Apple’s last-minute rescue by the Obama administration

“In June, the U.S. International Trade Commission banned the import of older iPhones and iPads, ruling that the devices infringed on one of Samsung’s most basic patents, regarding the way cell phones connect to a network,” Michael Phillips reports for The New Yorker. “On Friday, however, the Obama Administration came to Apple’s rescue and vetoed the ban, a step no President has taken since 1987. (Samsung was the disappointed party then, too.) Obama did not simply bail out America’s homegrown high-tech champion; he showed how he plans to use the Oval Office to reform the U.S. patent system, one of the promised centerpieces of his technology policy.”

“In its complaint to the I.T.C., Samsung accused Apple of violating a number of patents. Ultimately, the I.T.C. found that Apple infringed just one of them, Patent No. 7,706,348, also known as the ’348 patent. Samsung says it is a ‘standard-essential patent,'” Phillips reports. “To facilitate the adoption of industry standards, standard-essential patents should be licensed at stress-free prices to anyone who wants to use them. (This is called ‘fair, reasonable, and non-discriminatory,’ or FRAND, licensing.)”

Phillips reports, “Samsung did not ask for billions of dollars in monetary damages, as Apple did in a recent, separate patent-infringement lawsuit against Samsung, in California. Instead of going to federal court to sue, Samsung went to the I.T.C… The I.T.C. obliged… But Samsung overplayed its hand. During the I.T.C. process, Apple argued that Samsung would only issue a license for the ’348 patent in exchange for a license to Apple’s nonessential patents—the patents covering the technologies that make the iPhone special and different from, say, Samsung’s phones. This demand, to essentially tie the licensing of Samsung’s standard-essential patent to Apple’s nonessential ones, earned Samsung a blistering dissent from one commissioner of the I.T.C. And now there is speculation that the other I.T.C. commissioners in fact granted the ban in order to trigger President Obama’s proposed I.T.C. reforms, which would make import bans more difficult to win… Obama’s veto should dim the attraction of the U.S.I.T.C. as a forum for patent disputes.”

Read more in the full article here.

Related articles:
Samsung shares extend losses ahead of U.S. Apple patent ruling – August 7, 2013
Why Samsung may fear Obama administration’s U.S. ITC Apple ban veto – August 5, 2013
Samsung sheds over $1 billion in market value after U.S. Trade Representative Froman vetoes Apple ban – August 5, 2013
How the ITC blew it, forcing a presidential veto in the Samsung-Apple patent case – August 5, 2013
Apple: ‘Samsung was wrong to abuse the patent system’ – August 5, 2013
South Korea concerned about U.S. decision to overrule Apple iPhone, iPad sales ban – August 5, 2013
Obama administration vetoes Apple iPhone sales ban in U.S. – August 3, 2013
Google ready to ditch Android over its intellectual property issues? – July 29, 2013

30 Comments

    1. ‘Merica! Dem, oh-crats and ‘Publicans all be crazy. Lie-ber-tariens are the only ones who git ‘er dun.

      If all dem Washington know-it-alls would bother to read past that there first amendment they’d see that my guns are what will keep them in line, will save us from the likes of Samscum and will one again make ‘mer-ca great!

        1. Ah I see so it is alright to create bigoted stereotype (strawman) of people from the south?

          Wow just wow. Every one who doesn’t agree with you is a idiot.
          Can you not see that your “new world order” is not inclusive, but rather is extremely divisive (like virtually every totalitarian socialist regime in history)

        2. You need to look up what Totalitarianism is, my friend. It is 180 degrees from what most (nearly all) on the “right” (tea party included) are, but frighteningly close to what is happening on the left, right now.

  1. With one mighty stroke of his veto pen, Barack Obama has solidified his legacy as one of the greatest Presidents this country had ever had. Just like he shocked life into the economy with his American Recovery and Reinvestment Act, pulling the country and, by proxy, the world from the brink of another depression, President Obama has now shocked the forces of Apple mimicry. The government is standing behind the Cupertino Goliath and repelling the wicked hordes who wish to bring one of America’s most legendary innovators to her knees. Barack Obama stands with Apple. Barack Obama is a protector of free thinking, hard work and individuality. Barack Obama had no choice but to make a command decision as the guardian of American values.

