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South Korea allows Samsung to continue use of SEPs in litigation, rejects Apple complaint

post #1 of 35
Thread Starter 
South Korea's antitrust authority, the Korea Fair Trade Commission, on Wednesday rejected an Apple complaint asserting Samsung is unfairly leveraging its portfolio of standard-essential wireless patents against rivals in ongoing litigation.

KFTC


The KFTC ruled against Apple's complaint against Samsung's alleged abuse of standard-essential patents, saying the South Korean company's court actions do not break Korean antitrust law, reports The Korea Times.

"What's important is how sincerely the two companies tried to resolve the patent dispute, but it is difficult to believe that Apple was sincere in negotiating with Samsung to iron out their differences," an unnamed KFTC official said. "Therefore, we don't think Samsung unfairly used the lawsuit to hinder Apple's business activities."

Wednesday's decision stems from Apple's 2012 complaint that Samsung misuses SEPs for 3G wireless technology to gain an unfair advantage over the competition. These patents are supposed to be licensed under fair, reasonable and non-discriminatory (FRAND) terms.

As noted by FOSS Patents' Florian Mueller, the KFTC's wholesale rejection of Apple's complaint stands in stark contrast against identical investigations conducted by competition watchdog agencies in other countries. For example, both the U.S. Department of Justice and the EU's European Commission voiced concern over Samsung's use of FRAND patents as litigious weapons.

Although it closed an investigation into the matter without taking action earlier this month, the U.S. Department of Justice admonished Samsung for using SEPs as litigious weapons. The DoJ promised to monitor the company as pending litigation, such as the second Apple v. Samsung California patent trial, moves forward.

However, Mueller believes the KFTC's decision came largely as a result of a "soft line" stance on SEP issues taken by the U.S. and EU commissions. He cites the South Korean body's determination that Samsung did not have monopoly power because "more than 50 companies hold over 15,000 SEPs relating to 3G wireless communication (UMTS/WCDMA) technology," which is different from a case where "only one essential facility exists."

"This makes no sense at all because any one SEP (if truly essential to the standard, of course) can force someone out of the market," Mueller writes. "If Apple didn't need a license to Samsung's 3G SEPs on FRAND terms because it could, as it has, secure a license to, for example, Ericsson's SEPs reading on the same standard, then Samsung wouldn't have essential-facility power. But that's simply not the case."

Finally, the KFTC decision takes into account that Apple was first to file a patent lawsuit against Samsung and was therefore responsible for a litigious "negotiation atmosphere." Mueller points out that Apple sued Samsung over non-SEPs, which should be handled differently than declared standard-essential properties.

In a statement related to this idea, the KTFC official said, "Samsung with the standard-essential patents based on the FRAND licensing terms tried to resolve the matter and the level of patent license fee was not so high. Samsung's lawsuit is a legitimate act to protect its patent rights."
post #2 of 35

Cheater cheater pumpkin eater.

post #3 of 35
Shock and horror
post #4 of 35

Samsung = Corrupt company from a corrupt racist country. No surprises there. 

 

F Samsung.

post #5 of 35
Apple and Samsung should do a deal - Apple won't sell iPhones in Korea and Samsung won't sell their copies of iPhones in the US.
post #6 of 35

If the US and EU are against abusing SEPs then some crooked judge in Korea is getting paid big bucks to allow it.  Samsung phones need to be banned in the US asap for copying and other IP violations.

post #7 of 35
I'll be interested to see if the KFTC keep this soft-tact when small SEP holders begin to hold out and hard-bargain with Samsung in South Korea. The 'ND' in FRAND is supposed to mean non-discriminatory, that's something that does not cater for softly defined decisions.

While KFTC may find this tact is a useful service for one of their countries largest businesses. As their country has a large electronics manufacturing industry the long term result can only be a negative, complex and needlessly litigious one.
post #8 of 35
Quote:
Originally Posted by radster360 View Post

.....Oh I forgot, Lucy Koh is Korean!

You mean the same Judge Koh that presided over the $1 billion dollar judgement against her "Home Town Company"?
post #9 of 35

I met a Korean,

Nice man but a liar.

Told me he was Chinese

so I sympathised,

and passed him by.

Regrets are the rites of dragon slayers

and now to bed,

I, to lie there,

to wonder how

some weave their tales

and face the morning.

When I find time to rewrite the laws of Physics, there'll Finally be some changes made round here!

I am not crazy! Three out of five court appointed psychiatrists said so.

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When I find time to rewrite the laws of Physics, there'll Finally be some changes made round here!

I am not crazy! Three out of five court appointed psychiatrists said so.

