Presidential Veto On Apple Product Ban Worries South Korea

The Obama administration’s 11th-hour veto of a U.S. International Trade Commission (ITC) ban on imports of a number of older Apple devices, including the iPhone 4, is being criticized by South Korea.
The presidential veto over the weekend— the first such action since 1987 —effectively erases South Korean technology giant Samsung’s patent victory over American firm Apple.
The ITC ruled early last month that the iPhone maker breached a Samsung patent covering wireless transmission technology and, as a result, banned the imports of the iPhone 4, the iPhone 3GS, the iPad 3G, the iPad2 3G and the iPad 3. Because the devices are manufactured in China, the ban would prevent Apple from selling the devices in the U.S. The ban was set to take effect Monday.
The South Korean government, however, voiced its apprehension that the action could hurt Samsung, adding that the action could have a “negative impact … on the protection of patent rights,” according to Korea’s Chosen Media.

The country’s Ministry of Trade, Industry and Energy vowed to keep a close eye on the ITC’s ruling, set for Friday, on if Samsung infringed any of Apple’s patented technologies. The ministry said it expects a “fair and rational” ruling.

U.S. President Barack Obama has made it no secret that he is largely opposed to sales bans, although experts were uncertain if he would intervene on Apple’s behalf.
The veto was sent to ITC Chairman Irving Williamson by U.S. Trade Representative Michael Froman on the president’s behalf.
Froman, in a letter to Williamson, said after extensive review he had decided to disapprove of the ITC ruling because of the effect it would have on “competitive conditions in the U.S. economy and the effect on U.S. consumers.”
“The administration is committed to promoting innovation and economic progress, including through providing adequate and effective protection and enforcement of intellectual property rights,” Froman wrote, adding that his decision is not a criticism of the ITC’s analysis. He said Smasung is entitled to continue to pursue a “remedy” through the courts.
Froman said he would closely examine all future cases involving the licensing of standard essential patents to ensure decisions made do not impact public interests or the economy.
While Apple, which accused Samsung of abusing the patent system, said it applauded “the administration for standing up for innovation in this landmark case,” Samsung said it was “disappointed” by the decision.
“The ITC’s decision correctly recognized that Samsung has been negotiating in good faith and that Apple remains unwilling to take a license,” Samsung said in a statement.
The Apple products ban is far from the final chapter in the Apple-Samsung patent battle that began in earnest two years ago. Apple was the first of the two companies to score a victory: A jury verdict last August found Samsung had violated six of Apple’s patents and the South Korean company was ordered to pay Apple $1.05 billion. If the ruling holds up, it will set the record as the largest patent verdict in history.
Apple appealed for more than half a billion dollars in additional damages against Samsung for patent violation after losing its bid for a sales ban against 26 of Samsung handsets last fall.
Samsung and Apple will find themselves in court for yet another patent violation trial next year. Unlike the previous patent lawsuit that Apple won against Samsung last August, the current lawsuit addresses software and user interface patents, including the rights to the search technology integrated in the iPhone Siri voice feature.