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FTC urges ITC not to ban iPhone, iPad and Xbox
The Federal Trade Commission took on the growing problem of injunctions in a letter addressed to the US International Trade Commission, according to a report by CNET. The letter was meant to dissuade the federal agency from approving import bans in patent and trademark infringement cases that involve industry standards like 3G. The FTC warns such injunctions against products like the iPhone, iPad and Xbox could harm consumers and stifle innovation. The FTC writes, "Hold-up and the threat of hold-up can deter innovation by increasing costs and uncertainty for other industry participants, including those engaged in inventive activity. It can also distort investment and harm consumers by breaking the connection between the value of an invention and its reward -- a connection that is the cornerstone of the patent system." The ITC has been the focus of several high-profile patent infringement cases, including the recent battle between Apple and HTC, which led to the ban of select HTC Android phones. Last month, the HTC One X and the EVO 4G LTE were held temporarily at the border by US Customs, which inspected the phones for patent infringement. A bigger issue brought up in this letter is the use of standards-related patents in litigation. Companies that own patents on standards, like those that govern 3G and 4G wireless communications, are supposed to be license these patents to other companies on fair and reasonable terms (FRAND). Now that competition is heating up, patent owners are reluctant to license their intellectual property and are using them to sue their rivals instead. You can read an excellent analysis of this issue by Florian Mueller of FOSS Patents. He describes in detail how Samsung and Motorola are abusing the principles of FRAND licensing in their litigation with Apple.
FTC tells ITC that bans over standards-based patents aren't kosher, looks warily at Motorola and Samsung
Most of the scrutiny over abuse of standards-based patents has come through European Union investigations of Motorola and Samsung. That attention might come to the US if the Federal Trade Commission has its way. It just sent a letter to the International Trade Commission arguing that companies should be blocked from landing bans if they base their disputes on standards. These kinds of blockades "deter innovation" and spur companies to try for much more of a cash windfall from a patent than it's really worth, the FTC argues. The letter doesn't directly accuse anyone of getting their fingers dirty, but there's little doubt that it's referring to Motorola (now part of Google) and Samsung: their varying ITC disputes against Apple and Microsoft are often based around standards patents for technologies like 3G and H.264 video, which aren't supposed to demand legal action except as a last resort. An angry FTC missive doesn't constitute a formal investigation that would actively worry either Motorola or Samsung, but it certainly fires a warning shot across the bow.
Apple hits HTC with third ITC dispute, One series goes under the gun
Apple chief Tim Cook might have said that he doesn't like lawsuits, but he must have left a loophole open for International Trade Commission disputes. His company quietly filed a third challenge against HTC on June 4th (just now coming to light) that -- surprise -- claims HTC is still violating patents that it supposedly worked hard to avoid. If successful, Apple would slap down 29 devices that include a much more modern set of hardware than the first two disputes, including the One X (and EVO 4G LTE), One S and One V. Apple had success in December with the final results of its first ITC complaint and may simply be rolling the dice to try for more. Whatever throw Apple lands, there's no doubt that HTC and its fans are exasperated at the thought of more launch delays, or worse.
Customs stops delaying HTC One X and EVO 4G LTE devices after 'review'
HTC-branded crates have been trickling through customs for ten days already, following a total clamp-down earlier in May, but it's only now that they're able to pass through without lengthy extra checks. The manufacturer says it has "completed the review process with US Customs" and that it is "confident that we will soon be able to meet the demand for our products." That obviously raises the question as to why the HTC One X and EVO 4G LTE devices were held up in the first place. The ITC had earlier ruled that HTC infringed on an Apple patent about data detection, concerning a handset's ability to recognize and move around personal data, for example between the contact entry and the calendar, and it had given HTC until April to remove that feature. HTC agreed to that, but it appears customs officials initially needed to check every box to ensure that products arriving in the US were of the compliant type. Meanwhile, the LTE part of the EVO 4G is still waiting for its luggage.
Huawei files EU antitrust complaint against InterDigital
Huawei has filed an EU antitrust complaint against InterDigital to end its "abuse" of the allegedly standards-essential patents it controls. The company has urged the commission to examine its demands, which are considered too hefty to come under the protection of FRAND terms. The shoe normally resides on the other foot, with InterDigital previously instigating battles with Nokia, Samsung and ZTE. This time, it looks like the Chinese giant was tired of being pushed around by what it's derisorily called a non-practicing entity -- which we've taken to be a polite euphemism. Update: InterDigital has released a statement, which we've included after the break.
