Wednesday, June 5, 2013

Apple started the patent battle with Samsung, now; it has come to haunt them, even in their backyard: the United States of America. This new judgement may put Apple on a bad spot to say the least, considering that their reputation is now more fragile than ever.

A U. S. trade agency, International Trade Commission (ITC) yesterday issued a ban on imports of Apple's devices that infringed Samsung's patents on 3G wireless technology and encoding mobile communication.

The affected devices are iPhone 3, iPhone 3GS, iPhone 4, iPad 3G, and iPad 2 3G sold by telecommunications giant AT&T. Of these devices, the iPhone 4 is still in sale and is one of the iPhones that amassed $78.7bn revenue for Apple (about half of total revenue) for the fiscal year ended September 29, 2012 according to Bloomberg.

This new judgement succeeds the previous judgement in September 2012 by James Gildea that ruled that Apple did not infringe on the 4 patents Samsung challenged Apple on, the judge rendered one of the patents invalid. Apple’s smartphones are assembled in Asia and then transported to the United States.

“We believe the ITC’s final determination has confirmed Apple’s history of free-riding on Samsung’s technological innovations,” Adam Yates, a Samsung spokesman, said yesterday. “Our decades of research and development in mobile technology will continue, and we will continue to offer innovative products to consumers in the United States.”


The case will be reviewed by U. S. President Barack Obama before the end of 60 days by which the ruling will take effect except he overturns it. Mr Obama’s administration has been against using sales ban as punishment for this type of infringement case and has advocated cash fines instead.
“We are disappointed that the commission has overturned an earlier ruling and we plan to appeal,” Apple spokeswoman, Kristin Huguet said. “Today’s decision has no impact on the availability of Apple products in the United States.”

The Apple spokeswoman later went on: “Samsung is using a strategy which has been rejected by courts and regulators around the world.” She said. “They’ve admitted that it’s against the interests of consumers in Europe and elsewhere, yet here in the United States Samsung continues to try to block the sale of Apple products by using patents they agreed to license to anyone at reasonable fee.”

Samsung however said in tis filings, that it’s been offering Apple a license since November 2010 and “Apple has never been willing to take a license on any terms.”

Apple was previously involved with Samsung last year when it accused Samsung of copying its design of iPhones and iPads for its devices. Samsung was asked to pay $1bn to Apple which was later scaled down to $600m due to claims of miscalculation by another judge. An ITC judge in that case found that Samsung had violated one patent but not a second one. A final decision is due in August.

We are all watching; let’s see where this battle will lead to. Who will win? Who will lose?  Who will gain more market shares?

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