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post #10 of 35
Quote:
Originally Posted by Lord Amhran View Post
 
Quote:
Originally Posted by radster360 View Post

.....Oh I forgot, Lucy Koh is Korean!

You mean the same Judge Koh that presided over the $1 billion dollar judgement against her "Home Town Company"?

my memory might be a bit foggy, but wasn't it the jury that awarded the $1 billion judgement and not the Judge?  Also, I'm not too sure, but wasn't it this same Judge that tried to clear out almost 1/2 of this $1 billion award...only to have a second completely different jury in a second trial give most of it right back to Apple? I guess its possible I dreamed the whole thing. Seems too much like soap opera than reality.


Edited by snova - 2/27/14 at 2:30am
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"Building for the future?! They should be running around reacting to the present!" -John Moltz
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post #11 of 35
Quote:
Originally Posted by radster360 View Post

Oh I forgot, Lucy Koh is Korean!

 

You also forgot she is Korean-American. Born and raised in the USA. Harvard grad.

"You can't fall off the floor"   From 128k Mac to 8GB MBP

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"You can't fall off the floor"   From 128k Mac to 8GB MBP

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post #12 of 35
It's been a while that I have stopped even looking at anything with Samsung name on it! My last big purchase was a 60" TV. No matter how hard the sales guy tried, I chose SONY instead!

Now, with all that said, how the f**k Americans still pay to buy some crap made by Samsung?!!

....the lack of properly optimized apps is one of the reasons "why the experience on Android tablets is so crappy".

Tim Cook ~ The Wall Street Journal - February 7, 2014

Inside Google! 

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....the lack of properly optimized apps is one of the reasons "why the experience on Android tablets is so crappy".

Tim Cook ~ The Wall Street Journal - February 7, 2014

Inside Google! 

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post #13 of 35
...
Edited by Disturbia - 2/27/14 at 4:13am

....the lack of properly optimized apps is one of the reasons "why the experience on Android tablets is so crappy".

Tim Cook ~ The Wall Street Journal - February 7, 2014

Inside Google! 

Reply

....the lack of properly optimized apps is one of the reasons "why the experience on Android tablets is so crappy".

Tim Cook ~ The Wall Street Journal - February 7, 2014

Inside Google! 

Reply
post #14 of 35
There's no bride or any dirty here.
Anyone who know South Korea knows K-Gov = Samsung. (Maybe 10% is LG, but it's a time share. )
Why else could a guy caught red handed with briding, tax fraud, antitrust, and block labor union can simply get a pardon because he pay money to Olympic, and still got to be a corporation chairman?
Basically in South Korea, anyone who has a name in his/her field, their family must got money from Samsung somehow. And no one care.
Forget China, US should get back the jobs Samsung steal.
post #15 of 35
Actually I don't think it's the Korean courts defending its own, but just that Sammy wrote a bigger check.
post #16 of 35
Quote:
Originally Posted by jungmark View Post

Actually I don't think it's the Korean courts defending its own, but just that Sammy wrote a bigger check.

And yet there was this one from just a few months ago where South Korean courts tossed a Samsung complaint against Apple. Huh.
http://appleinsider.com/articles/13/12/11/apple-gets-court-win-in-south-korea-as-court-tosses-samsung-patent-claim
melior diabolus quem scies
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melior diabolus quem scies
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post #17 of 35
Quote:
Originally Posted by Disturbia View Post

It's been a while that I have stopped even looking at anything with Samsung name on it! My last big purchase was a 60" TV. No matter how hard the sales guy tried, I chose SONY instead!

Now, with all that said, how the f**k Americans still pay to buy some crap made by Samsung?!!

 

You nailed it - Magnolia recommended a Samscum for my media room - I would have paid less for the Samscum - but I ended up paying around $7K or so for Sony 60 inch plus recollect -

 

I would give up TV before buying any Samscum product - 

 

S thinks they are scoring by "bribing" or equivalent pressure in their country - but no - they are losing - I would bet they are losing BILLIONS in sales/profit from what they would be getting if they played straight - e.g., don't steal from Apple, don't bribe or similar et al -  if they paid a reasonable license fee they would have ++++++++++++++++sales, more purchasing of parts by Apple - they are NUTS

 

I will not buy any product whatsoever - even a product that Apple will never produce - ANYTHING

post #18 of 35
Shady business, unimaginative products and oh so many missed opportunities (they KNEW the biggest complaint on their phones was, besides being a TOTAL crap-feast and butt ugly looks that EVERYONE HATED the plastic feel, you know, the feeling of a cheap product - and Samsung launches yet ANOTHER plastic shit. Although, I got to say, it does represents the truth (of being cheap and substandard product).

