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Apple dealt setback in patent battle with Samsung, faces import ban

Apple is facing a probable import ban in the United States on earlier versions of the iPhone and iPad for allegedly infringing the South Korean handset manufacturer?s patents.

The win went to Samsung in the latest round of a long-running patent infringement battle between Apple and the South Korean handset manufacturer. As a result, Apple will be banned from importing that iPhone 4 and the iPad 2 3G into the U.S. starting in 60 days unless it is able to get the finding overturned on appeal.

"It is a slight setback for Apple in terms of Apples? 'innovation capabilities and expertise' as Apple is found here infringing Samsung?s intellectual property," said Neil Shah, senior analyst for the global wireless practice at Strategy Analytics, Newton, MA. "But Samsung has been very aggressive lately and would like to outshine Apple in every department."

iPhone 4 ban
Apple said it will pursue an appeal.

The finding came from the International Trade Commission, which agreed that Apple violated one of Samsung?s patents involving the use of 3G mobile data links.

The products affected by the ban are older versions of Apple?s popular smartphone and tablet devices. As such, their lack of availability may not hamper sales significantly.

Patent reform
The case has broader implications than the jockeying for a leadership position in the smartphone market and reveals possible shortcomings in how patents are granted and protected.

Apple and Samsung have both actively used legal proceedings as they look to secure top positions in the smartphone and tablet categories.

At issue is that the Patent and Trademark Office, inundated with patent applications, may be granting patents that are not properly documented or are too broad. Some companies with deep pockets are capitalizing on this by bringing infringement lawsuits against competitors knowing that they do not have the resources to fight back and will settle even if the suit is not valid.

President Obama recently addressed the issue of the patent litigation system with a promise of reforms intended to better control the number of patent-related lawsuits and address how the ITC handles such cases.

Fair and reasonable terms
In the Apple, Samsung case, the ITC?s findings are opposed to what the position the FTC and European Commission has taken on fair, reasonable and non-discriminatory terms, with the ITC saying that Samsung?s FRAND terms do not preclude a sales ban.

Apple is seeking a ban on U.S. sales for several Samsung mobile devices.

"This should have a minimal impact on Apple?s current and future iPhone sales, as iPhone 4S is already a decent and cheaper offering which Apple is looking for in US market to attract the still large enough feature phone user base," Mr. Shah said.

Final Take
Chantal Tode is associate editor on Mobile Marketer, New York