ITC rules against Kodak, in favor of RIM and Apple
This is strike two against Kodak at the US International Trade Commission. CNET is reporting today that administrative Judge Thomas Pender reaffirmed a decision from last year which stated that neither Apple or RIM were infringing Kodak patents. "I hereby reaffirm on remand that no violation of Section 337 of the Tariff Act of 1930, as amended, has been found in the importation into the United States, the sale for importation, or the sale within the United States after importation of certain mobile telephones and wireless communication devices featuring digital cameras, and components thereof, in connection with claim 15 of U.S. Patent No. 6,292,218." The judge noted that Apple and RIM were actually both infringing on a patent held by Kodak, but the claim was invalid because the technology Kodak claims was protected was "obvious". Kodak brought the action in 2010, claiming that both Apple and RIM image preview functions were infringing on Kodak intellectual property. The ruling needs to be approved by the full ITC panel. Kodak filed for Chapter 11 bankruptcy protection in January, and has been active in trying to sell off its patents in hopes of raising some money. Apple fans will note that back in 1994, Apple and Kodak were partners in the production of the first consumer digital camera, the Apple QuickTake 100. Time Magazine noted that the camera was 'the first consumer digital camera' and ranked it among its '100 greatest and most influential gadgets from 1923 to the present'.
ITC says again that Apple and RIM don't violate Kodak patent
Kodak hasn't caught a break lately, and that trend isn't easing up any time soon with a second rejection arriving in its main International Trade Commission (ITC) patent dispute with Apple and RIM. Despite having had its case remanded after a loss last year, Kodak is once more being told that BlackBerrys and iPhones don't violate a patent on previewing photos. The one violation was rendered moot through "obviousness," according to administrative law judge Thomas Pender. It's still an initial ruling, and Kodak is trying to put a positive light on the situation -- it's "pleased" there's still an infringement, even if the patent claim is invalid -- but the patent wars aren't looking good for a photography company that has already had to give up cameras to have a chance of staying afloat. Most of Kodak's hope, then, will be pinned on a second wave of ITC disputes that might stand a better chance of putting at least Apple's feet to the fire.
Customs slowly letting HTC handsets into the US, can't say which ones
Still waiting for your HTC handset to make its way through customs? Ratchet your hopes just a smidge higher, because the company says it's making progress. "Some models have gone through inspection and been released to our carriers customers," the firm stated in an investor statement today. HTC explained that each of the contested models needs to be reviewed by officials before release, and assures customers that it is working with customs to speed along the process. Which devices are making it through? "We don't have the status of each specific device at this time," HTC says, "We remain confident that this issue will be resolved soon." Sure, that's not much to go off of, but we'll take what we can get.
T-Mo delays HTC Amaze 4G online orders due to 'unforeseen issue,' has other recommendations
Hot off the heels of the One X and EVO 4G LTE spending some prolonged time at customs, now another member of HTC's sensational family appears to be feeling the rigorous effects of the ITC. According to a recent email acquired by TmoNews, it looks as if the Magenta carrier is delaying shipments of the HTC Amaze 4G in the US, saying it's facing "an unforeseen issue with receiving the product from the manufacturer," and that it doesn't know when the handset will be up for grabs again. What's also interesting here, however, is T-Mobile going as far as recommending Sammy's Galaxy S Blaze 4G as a substitute -- which, let's face it, can't be good news for HTC. Here's to hoping this all gets sorted out relatively soon. In the meantime, you can check out the aforementioned email in its entirety at the source below.
ITC bans Motorola mobile devices for infringing Microsoft patent (updated: MMI responds)
At the end of last year, an Administrative Law Judge issued an initial ruling that Motorola's mobile devices infringe a bit of Microsoft's IP. Now, the Commission has affirmed that decision and issued an exclusion order to ban Moto's offending devices from importation into the US. In case you weren't aware, the four patent claims at issue generally cover technology for scheduling meetings over email using a mobile device. So, unless Motorola removes the feature, pays for a license or whips up a workaround Microsoft's patent in short order, its inbound RAZRs, Droid 4s, Bionics and other offending handsets will be stuck in customs alongside HTC's One X and EVO 4G LTE -- that is, unless Obama steps in to save the day during the prescribed presidential review period. Microsoft, naturally, is quite pleased with this development and has issued a statement: Microsoft sued Motorola in the ITC only after Motorola chose to refuse Microsoft's efforts to renew a patent license for well over a year. We're pleased the full Commission agreed that Motorola has infringed Microsoft's intellectual property, and we hope that now Motorola will be willing to join the vast majority of Android device makers selling phones in the US by taking a license to our patents. -- David Howard, corporate vice president and deputy general counsel Microsoft We've reached out to Motorola for comment on the matter as well, so stay tuned to see what it has to say. Update: Motorola has issued an understandably somber statement on the ruling: Microsoft started its ITC investigation asserting 9 patents against Motorola Mobility. Although we are disappointed by the Commission's ruling that certain Motorola Mobility products violated one patent, we look forward to reading the full opinion to understand its reasoning. Motorola Mobility will not experience any impact in the near term, as the Commission's ruling is subject to a $0.33/per unit bond during the 60 day Presidential review period. We will explore all options including appeal.
