ITC judge: Samsung should post massive bond ahead of US sales ban

Posted:
in General Discussion edited January 2014
Samsung products found to infringe on certain Apple patents may be subject to a sales ban if the U.S. International Trade Commission affirms and adopts an initial determination filed by one of its administrative law judges, who also recommended the Korean company post a huge bond worth 88 percent of its U.S. smartphone sales.

Judge Pender
U.S. Administrative Law Judge Thomas Pender. | Source: USITC


While the Friday filing does not necessarily mean Samsung will face an import ban, Judge Thomas Pender's recommended determination on remedy and bond could lead to hefty sanctions for the Galaxy maker if the six-member Commission agrees with his findings and adopts the suggested solution.

The recommendations are a continuation of a preliminary ruling handed down by Judge Pender in October which found Samsung to infringe on four Apple design utility patents.

As noted by FOSS Patents' Florian Mueller, the proposed sanctions consist of a U.S. sales ban, a simultaneous cease-and-desist order prohibiting the sale of "commercially significant" quantities of infringing products and a series of bond requirements.

Samsung was originally pushing for a 4.9 percent royalty rate baed on "price differential analysis," but the ALJ suggested a requirement of 88 percent of the value of all mobile phones, 37.6 percent of all tablet computers and 32.5 percent of all media players found to infringe on Apple's patents. The bonds would be posted during the Presidential review period, which would last 60 days following a final ITC decision in favor of a sales ban.

ITC staff said Judge Pender's smartphone bond rate is based on an overweight price differential between the two parties' products as Samsung sells higher volumes of low-priced devices that don't compete with Apple's iPhone. The judge disagreed and pointed to an internal Samsung document that said the U.S. smartphone market was "becoming a Two Horse Race Between Apple & Samsung," suggesting the South Korean tech giant was strategically undercutting Apple's offerings.

ITC Logo


A sales ban and bond remedy may be unlikely, however, as Judge Pender also outlined a number of workarounds Samsung can implement to overcome the proposed sanctions. Also, the Commission may not sign off on the ALJ's recommendations as Apple's case was recently weakened when the U.S. Patent and Trademark Office invalidated one of the patents-in-suit in a non-final office action earlier this month.

The ITC case is separate from the watershed Apple v. Samsung court trial, in which Apple is also seeking a sales ban as part of post-trial proceedings, and an upcoming federal court case scheduled to begin in 2014.

«134567

Comments

  • Reply 1 of 137
    What do you know? Maybe the ITC's got teeth.
  • Reply 2 of 137
    I'll be glad when this is all finally over and the smoke clears. I don't even care anymore who wins or loses I just want to see a result.
  • Reply 3 of 137
    kr00kr00 Posts: 99member
    Well well. The emperor has no clothes, and samscum find the tables turned. Best they scamper away with their tail between their legs and stop with the childish subterfuge. We know what you are. Now get on doing something that isn't derived from other peoples thoughts. Even you cheap a$$ed users deserve better.
  • Reply 4 of 137
    But, but, but Android is winning....

    And Apple is DOOMED!!!
  • Reply 5 of 137
    kr00 wrote: »
    Well well. The emperor has no clothes, and samscum find the tables turned. Best they scamper away with their tail between their legs and stop with the childish subterfuge. We know what you are. Now get on doing something that isn't derived from other peoples thoughts. Even you cheap a$$ed users deserve better.

    If it wasn't for Samsung, WP7, and even Palm might have been doing better, both of which weren't iOS rip-offs. If it wasn't for Samesung, maybe even the Nexus line of phones would be doing decent, which while largely an iOS ripoff through Android, at least had differentiating hardware.
  • Reply 6 of 137
    I'm lost... I thought some of the inflecting Patents got declared null and void? Where does that stand in relation to this and the California Apple v Samsung case?
  • Reply 7 of 137
    sr2012sr2012 Posts: 896member
    You'd be surprised for me to say this, but Samsung deserves this. I still think though Schmidt and Google should balls up and take some of the heat instead of cruising by untouched.
    addicted44 wrote: »
    But, but, but Android is winning....
    And Apple is DOOMED!!!

    Sorry to burst your bubble, but none of this stops Android's momentum and inevitable eclipsing of Apple on both smartphones (already) and tablets (within 2 years max).
  • Reply 8 of 137
    Judge Thomas Pender's recommended determination on remedy and bond could lead to hefty sanctions for the Galaxy maker if the six-member Commission agrees with his findings and adopts the suggested solution.

    If a jury member has any knowledge on a case for which they are doing their jury task they are expelled, but it's ok for a judge to make recommendations to the Commission on which way to take a ruling? That doesn't seem right. Then again, the American legal system doesn't seem right. To me, without any knowledge on law, so things might be very logical if you studied law.
    A sales ban and bond remedy may be unlikely, however, as Judge Pender also outlined a number of workarounds Samsung can implement to overcome the proposed sanctions.

