White House declines overturn Samsung product ban in Apple patent case

Updated on

The White House administration declined to remove the ban on Samsung Electronics Co., Ltd. (LON:BC94) (KRX:005930) products, although just this past summer, President Obama halted the injunction from the International Trade Commission that would prohibit sales of the iPhone 4.

White House declines overturn Samsung product ban in Apple patent case

Samsung products ban

Michael Froman, trade representative for the United States, stated, “After carefully weighing policy considerations, including the impact on consumers and competition, advice from agencies, and information from interested parties, I have decided to allow [the ban].”

This ban only affects a small number of Samsung Electronics Co., Ltd. (LON:BC94) (KRX:005930) gadgets. Fortunately, the tech giant found a way to work around the patents for the newer models. The Apple Inc. (NASDAQ:AAPL) patents in question involve a head-phone jack sensor and multi-touch input.

Apple and Samsung’s global market

Apple Inc. (NASDAQ:AAPL) and Samsung are the largest tech companies in the $279.9 billion global market. Samsung still holds the title of the world’s largest.  Patent litigations in four different continents are costing both tech giants hundreds of millions in legal fees. There is no “real” winner in this battle.

Froman explained, “The order expressly states that these devices and any other Samsung electronic media devices incorporating the approved design-around technologies are not covered. Thus, I do not believe that concerns with regard to enforcement related to the scope of the order, in this case, provide a policy basis for disapproving it.”

Samsung sales growth

The most significant unit for Samsung Electronics Co., Ltd. (LON:BC94) (KRX:005930) is the mobile unit. It’s predicted the South Korean tech giant will report third-quarter sales increase of twenty-five percent.  Samsung’s operational profits increased to $9.4 billion in the three month period that ended in September. Demand in China, India, and Middle East markets are attributed to Samsung’s success, although the tech giant also makes other products such as washing machines, television sets, and computer chips. The company did not share details on net income or division earnings.

Samsung’s recent loss is not the end for the company, but it is another gain for Apple Inc. (NASDAQ:AAPL).

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