contract from GSM Association to supply a low cost handset for 3G mobile phone networks under the banner ”3G for All”.

"This is getting serious," said Senator Amy Klobuchar, a Minnesota Democrat. "It is time for us to take action."

Senators also called for a revamping of the Consumer Product Safety Commission, including giving it the power to ban lead in all children's toys, funds to increase the number of inspectors at ports and compliance officers in the field, and providing better equipment and better staff for the testing laboratory.

Mattel, the nation's largest toy company, and other members of the Toy Industry Association, whose members are collectively responsible for 85 percent of toys sold in the United States, support a federal mandate that toys be tested by independent laboratories before they are sold.

Failure by all parties to properly do such testing has "left our companies, the industry and most importantly our children exposed," Carter Keithley, president of the Toy Industry Association, said in his testimony.

Gerald L. Storch, chairman of Toys "R" Us, said the government and toy manufacturers should find a way to hasten the recall of products after flaws are discovered.

"We are troubled by the possibility that we could be continuing to sell toys that someone knows may have a problem, while we remain unaware until we receive word that a recall is coming," Mr. Storch said.

The hearing took place in a crowded chamber framed by two illustrations propped up behind the senators: one with a photograph of the Consumer Product Safety Commission's sole full-time toy tester in a cramped, poorly equipped laboratory, and a second with a chart showing that most of the consumer products recalled in the United States since December came from China.

Nancy A. Nord, the acting chairwoman of the Consumer Product Safety Commission, said she agreed with many of the proposals to confront these two problems, acknowledging, for example, that the agency's laboratory in Gaithersburg, Md., is woefully inadequate.

"It is an incredibly inefficient facility," she said of the lab, which is in a 1950s-era former missile defense site outside Washington.

But Democrats and the one Republican senator at the hearing - held by a Senate Appropriations subcommittee - expressed frustration with progress enforcing safety rules, particularly concerning flawed goods from China.

"We need to start pulling the club out," said Senator Sam Brownback, a Kansas Republican who is a presidential candidate.

Ms. Nord said it would help if Customs and Border Protection, which has a much larger force of inspectors at ports, could do more to help enforce consumer safety laws. "We all understand that Customs' first responsibility is homeland security," she said, but added that her agency had so few employees at ports that it could do little on its own.

Mr. Eckert of Mattel was questioned about allegations that his company intentionally delayed notifying United States authorities about initial reports that some of its toys contained lead.

He acknowledged that one initial report about lead contamination of a toy destined for a retailer in France may not have been reported, as the company believed it had intercepted the product before it reached the market, and that this item was not being sold in the United States.

Mattel, he said, will now test every batch of its contractors' toys for lead, and require them to buy paint only from approved vendors. Auditors hired by the company will also spot-check contractors' factories in China, he said.

Senator Richard J. Durbin, Democrat of Illinois, praised the toy industry for acknowledging that hazardous toys are a real problem.

"There is no corporate denial here," he said. "There is no defensive crouch."

But Mr. Durbin said he was disappointed with Ms. Nord and the safety commission, which he said did not appear to be attacking the problem aggressively enough, including moving too slowly to institute and enforce a ban on lead in children's jewelry.

He also mocked a new agreement with Chinese officials to block lead in toys, saying that the Chinese government told his office the policy had long been in place.

What is clear, Mr. Durbin said, is that the consumer product regulatory system - which largely relies upon manufacturers, importers and retailers to police themselves and report hazardous products - has not worked well enough.

"Those who have argued for so many years that we have to get government out of our lives understand that there are moments when we need government, when we need someone to make certain that the products on the shelves are always going to be safe," he said at the close of the hearing. "We need to step up to that responsibility."

The Washington Restaurant Association, which opposes King County's plan to mandate that chain restaurants label their menus with nutritional information, is lauding a New York court decision that essentially strikes down a similar plan.

In U.S. District Court in Manhattan, a judge ruled in favor of the New York State Restaurant Association, which challenged a similar menu labeling plan enacted by the New York City Board of Health.

The Washington State Restaurant Association (WRA) applauded the New York court decision, with officials saying that King County's mandate that was enacted in July and takes effect next year is in jeopardy.

"We are hopeful that the findings in New York City will compel the King County board of health to come back to the table and work in partnership with the industry. While we believe obesity is an issue we must address as a community, the WRA strongly opposed the board's menu labeling requirement this summer," said Anthony Anton, WRA president and CEO, in a statement.

The King County board of health plan would require chain restaurants with more than 10 national locations to display calorie, fat, sodium and carbohydrate information on menus. Restaurants would have until Aug. 1, 2008 to put the information on menus and menu boards.

"My office contacted the IRS and determined that this is yet another scam for people to be wary of in their e-mail. The IRS has advised us that they will never initiate contact with you via e-mail."

This particular scam lures unsuspecting people in by dangling $80 in front of them upon completion of the survey.

The catch is the person filling out the survey must include pertinent credit card or bank account information for the cash to be direct deposited into the account.

The e-mail is littered with IRS references and the link to the survey and all of the information on the page has a phony copyright statement at the bottom.

Anyone who receives the survey scam message should immediately forward it to phishing@irs.gov so the IRS can investigate the sender.

"Anyone who is unfortunate enough to fall for one of these scams can face identity theft, which can cause financial hardship and ruin your credit," Donovan warned.

"If you have any doubt regarding the legitimacy of an e-mail you receive, you should immediately contact the company of government agency whose name is being referenced."

Automakers General Motors Corp. and DaimlerChrysler AG -- which has since sold its Chrysler unit -- sued in 2005 to block the law, arguing that states do not have the authority to regulate the amount of CO2 released by cars, which is closely related to fuel economy.

Vermont is one of nearly a dozen states that followed California's lead in adopting the strict standard, which is tougher than federal rules and is intended to reduce the rise in global temperatures and changing weather patterns associated with greenhouse gas emissions.

The automakers argued that they could not meet the new standards, and in court testimony said they would have to pull out of the state as a result.