In June,
ITC (International Trade Commission) ruled that Apple’s devices that infringed on Samsung’s 3G technology should be banned from the United States in what felt
like a big victory for Samsung back then. The products include iPhone 3, iPhone
3GS, iPhone 4, and iPad 2.
The only
hope that Apple had, which was a long shot was if the U. S. President Barack
Obama vetoed the ruling during the 60-day period before it takes effect. It was
a possibility but presidents rarely veto rulings by the ITC, in fact the last
time it occurred was Reagan in 1987 which surprisingly was also a case
involving Samsung.
Nevertheless,
the unlikely hope of rescue from Obama has proved to be the source of refuge
for Apple. The ruling should have taken effect on Monday 5th of August, 2013 if
it was not vetoed but it seems that is not going to happen according to the
latest development.
Barack
Obama’s administration had earlier advocated that cash fines should be issued
to companies instead of sales bans as sales bans give patent owners unfair
advantage in the market. Looking at it from that point may make the veto less
of a surprise.
U. S. Trade
Representative, Michael Froman released the statement for the United States.
These are excerpts:
“In addition, on January 8, 2013, the
Department of Justice and United States Patent and Trademark Office issued an
important Policy Statement entitled “Policy Statement on Remedies for
Standard-Essential Patents Subject to Voluntary FRAND Commitments” (“Policy
Statement”).2 The Policy Statement makes clear that standards, and
particularly voluntary consensus standards set by standards developing
organizations (“SDO”), have incorporated important technical advances that are
fundamental to the interoperability of many of the products of which consumers
have come to rely, including the type of devices that are the subject of the
Commission’s determination. The Policy Statement expresses substantial
concerns, which I strongly share, about the potential harms that can result
from owners of standards-essential patents (“SEPs”) who have made a voluntary
commitment to offer to license SEPs on terms that are fair, reasonable, and
non-discriminatory (“FRAND”), gaining undue leverage and engaging in “patent
hold-up”, i. e., asserting the patent to exclude an implementer of the standard
from a market to obtain a higher price for use of the patent than would have
been possible before the standard was set, when alternative technologies could
have been chosen. At the same time, technology implementers also can cause
potential harm by, for example, engaging in “reverse hold-up” (“hold-out”),
e.g., by constructive refusal to negotiate a FRAND license with the SEP owner
or refusal to pay what has been determined to be a FRAND royalty” part of
the statement reads.
“The administration is committed to
promoting innovation and economic progress, including through providing
adequate and effective protection and enforcement of intellectual property
rights. Relief available to the owners of intellectual property rights through
section 337 is an important facet of achieving that objective. At the same
time, standards, and particularly voluntary consensus-based standards set by
SDOs, have come to play an increasingly important role in the U. S. economy.”
another part of the statement read.
It must be noted that Apple started this series
of patent war last year when it dragged Samsung to court for copying the shape
of its devices. Samsung was fined $1 billion which was later reduced to $550
million by a court judge.
At the time of this report, both Apple and
Samsung have not commented about the latest development. However, I think Apple
will be more pleased to receive the news and Samsung will likely not be happy
that it lost a battle it thought it had won against its biggest rival and foe,
Cupertino-based Apple Inc.
We will bring you more details as we get more
reactions to this very important development, especially in the Apple vs
Samsung war.
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Obama blocks ITC ban on Apple’s devices