Failed Agreement After Dispute Over Last Year's Mutual Patent Use Contract Extension
In January, Ericsson Filed a Lawsuit Over Telecom Equipment Patents... Samsung Also Counter-Sued

[Image source=Yonhap News]

[Image source=Yonhap News]

View original image

[Image source=Reuters Yonhap News]

[Image source=Reuters Yonhap News]

View original image


[Asia Economy reporters Hyunjin Jeong and Minyoung Cha] The U.S. International Trade Commission (ITC) has launched an investigation into a wireless communication equipment patent infringement case filed by Swedish telecommunications equipment company Ericsson against Samsung Electronics. An investigation into the ITC lawsuit filed by Samsung Electronics against Ericsson is also expected to begin soon. The two companies, which have previously engaged in intense legal battles over patents, are facing off once again.


According to industry sources on the 4th, the ITC decided on the 2nd (local time) after internal discussions to initiate an investigation into the case concerning “certain electronic devices capable of wireless connection and their components” under Section 337 of the U.S. Tariff Act (337-TA-1245). Section 337 of the U.S. Tariff Act regulates unfair practices related to patent and trademark infringements concerning the import and sale of goods in the U.S. The products involved in Ericsson’s complaint include mobile phones, tablet PCs, and smart TVs.


This investigation follows Ericsson’s submission of a complaint to the ITC on the 4th of last month, alleging patent infringement by Samsung Electronics. The two sides had been in dispute over the extension of a mutual patent licensing agreement signed in 2014 but failed to reach an agreement last year. Subsequently, Ericsson filed a complaint with the ITC, claiming that their technology patents registered with the U.S. Patent and Trademark Office (USPTO) were being used without authorization, and submitted additional evidence six times alleging Samsung’s unauthorized use of their technology patents.


Based on this, the ITC has designated five investigation targets, including Samsung Electronics’ headquarters in Korea, its U.S. subsidiary, and three subsidiaries in Vietnam where telecommunications equipment production facilities are located. The ITC administrative law judge will conduct an investigation into the patent infringement claims and issue a preliminary determination. The ITC will also announce the target investigation completion date within 45 days from the start of the investigation.


Patent disputes between Samsung Electronics and Ericsson have occurred multiple times near the end of contract periods in the past. In 2006, the two companies clashed at the ITC over mobile phone patent infringement allegations, but the case was resolved in July 2007 when they signed a mutual patent licensing agreement. In 2012, they again filed lawsuits at the ITC over wireless communication equipment product patent infringement, and after two years of litigation, the conflict ended with a mutual patent licensing agreement in 2014.


This current litigation also began after failing to reach an agreement on whether to extend the 2014 contract. In December last year, Ericsson filed a complaint with the U.S. Eastern District Court of Texas, alleging that Samsung demanded unreasonable contract terms during royalty negotiations, and this year, Ericsson has filed multiple patent infringement lawsuits with both the ITC and the Texas Eastern District Court. In response, Samsung Electronics filed a complaint with the Wuhan Court in China in December last year and filed a counterclaim with the ITC on the 7th of last month. The ITC typically reviews complaints for about a month before deciding whether to initiate an investigation.



A Samsung Electronics official stated, “We have been negotiating patent issues, but recently Ericsson has filed multiple lawsuits claiming infringement of standard essential patents,” adding, “We will explore all possible measures, including legal action, to protect consumers and prevent infringement of Ericsson’s intellectual property (IP).”


This content was produced with the assistance of AI translation services.

© The Asia Business Daily(www.asiae.co.kr). All rights reserved.

Today’s Briefing