ITC

Ericsson, an early pioneer in cellphone technology, has upped the ante in a patent dispute with Apple by asking the U.S. International Trade Commission to block the import of iPhones into the country.

Ericsson owns patents to a number of fundamental technologies used in all cellphones, including LTE, and Apple had been paying royalties for these up until mid-January when the license fell due for renewal, reports Bloomberg … 
Expand
Expanding
Close

With a U.S. import ban previously issued by the ITC set to lock out certain Samsung devices at midnight last night, Bloomberg reports that the company has failed to obtain a veto from President Barack Obama:

The Korean company had argued that the ban should be overturned on public policy grounds, especially since a similar order it won against Apple was vetoed by the administration in August. Samsung can now seek a delay in the ban from a U.S. appeals court that will consider the entire case on legal grounds.

“After carefully weighing policy considerations, including the impact on consumers and competition, advice from agencies, and information from interested parties, I have decided to allow” the import ban to proceed, Obama’s designee, U.S. Trade Representative Michael Froman, said in a statement today.

In August, the US International Trade Commission ruled in favor of Apple and issued a sales ban on certain infringing Samsung devices in a long-running case that stemmed from a countersuit originally filed by Apple back in 2011. The news came shortly after the Obama administration’s decision to veto an ITC import ban on certain iPhone and iPad models that Samsung won in a separate case. Like Apple, Samsung was going to attempt to get a veto on the decision by the US President, the only person with the power to overturn ITC import bans. 
Expand
Expanding
Close

This afternoon, Apple and the DOJ will be in court to decide the fate of the agency model implementation in the iBookstore. The court has already ruled that Apple has been working with publishers to price-fix and raise the prices of ebooks, but now a punishment must be determined.

This morning, the DOJ responded to publishers’ concerns about the remedies and claimed that, since they are even responding together, they have shown once again how they are banded together (PDF of full response – via GigaOM):

Indeed, the very fact that the Publisher Defendants have banded together once again, this time to jointly oppose two provisions in the Proposed Final Judgment that they believe could result in lower ebook prices for consumers, only highlights why it is necessary to ensure that Apple (and hopefully other retailers) can discount ebooks and compete on retail price for as long as possible.

Expand
Expanding
Close

Photo: tractoroutdoor.com

The WSJ reports that more than a billion dollars were wiped off Samsung’s market value today following President Obama’s veto of the decision to ban the import of iPhone 4 and 3G iPad 2 devices into the USA. The fall represented 0.9 percent of the company’s market cap.

While a Presidential veto over-rules the original ITC ruling, the Financial Times reports that Samsung is appealing the ITC decision on the grounds that it only upheld one of the four patents it believes Apple has infringed. The appeal is expected to be held in Q1 2014. Were Apple to lose then, however, the impact would be significantly lower, as Apple is almost certain to have launched new iPhones and iPads by then, with the iPhone 4 and iPad 2 likely removed from Apple’s retail and online stores and seeing only residual sales elsewhere … 
Expand
Expanding
Close

Back in April we noted that the International Trade Commission had handed down a preliminary ruling that Samsung infringed an Apple patent related to a text-selection feature in a number of its Galaxy devices and other smartphones. Today, Reuters reports that an ITC trade panel will now reconsider the decision in a review of the previous ruling ahead of a final decision in the patent battle:

The International Trade Commission said late Tuesday it would take a second look at an ITC judge’s decision that Samsung had infringed one Apple patent for a text-selection feature in its smartphones and tablets.

Bloomberg adds that the panel is looking for “additional arguments on three of the four patents that Judge Thomas Pender said were infringed, and comments on how an import ban would affect the public.”

The panel will also reconsider a decision in the same case that Samsung didn’t infringe a different patent related to detecting when other devices are plugged into a microphone jack.

The ITC, which could impose an import ban on accused devices, is expected to deliver a ruling in Samsung’s case against Apple on May 31. A final decision in Apple’s case against Samsung is expected on August 1st. 
Expand
Expanding
Close

Apple’s decision to disable VPN on demand functionality on iOS due to the virnetX lawsuit isn’t the only patent related Apple news today. Head below for a roundup of Apple’s court woes and wins from earlier today:

Samsung infringes key text-selection patent: Reuters reports that the International Trade Commission has handed down a preliminary decision ruling Samsung infringed on an Apple patent related to a text-selection feature. However, the courts also ruled Samsung didn’t infringe another patent related to detecting when other devices are plugged into a microphone jack. If the text-selection decision is upheld, the result could be a U.S. import ban on Galaxy, Transform, and Nexus devices:
Expand
Expanding
Close

Following the verdict in the Apple vs. Samsung trial today, where Samsung was found guilty of infringing various Apple patents related to the case, Apple is also coming out a winner, at least temporarily, in Google/Motorola’s attempt to block imports of iPhones and iPads to the United States.

In late June, we told you about Google’s attempt to block U.S. imports of iPhones and iPads based on a previous ruling that Apple infringed on one standard-essential Motorola patent. The initial ruling was under review by the ITC, which has power to block U.S. imports of Apple devices from Asia, with a decision expected at a hearing scheduled for today.

The ITC has now concluded its review (via paid blogger FossPatents), finding no violations for three of the four patents in the initial suit (including the one mentioned above), but remanded an investigation on a fourth, non-standard essential patent to Judge Thomas Pender. The result? According to FossPatents, there might be a violation and import ban related to the patent, but a remand and ITC review could take up to a year:

Expand
Expanding
Close

Taiwanese handset maker HTC’s lawsuit against Apple over infringement of S3 Graphics’ patents has suffered a fatal blow (in addition to this one) as the United States International Trade Commission (ITC), which can block the import of products, reversed its earlier decision and ruled in favor of Apple on November 21. The Commission has officially ended its investigation of the case and HTC shares fell 4.9 percent on the news.

And now, Bloomberg reports that HTC “will reevaluate” its planned purchase of S3 Graphics following the ITC ruling.

HTC Corp. will reevaluate its planned purchase of S3 Graphics Co. after the target company lost a U.S. International Trade Commission ruling it brought against Apple Inc. over patent infringement, the Taoyuan, Taiwan-based company said in a statement today.

Just yesterday, HTC’s general counsel Grace Lei told DigiTimes yesterday his company “will consider an appeal”. But after closer inspection of the ITC ruling, the company clearly concluded the best course of action is to consider dropping the $300 million acquisition of graphics maker S3 Graphics announced back in June, which only proves this acquisition may have been planned as a leverage in HTC’s other legal dealings with the iPhone maker.

Expand
Expanding
Close

Didn’t know this:

But another peculiarity of the ITC is that its rulings can be waived by the president. Verizon thinks it would be great if President Obama, in a blanket statement, made clear he would not let stand any decision blocking importation of consumer wireless devices. The parties then would have to recur to normal patent litigation, and whatever rights and wrongs are discovered could be settled by exchanges of cash. Mobile is a rare industry exhibiting growth, job creation and animal spirits. Who needs a paralyzing meltdown?

It will be interesting to see if the President will override if Apple wins any of the blockades it is seeking against Android devices in the ITC.  IF he does, Apple/Google/Microsoft/whoever will have to go through the longer patent dispute process.

Both iPhones and Android devices could be blocked by pending ITC rulings.

Some background:
Expand
Expanding
Close