February 10, 2014, 8:10 AM — The Antitrust Division of the U.S. Department of Justice (DOJ) has closed its investigation into attempts by Samsung Electronics to use standards-essential patents (SEPs) to ban Apple products from the U.S. market. A decision in a similar case in the European Union is expected to arrive in April, the European Commission said Monday.
The DOJ was investigating Samsung's efforts to obtain exclusion orders from the U.S. International Trade Commission (ITC) in order to block the import of iPhone and iPad models into the U.S.
The U.S. International Trade Commission (ITC) banned the import of some older iPhone and iPad models in June last year when it decided Apple infringed on a patent Samsung had declared essential to 3G wireless technology.
That decision, however, was vetoed by the Obama administration in August, when it found banning the products would be against U.S. public interest. At the time, the administration also said it was concerned that SEPs could be used to harm competition.
Standards-essential patents are patents that the owner deems essential to implementing technology standards. Under the rules of many industry standards bodies, owners of such patents must agree to license such patents on fair, reasonable and non-discriminatory (FRAND) terms. However, companies often disagree on what constitutes a fair licensing price for such patents.
Because the Obama administration overturned the exclusion order sought by Samsung, the DOJ's Antitrust Division determined that no further action is required at this time, the DOJ said in a statement released on Friday. While this particular investigation is now closed, the DOJ will continue to monitor further developments in this area, it added.
A number of competitive issues arise when holders of SEPs seek to block their competitors from selling products that implement the SEPs, the DOJ said. There are circumstances where an exclusion order as a remedy for infringement of such patents could be appropriate, but in many cases there is a risk that the patent holder could use the threat of an exclusion order to obtain licensing terms that are more onerous than would be justified by the value of the technology itself, it said.
The Antitrust Division has worked closely and consulted frequently with its colleagues at the European Commission, the DOJ said, adding that this cooperation underscores the agencies' common concerns over the potential harm to competition that can result from the anticompetitive use of SEPs.