Please complain to Samsung!
This is day 23 of my Samsung S3 clipboard error.
I was on ICS I9300XXBLH1 when this error occurred suddenly...I think it has something to do with Samsung Test Service crashing...
Updated to Jelly Beans I9300XXDLJ1 without factory reset on 29 Oct 2012...
I can now copy and paste within Chrome, but nowhere else. At least now, apps will not hang when doing a copy. I have no option to paste outside Chrome. Inside S-memo, where I'm supposed to see "paste" and "clipboard", I only see "clipboard". Pressing on "clipboard" has no response. NO paste option within gmail, sms, whatsapp, browsers (except Chrome) etc..
It's quite clear to me that it's a Samsung bug and it's only right that Samsung release an update to fix this problem!
Even if you choose to fix the problem via Factory Reset or Root, please voice out here (or to Samsung) if you've faced the problem!