The Obama administration has overturned a
United States trade panel’s ban on the sale of some older iPhones and
iPads, reversing a ruling that had favored Samsung Electronics Company
Limited over Apple Incorporated in their long-running patent battles.
The US International Trade Commission in June, according to Reuters
banned the import or sale of the iPhone 4, iPhone 3GS, iPad 3G and iPad
2 3G distributed by AT&T Incorporated, saying the devices infringed
a patent owned by the South Korean electronics giant.
US Trade Representative, Michael Froman
on Saturday vetoed the ban, saying his decision was in part based on its
“effect on competitive conditions in the US economy and the effect on
US consumers.” He said Samsung could continue to pursue its case through
the courts.
Samsung said it was “disappointed” at
the lifting of the ban. “The ITC’s decision correctly recognized that
Samsung has been negotiating in good faith and that Apple remains
unwilling to take a license,” it said in a statement.
Apple welcomed the news and applauded
the administration “for standing up for innovation.” It added, “Samsung
was wrong to abuse the patent system in this way.”
The Apple products targeted by the ITC
ban are more than a year old, though some models such as the iPhone 4
remain solid sellers. Apple sells more than 100 million iPhones
annually, but it does not break down sales by models.
Apple and Samsung have been waging a
global patent war since 2010, filing multiple lawsuits against each
other over the design and functionality of their devices.
This ITC ban is specific to a Samsung
patent on technology that allows devices to transmit multiple services
simultaneously and correctly through 3G wireless technology.
Such patents are called “standard
essential patents” and they cover technology that must be used to comply
with standards set by industry organizations.
The Obama administration has been
pressing for most infringements of standard essential patents to be
punished by monetary fines instead of sales injunctions.
Froman on Saturday said the ITC should
thoroughly examine the public interest ramifications of its rulings in
disputes over standard essential patents.
Designed to be a trade panel, the ITC
has become a popular venue for patent lawsuits because it acts
relatively quickly and can order import bans, which are more difficult
to get from district courts.
While the ITC was created to ensure that
US companies can compete fairly against imports, a number of foreign
companies with US manufacturing plants have filed patent complaints with
the agency. Samsung has a plant in Austin, Texas.
ITC cases can be appealed to the US Court of Appeals for the Federal Circuit, and from there to the Supreme Court.
Apple has a parallel complaint filed
against Samsung at the ITC, accusing the South Korean company of copying
the iPhone and iPad. An ITC judge in that case found that Samsung had
violated four out of six patents listed in the complaint. A final
decision is due in August.
Samsung makes phones that run on Google
Inc’s Android operating software, the market leader. Apple has also sued
other Android phone makers including HTC Corp for patent infringement.
The case at the International Trade Commission was No. 337-794.
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