ITC Rules Apple Infringed on Samsung Patents, Issues Cease and Desist Order for Older Apple Devices

United_States_International_Trade_Commission_seal-1The U.S. International Trade Commission today reached a decision [PDF] in the ongoing Apple vs. Samsung case, ruling that Apple infringed on Samsung Patent No. 7,706,348, titled "Apparatus and method for encoding/decoding transport format combination indicator in CDMA mobile communication system."

The ITC has issued a cease and desist order that prohibits the sale and distribution in the U.S. of older Apple products that infringe on specific claims (75–76 and 82–84) of the '348 patent, which includes AT&T models of the iPhone 4 and 3GS, the iPad 3G and the iPad 2 3G.

Under the modified constructions, the Commission has determined that Samsung has proven that the accused iPhone 4 (AT&T models); iPhone 3GS (AT&T models); iPhone 3 (AT&T models); iPad 3G (AT&T models); and iPad 2 3G (AT&T models) infringe the asserted claims of the '348 patent. The win is the first in the United States for Samsung, after losing a major jury trial in 2012.

During the dispute, Apple unsuccessfully argued that as the '348 patent relates to standard technology that Samsung helped to establish, Samsung has a fair, reasonable, and non-discriminatory (FRAND) obligation that requires the company to license the patent on fair terms and prevents it from using the patent for an exclusion order.

The ITC did not agree, however, stating that Samsung's FRAND declarations "do not preclude issuance of the limited exclusion order and cease and desist order." Samsung reportedly demanded a licensing fee of 2.4% per device sold, which Apple found to be unreasonable.

The Commission has further determined that the properly construed claims have not been proven by Apple to be invalid and that Samsung has proven that a domestic industry exists in the United States with respect to the '348 patent.

The ITC's decision is a final ruling, but the ban will not go into effect immediately and could be overridden by the White House in the next 60 days. If the decision is not vetoed, Apple will be able to file an appeal.

Newer versions of Apple's iPad and iPhone, including the fourth generation iPad, the iPad mini, the iPhone 4S and the iPhone 5, use different technology that does not infringe on Samsung's patent and these later devices will not be subject to the cease and desist order.

Update: Apple spokesperson Kristen Huguet issued the following statement to AllThingsD.

We are disappointed that the Commission has overturned an earlier ruling and we plan to appeal. Today's decision has no impact on the availability of Apple products in the United States. Samsung is using a strategy which has been rejected by courts and regulators around the world. They’ve admitted that it’s against the interests of consumers in Europe and elsewhere, yet here in the United States Samsung continues to try to block the sale of Apple products by using patents they agreed to license to anyone for a reasonable fee.

AllThingsD has has also posted the full ITC order banning some of Apple's devices.

Top Rated Comments

thejadedmonkey Avatar
103 months ago
Samsung fans, tell me how "Apparatus and method for encoding/decoding transport format combination indicator in CDMA mobile communication system." is something you support going after anyone for.

I'm no Samsung fan, but I can tell you that developing microcontrollers and software for them isn't super easy. If Samsung did it, patented it, and then Apple used it, Apple is in the wrong.
Score: 22 Votes (Like | Disagree)
portishead Avatar
103 months ago
Just got a Galaxy S4 and in all honesty it makes the iPhone look like a kids toy.

If you haven't tried one then you really should. It genuinely is a far superior product and doesn't need to rely on smart marketing for features similar to Siri which frankly don't even work.

Korea > USA
I don't know what's worse, you trolling apple articles, the fact that you equated a phone to a whole country or that you haven't been banned yet.
Score: 20 Votes (Like | Disagree)
Oletros Avatar
103 months ago
People, just stop buying Samsung product.

Look at the future you are building by buying Samsung products: copy design like a cheap ripoff rogue company, use FRAND patents that will make you pay a license for every chipset you buy.

Nonsense

Nonsense, agree, there is no other word to describe your post.
Score: 15 Votes (Like | Disagree)
bbeagle Avatar
103 months ago
Samsung fans, tell me how "Apparatus and method for encoding/decoding transport format combination indicator in CDMA mobile communication system." is something you support going after anyone for.

If you say, 'But Apple started it', just makes Samsung as bad as you claim Apple to be, and no more taking the high-road with Samsung.
Score: 14 Votes (Like | Disagree)
thekev Avatar
103 months ago
Samsung fans, tell me how "Apparatus and method for encoding/decoding transport format combination indicator in CDMA mobile communication system." is something you support going after anyone for.

If you say, 'But Apple started it', just makes Samsung as bad as you claim Apple to be, and no more taking the high-road with Samsung.
There's no logic to any of it if it's an argument between fan bases. Also did you even read the claims or just the title? If you read the claims do you understand any of the terms used?
Score: 13 Votes (Like | Disagree)
Macboy Pro Avatar
103 months ago
Samsung fans, tell me how "Apparatus and method for encoding/decoding transport format combination indicator in CDMA mobile communication system." is something you support going after anyone for.

If you say, 'But Apple started it', just makes Samsung as bad as you claim Apple to be, and no more taking the high-road with Samsung.

Well, I am not a samsung fan, but Apple did go after a rectangle with rounded corners. :eek:
Score: 12 Votes (Like | Disagree)

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