Obama Supports Import Ban on Samsung Won by Apple Inc. (NASDAQ:AAPL)

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Apple Inc. (NASDAQ:AAPL)
Apple Inc. (NASDAQ:AAPL)

As a result of a clash of patent-infringement between Apple Inc. (NASDAQ:AAPL) and Samsung, President Obama supports the ban on Samsung tablets and smartphone import into the United States. Michael Froman, a representative of the U.S. Trade said that this ban was imposed after carefully reviewing the impact on competition and users, information on interested parties, policy considerations and advice from different agencies.

Global market for smartphones is worth $279.9 billion at the moment; with Samsung as the leader in the market both Samsung and Apple enjoy the major market share. Both these companies have invested millions upon millions for obtaining legal fees in their patent case in court with the objective to put a limit to the sales of the other in the United States.

Forcing Samsung to alter its design is Apple’s major victory. Apple claimed in court that Samsun made no design changes in its newer smartphone models despite changing the models’ names. This defeat of Samsung necessarily involves basic function instead of features of cellular phones.

The import ban has been put on a few selected Samsung products. According to ITC two new models by Samsung (South Korea) Suwon had taken over Apple’s two patents that include headphone jacks’ sensor and multitouch feature. Foreman stated that the model released by the Korean Samsung infringe on Apple patents and have workarounds for the approved designs for these features.

Samsung spokesperson, Adam Yates stated that Samsung is extremely disappointed in the decision; however Foster, Murphy, Altman & Nickel in Washington’s lawyer Jim Altman believes that this ban will have almost no impact on Samsung’s position in the US.

Only a few of the older models by Samsung infringe this patent, but the newer models that include Galaxy s4 don’t. Kristin Huguet, Apple’s spokesperson refrained from commenting on this situation.
The Computer & Communications Industry Association President, Edward Black says that this decision is the result of political pressure and preferences and favors American companies over Korean, which is unfair. The trade representative believes that these companies, Apple and Samsung area major contributor to the US economy.

A median estimate by six analysts that was reviewed by Bloomberg News states that mobile unit of Samsung is a core unit. Samsung sales for the third quarter are expected to show a rise by 25%. The operating profit of the company went up to 10.1 trillion or $9.4 billion in the third quarter that ended in September. Samsung did not offer any information on its net earnings.

 

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