In a garnerfrom U.S. workRepresentative Michael Froman, the Obama cheekoverruled an spell outban on older iPhone and iPad models issued by the world(prenominal)Trade Commission at Samsung’s request earlier this year. The action allowsorchard apple treeto continue imports of AT&T models of the iPhone 4, iPad 3G, and iPad 2 3G.
The issue centers around patents held by Samsung for thecellulardata chips used in those devices. Samsung claimed Apple infringed on those patents, timeApple argued that Samsung’s patents were so-called “standards-essential patents” (SEPs) that Samsung had agreed to license at “fair, reasonable, and non-discriminatory” (FRAND) terms.
In vetoing the internationalisticTrade Commission’s decision, Froman highlights concerns that owners of SEPs who take uppreviously agreed to license patents lowthose FRAND terms can then engage in “‘patent hold-up’, i.e. take a firm standthe unmistakableto exclude an implementer of a standard from a merchandiseto obtain a higher price for use of the patent than would subscribe tobeen possible before the standard was set, when alternative technologies could have been chosen.”
Such administration action to veto an action by the International Trade Commission is rare. According to The Wall Street Journal, this is the offshoottime since 1987 that an administration has vetoed a ban ordered by the Commission.
The action doesn’t impact Samsung’s ability to continue its legal skirmishagainst Apple on the issue, but it means that it will have to take place in court, rather than before the ITC.
Froman’s letter (.pdf) also signals the intent of the Obama administration to keep a abuttingeye on the Commission in other cases involving SEPs, back upthe Commission to determine “whether a particular remedy is in the public interest.”
In January, the Department of Justice and the U.S. Patent and Trademarkpowerissued policy guidelines around SEP enforcement (.pdf) that Froman cites in his letter. These guidelines indicate that the administration sees injunctions and exclusion orders like the one Samsung sought aspotentiallyinconsistent with innovation and the broader public interest.
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Materials taken from WIRED
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