WSJ · June 2013

Ruling Blocks iPhone Sales

Samsung Electronics Co. won a significant legal victory against Apple Inc. that threatens to halt the sale of some iPhones and iPads in the U.S.

The U.S. International Trade Commission on Tuesday ruled that Apple violated a Samsung patent covering technology used to send information over wireless networks.

Unless vetoed by President Barack Obama or blocked by an appeals court, the ruling would bar the importation of certain iPhones and iPads made to work on AT&T Inc.’s network. Among them are the iPhone 4, the iPhone 3GS, the iPad 3G and the iPad 2 3G.

The latest Apple products, including the iPhone 5 and the fourth-generation of the iPad, were unaffected.

Once close business partners, Samsung and Apple have become increasingly intense rivals, sparring over the market for smartphones around the globe, with much of the momentum accruing to Samsung in recent months.

The rivalry has spilled into the courts, where barrages of competing patent claims have been lobbed in both directions. Last year, Apple won a jury trial and $1 billion in damages against Samsung over iPhone patents. Tuesday’s ruling, which Apple has vowed to take to a federal appeals court, raises the incentives for the two sides to reach a more comprehensive settlement. But so far, both sides offered no hint at a settlement.

 

To read the rest of the story, either contact me directly or read more online at the WSJ: here. (subscription required)

 

(Published June 4, 2013 on A1 of The Wall Street Journal.)