U.S. ITC rules for Samsung, bans Apple iPhone 4 imports into U.S.

“A U.S. trade agency on Tuesday issued a ban on imports of Apple’s iPhone 4 and a variant of the iPad 2 after finding the devices violate a patent held by South Korean rival Samsung Electronics,” Peter Svensson reports for The Associated Press. “Because the devices are assembled in China, the import would end Apple’s ability to sell them in the U.S.”

“However, President Barack Obama has 60 days to invalidate Tuesday’s order from the U.S. International Trade Commission in Washington,” Svensson reports. “Obama is against import bans on the basis of the type of patent at issue in the Samsung case. On Tuesday, the White House issued a recommendation to Congress that it limit the ITC’s ability to impose import bans in these cases.”

Svensson reports, “Apple Inc. said it was ‘disappointed’ with the ruling and will appeal… Apple Inc. said it was ‘disappointed’ with the ruling and will appeal. Cupertino, Calif.-based Apple launched the iPad 2 in 2011. The ruling applies only to the version equipped with a cellular modem for AT&T’s network. The ruling also applies to older iPhones, though these are no longer sold by Apple.”

Read more in the full article here.

“Apple will appeal the ruling to the United States Court of Appeals for the Federal Circuit and said in a statement that there’s no impact (for the time being) on the availability of iPhones and iPads in the U.S. market,” Florian Müller reports for FOSS Patents.

“I can’t believe that the ITC has completely thrown out Apple’s FRAND defense (‘[t]he Commission has determined that Samsung’s FRAND declarations do not preclude [import bans]’), taking a position that is fundamentally inconsistent not only with how U.S. federal courts have recently adjudged SEP-based injunction requests but also with opinions expressed by antitrust regulators and, especially, U.S. lawmakers,” Müller writes. “With a view to this decision, four Senators and four Congressmen (from both sides of the aisle) reiterated concerns over SEP-based import bans. Last year the Senate and the House of Representatives held hearings on this issue, with bipartisan consensus that holders of SEPs should not be allowed to renege on their FRAND licensing pledges by seeking import bans from the ITC that federal courts would likely deny.”

Müller writes, “The White House earlier today proposed a package of patent reform measures, and the fifth legislative proposal on this list aims to raise the bar for ITC exclusion orders… Under these circumstances it is quite possible that the White House will veto the ITC’s decision, and the ITC could not have done more to show to Congress that its granting of injunctive relief is far too permissive and a threat to the U.S. tech sector, irreconcilable with the ITC’s original mission to protect domestic industry against unfair imports.”

“Depending on how quickly Congress will fix the problem that the ITC gives SEP abusers and patent trolls access to injunctive relief that they wouldn’t win in U.S. federal court, the impact of today’s decision on other cases may be limited,” Müller writes. “But if Congress doesn’t move quickly, other SEP abusers might be able to leverage today’s decision in settlement negotiations with implementers of industry standards.”

Read more in the full article here.

MacDailyNews Take: Surprise, surprise, surprise!

(After reading this ruling, Gomer Pyle immediately sprang to mind.)

Obviously, something’s very broken here and it needs to be fixed ASAP.

70 Comments

  1. Can’t believe this …….. Only in America we woud find a government agency after a US Corporation that boosted local economy not in US but around the world. All others followed Apple and copied its innovation. From iPhone to iPods to iPads ….. I bet Steve feels very uneasy! Rest his soul……. Man with a dream.

  2. Not happy about this at all. The stock should be rising above $460 and now its down $5. Since last September it is just whack, smack, bend over with Apple. The WWDC better pack a wallop.

  3. My house now has 5 banned Apple products! Sweet! Are they worth more on eBay or is there some black market site I need to know about to get the most for my money?

    The good news is that now I’m finally free to buy that Samsung 231″ 4K 360Hz 3D TV I’ve been lusting after but wouldn’t buy on principle.

  4. Look, Apple plays hardball… Samsung was asking a little more, Apple wanted a little less. There isn’t a set price on licensing an SEP. Apple took the chance and… Got away with it. Just like Samsung copied Apple and got away with it… What is stupid is that they have to play this pointless game… 600 million is what the US says Apples patents are worth… But another part of the US says they deserve 35 billion just on tax from those patents in use… A ban on an old phone that is scheduled to be dropped from the line anyway? Just stupid. The system is too old and these companies are both playing the best game they can… Well, a game is a bad analogy, a street fight is more like it.

    1. “Samsung was asking a little more, Apple wanted a little less.” LOL, these little differences can add up. Consider the recent Motorola-Microsoft imbroglio: “As reported in the press, Microsoft calculates that on the basis of these rates, it would owe Motorola approximately $1.8 million per year, as opposed to Motorola’s original 2010 demand of approximately $4 billion, or the annual amount it requested at trial, which was approximately $400 million.”

  5. It’s called KARMA and Apple deserves every bit of it. They love to sue EVERYONE and now they are getting a taste of it! Good Job ITC! Keep on suing Apple! Keep on abusing!

  6. I can only assume that this means that Apple refused to license this technology offered to them by Scamsong under fair, reasonable, and non-discriminatory terms, otherwise, how could it make any sense at all? What I don’t understand is why this case has come to a conclusion, while those where Apple is suing Sameshit drag on and on and on.

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