President Obama vetoes iPhone sales ban

Samsung's claims that Apple is violating its intellectual property nearly got some popular products banned from entering the U.S. Luckily for Apple fans, the White House stepped in over the weekend.

President Obama blocked an International Trade Commission (ITC) decision that would have prevented the iPhone 4 and some iPads from being imported into the U.S., according to a report by The Verge.

Samsung won the ban from the ITC—a quasi-judicial federal agency that advises the President and Congress on trade policy—back in June, after accusing Apple of infringing on its cellular data patent in the iPhone 4, 3GS and 3G, as well as the iPad and iPad 2 with 3G capability. At the time, Apple argued that Samsung had agreed to license this patent on FRAND terms, which stands for "fair, reasonable and non-discriminatory." 

However, the Justice Department and the Federal Trade Commission have been taking a closer look into import bans as of late, suspecting that they are becoming tools of patent trolls. Indeed, President Obama has in the past indicated his willingness to crack down on patent trolls, and has called on Congress to do the same.

According to the veto letter, which was written by Trade Representative Michael Froman, the veto resulted from a fear that Samsung was "gaining undue leverage" over its competitors. The letter went on to argue that companies who hold "standards-essential patents" must license them fairly to competitors. 

Technology companies that deal with similar products often engage in disputes over intellectual property. A Phoenix business attorney can help achieve a solution.

Categorised in: Business Law

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