Keep it up Samsung. We are DEFINITELY admiring your horrible business morals. /s
post #19 of 35
Quote:
Originally Posted by mhikl View Post

I met a Korean,

Nice man but a liar.

Told me he was Chinese

so I sympathised,

and passed him by.

Regrets are the rites of dragon slayers
and now to bed,
I, to lie there,
to wonder how
some weave their tales
and face the morning.

Very nice, mhikl. Very nice!!
post #20 of 35

I was in the market for a TV in February, I did not even look at the Samsung TVs because of their immoral and illegal practices. I just went with a Sony. Samsung has lost my business.

post #21 of 35

Seems to me that the path is clear for Apple now. Take some of that $100+ billion dollars that it has overseas and buy up some SEP. Then give Samsung the exact same licensing deal that Samsung gives them. Given how many more cheap POS phones Samsung sells I envision Apple making far more money off of Samsung than the other way around.

 

Or even better. Give the same SEP away free to everyone except Samsung. Of course, only do this in Korea.

 

The problem with all of this is that Samsung is trying to leverage SEP to gain access to non-SEP. That is not how SEP is supposed to be used and both the US and EU have realized and warned Samsung about it. Korea of course didn't, and I am sure that the level of corruption displayed by Samsung time and time again has absolutely nothing to do with that decision.

post #22 of 35
Quote:
Originally Posted by NOS2U View Post
 

I was in the market for a TV in February, I did not even look at the Samsung TVs because of their immoral and illegal practices. I just went with a Sony. Samsung has lost my business.

 

Right there with all of you. I refuse to buy anything Samsung anymore. Somebody over there had better wake up and realize that this idiocy in their phone division is starting to spill over into their other divisions.

 

Then again, given how much Apple seems to be working to divorce themselves from Samsung's component division I am sure that they are aware of it and simply don't care. Samsung is a horrible company, but they know how to play the political game and are free with their money where they need to be; buying off politicians, judges, celebrities, and journalist.

post #23 of 35
Love that KFTC original recipe fried chicken.

Proud AAPL stock owner.

 

GOA

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Proud AAPL stock owner.

 

GOA

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post #24 of 35

The danger for Samsung or anyone that abuses SEP's, is that they will not be invited for setting future SEP's.

post #25 of 35
Quote:
Originally Posted by snova View Post
 

my memory might be a bit foggy, but wasn't it the jury that awarded the $1 billion judgement and not the Judge?  Also, I'm not too sure, but wasn't it this same Judge that tried to clear out almost 1/2 of this $1 billion award...only to have a second completely different jury in a second trial give most of it right back to Apple? I guess its possible I dreamed the whole thing. Seems too much like soap opera than reality.

 

@snova: Sure, Judge Koh played her role - by rejecting disproportionate amount of Samsung's expert witnesses and crucial evidences on procedural ground. You know, it takes two to tango.  And, no.  The damage only re-trial whittled down the first jury verdict by $150M which isn't too shabby.

post #26 of 35
I also am boycotting Samsung products. There is a boycott Samsung Facebook group. Boycottsamsung.com is available to buy. We should start an American revolution against Samsung except there are too many morons in America who will buy regardless. So sad.
post #27 of 35

maybe we should withdraw our troops from South Korea?

post #28 of 35
korea fair trade commission? sounds like a conflict in terms.
post #29 of 35
Quote:
Originally Posted by RonMG View Post

I also am boycotting Samsung products. There is a boycott Samsung Facebook group. Boycottsamsung.com is available to buy. We should start an American revolution against Samsung except there are too many morons in America who will buy regardless. So sad.

It's not a cause the general public will get behind, unfortunately.

"Apple should pull the plug on the iPhone."

John C. Dvorak, 2007
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"Apple should pull the plug on the iPhone."

John C. Dvorak, 2007
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post #30 of 35
I wonder how long this will be going on for, just indefinitely? Apple will come out with a product or idea and Samsung will copy it regardless. Samsung is such a reactionary company, I can't stand companies or people that copy other people. It isn't hard to come up with original ideas.
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My blender/recipe blog: http://blenderinsider.com
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post #31 of 35
No big surprise there. They will do and say anything to defend their Korean friends.
post #32 of 35
Seems clear that Samsung should be blocked from using their tech in any future standards.
post #33 of 35

Time for Rockstar to take their SEP's to the South Korean courts, now they have the green light to abuse them.

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post #34 of 35

And this is not reported in the NY Times or WSJ because... ?

 

(Hint: which company pays a ton for advertising and which company is believed to be capable of paying more?)

post #35 of 35

There's a shocking amount of overt racism in some of the comments in this thread.

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