      1. Lots of people make lots of decisions every day. Only a small subset are “command” decisions.

        Similarly, lots of people issue lots of commands every day. Only a subset of those commands require a significant decision or were made after making a significant decision.

        Anyway, R2’s satire was pretty funny. It illustrates just how ludicrous the extreme viewpoints tend to be, assigning way to much credit or way too much blame/responsibility relative to reality.

        He made the right decision in this situation. I’m glad to see it, but there is no reason for a parade. There is still lots of work to be done.

  2. “And now there is speculation that the other I.T.C. commissioners in fact granted the ban in order to trigger President Obama’s proposed I.T.C. reforms, which would make import bans more difficult to win…”

    That is total BS.

    They should have denied the ban in the first place on the grounds that Samsung were abusing FRAND agreements, but they imposed a ban regardless. Having seen the negative comments, it looks as though the ITC is trying to rewrite history and spin the story into some sort of cunning plan.

    Making the right decision in the first place would have ensured that a presidential veto was unnecessary and would have avoided the ITC ending up looking foolish.

    ITC reforms could have proceeded anyway and so long as import bans are only imposed for appropriate reasons, requesting an ITC import ban would no longer be an attractive option.

    The ITC got themselves into this mess and it could have so easily have been avoided.

    1. They could have done it to make things more high profile, I suppose, but it doesn’t really make sense does it? After all, are people still talking about this import ban?

      The more likely case is that they were paid off.

  3. Is this to bring to mind a heroic entrance to save a company flush with cash and the business sense to spend wisely? Well, maybe for the dim bulbs that think the government is the solution. Actually, it should be noted the blunder(s) the government has made with FRAND ruling(s). The fact that Samsung sought to force Apple to license patent(s) that it would or will use to differ its product form that of it competitors.

    In short.

    A chip with the Samsungs SEP/FRAND tech is placed in the iPhone.
    The chip is licensed to use the Tech.
    Samsung tells Apple to license it again under SEP/FRAND.
    Samsung asks for high licensing fee and non SEP/FRAND patents
    Samsung fails to bend Apple.
    Samsung goes to ITC.
    Sentors warn ITC of SEP/FRAND abuse, warn ITC of banning SEP/FRAND
    ITC say screw you and bans iPhone that uses the chip
    Obama rides to Apples rescue? Save Patent system? Not.
    Obama reverses a ruling that should have been a licensing issue.
    Obama did the correct action.
    Apple is not saved by Obama or the government.
    Stupid political bent on the ruling.

    Apple 1

  4. Obama did the right thing. While relatively rare, it has happened before. Sometimes when he does the right thing, he does it for the wrong reason. You never really know what his thinking is.

    Somehow I suspect he was thinking, “Screw you Samsung, that’s my, uh, the American people’s money.”

    1. That’s your opinion…an overly negative one in my book, but much milder than most of the political opinions expressed in this forum. He has likely made a huge number of decisions with which you are unaware, so you have no basis upon which to state that correct decisions are “relatively rare.” And, of course, you reveal your bias in your final sentence.

  5. “Last-minute,” yes. “Rescue,” hardly…

    The models affected, the GSM iPhone 4 and iPad 2, are going to be intentionally retired in the next 1-3 months. And all other (more recent) products were not affected at all by the ban.

  6. Obama is without a doubt the most incompetent, worst president in history! Everything he touches turns to sh*t! He needs to keep his narcissistic hands off Apple and go away forever! Scandal after scandal after scandal and the diaper-wearing liberals who often vote multiple times with Holder’s blessing keep electing this fool! To hear him mentioned in the same sentence as Apple, disgusts me! Most anti-business president with zero executive or business experience running the country! How’s that working out for ya?

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