    A judge outlining workarounds. Around the law? Wow. Just wow.

    sr2012 wrote: »
    Sorry to burst your bubble, but none of this stops Android's momentum and inevitable eclipsing of Apple on both smartphones (already) and tablets (within 2 years max).

    And I hope we get to see that sooner even! Just think how few people will visit this site if Apple only has single-digit smartphone & tablet market share. I'd love that!
  • Reply 9 of 137

    Quote:

    Originally Posted by AnalogJack View Post



    I'll be glad when this is all finally over and the smoke clears. I don't even care anymore who wins or loses I just want to see a result.


     


    These lawsuits are never going to end...  Apple will always find someone to sue,


     


     


    Apple Sues Polish Grocery Store Over A.pl Name


     


    http://www.pcmag.com/article2/0,2817,2409669,00.asp

  • Reply 10 of 137
    tooltalk wrote: »
    These lawsuits are never going to end...  Apple will always find someone to sue,


    Apple Sues Polish Grocery Store Over A.pl Name

    What's next? Apple suing NYC for the use of their name¿
  • Reply 11 of 137
    nhtnht Posts: 4,437member

    Quote:

    Originally Posted by sr2012 View Post



    Sorry to burst your bubble, but none of this stops Android's momentum and inevitable eclipsing of Apple on both smartphones (already) and tablets (within 2 years max).


     


    Eclipsing the iPad by Jan 2015 MAX?  LOL.


     


    Despite the older slower hardware the iPad Mini is faster than the Nexus 7 at a lot of things.  With an A6 + retina update next year it'll be a no compromise tablet.


     


    http://www.pocketgamer.co.uk/r/iPad/Need+for+Speed:+Most+Wanted/feature.asp?c=46679

  • Reply 12 of 137

    Quote:

    Originally Posted by bottleworks View Post



    I'm lost... I thought some of the inflecting Patents got declared null and void? Where does that stand in relation to this and the California Apple v Samsung case?


     


    Well, I hate to say this, but there is no way that Samsung would get fair trials in the US.


     


    The legislative branch just passed a Apple-friendly design patent law, Patent Law Treaties Implementation Act of 2012, which increase the patent terms 1 more year and broadens the scope of design patents.  Obama signed it into law last week.  I wouldn't be too surprised there are more on the way.  


     


    "Here Comes the Design Patents: new laws boost rights in shapes and design."


    http://gigaom.com/2012/12/27/here-come-the-design-patents-new-law-boosts-rights-in-shapes-designs/

  • Reply 13 of 137
    matrix07matrix07 Posts: 1,993member
    sr2012 wrote: »
    Sorry to burst your bubble, but none of this stops Android's momentum and inevitable eclipsing of Apple on both smartphones (already) and tablets (within 2 years max).

    Why does it even matter when a majority of users (who just want cheap gadgets) are using the OS they really don't care about. Is that something to boast?
  • Reply 14 of 137
    rogifanrogifan Posts: 10,669member
    tooltalk wrote: »
    Well, I hate to say this, but there is no way that Samsung would get fair trials in the US.

    The legislative branch just passed a Apple-friendly design patent law, Patent Law Treaties Implementation Act of 2012, which increase the patent terms 1 more year and broadens the scope of design patents.  Obama signed it into law last week.  I wouldn't be too surprised there are more on the way.  

    "Here Comes the Design Patents: new laws boost rights in shapes and design."
    http://gigaom.com/2012/12/27/here-come-the-design-patents-new-law-boosts-rights-in-shapes-designs/
    Yeah because Apple is the only company awarded design patents. :rolleyes:
  • Reply 15 of 137
    rogifanrogifan Posts: 10,669member
    tooltalk wrote: »
    These lawsuits are never going to end...  Apple will always find someone to sue,


    <h1 style="margin-top:0px;margin-bottom:0px;padding-top:6px;padding-bottom:15px;border-width:1px 0px 0px;border-top-style:solid;border-top-color:rgb(204,204,204);font-weight:bold;font-size:28px;font-family:arial;vertical-align:baseline;line-height:32px;">Apple Sues Polish Grocery Store Over A.pl Name</h1>


    http://www.pcmag.com/article2/0,2817,2409669,00.asp
    Yeah because Apple's the only company that ever sues. :rolleyes:

    Samsung seeks a ban on sales of Ericsson products in the US

    LG LOOKS TO BAN SAMSUNG TABLET IN SOUTH KOREA
  • Reply 16 of 137
    philboogie wrote: »
    What's next? Apple suing NYC for the use of their name¿

    I hear they're going to sue orchard farmers and force them to stop calling certain fruits apples. Dictionaries have received legal notices to remove references to the expression "apples and oranges".
  • Reply 17 of 137
    rogifan wrote: »

    Soon, all smartphones and tablets will be banned.
  • Reply 18 of 137


    you can't be that naive

  • Reply 19 of 137
    Why so many trolls on this thread?
  • Reply 20 of 137
    clan wrote: »
    Why so many trolls on this thread?

    Cuz ain't shit goin on in Android world yo
Sign In or Register to comment.