Best Buy expects EVO 4G LTE to land May 23rd, HTC remains cautious
We've received a boatload of tips that folks who have pre-ordered the EVO 4G LTE at Best Buy are now seeing a new release date of May 23rd. Does this mean Sprint's flagship handset is getting close to leaving those dreaded customs halls? Here's HTC's take on the matter: HTC is working closely with U.S. Customs to secure approval for shipments of the HTC One X and HTC EVO 4G LTE. We have not made any announcements about a new launch date and will provide an update on availability as soon as we can do so confidently. While it's quite possible Best Buy knows something we don't, perhaps it's best to take this new release date with a grain of salt. Let us know what you think in the comments and hit the break for a screenshot of an updated pre-order. [Thanks to everyone who sent this in]
HTC handsets delayed at US customs due to ITC injunction over Apple patent
HTC confirmed to The Verge that its One X phone for AT&T and EVO 4G LTE handset for Sprint are being held at the border by customs officials. The shipments are being delayed while the government agency reviews the packages in accordance with an ITC ruling that banned the import of HTC's Android smartphones. In December 2011, the ITC ruled that HTC violated Apple patents, one of which describe a UI feature that lets you tap on an address or phone number as a link and pull down a menu of appropriate actions. HTC said in a statement to the Wall Street Journal that its products are no longer infringing, "We believe we have worked around our design and are now in compliance with the ITC ruling. We are cooperating with the U.S. Customs to speed up the review process." Depending on how long it takes for the review, HTC could face shortages of its One X, which went on sale last month with AT&T. It may also have to delay its May 18 launch of the EVO 4G LTE with Sprint.
HTC One X and EVO 4G LTE delayed at customs due to ITC exclusion order (updated)
We've just received a statement from HTC indicating that two of its flagship devices -- the One X for AT&T and the EVO 4G LTE for Sprint -- have been delayed at customs due to an ITC exclusion order that was handed down last December at Apple's behest. That order was set to go into effect on April 19th, and it looks like HTC's two new stateside superphones are the first to feel Apple's the government's wrath. Here's HTC's take on the matter: The US availability of the HTC One X and HTC EVO 4G LTE has been delayed due to a standard U.S. Customs review of shipments that is required after an ITC exclusion order. We believe we are in compliance with the ruling and HTC is working closely with Customs to secure approval. The HTC One X and HTC EVO 4G LTE have been received enthusiastically by customers and we appreciate their patience as we work to get these products into their hands as soon as possible. We've reached out to HTC for clarification on the delay and to find out if this will affect the launch of the EVO 4G LTE, which is expected to hit the shelves this Friday, May 18th. Stay tuned for updates. Update: While HTC doesn't have any additional information to share at this time, we've also contacted AT&T and Sprint for comment. Let's just hope that the issue can be resolved in a timely manner. Update 2: Sprint and AT&T both declined to comment, but HTC provided the following information about the EVO 4G LTE: We can confirm that the product will not be in stores this Friday. Products for pre-order are on hold. We'll provide a ship date as soon as we're able. HTC will work with Sprint to maintain the promise for pre-order customers so they will be among the first to receive their HTC EVO 4G LTE units when available.
Nokia gets it: launches patent lawsuits against HTC, RIM and Viewsonic
Nokia has just announced that it is commencing patent litigation against HTC, Research in Motion and Viewsonic in the US and Germany. It's claiming that a number of its patents are being infringed and has registered complaints with the ITC and courts in Delaware, Dusseldorf, Munich and Mannheim. Espoo's legal chief Louise Pentland has said that while the company currently licenses its FRAND patents to "more than 40 companies," it had no choice but to lay some courtroom smack-down on the named offenders. It appears that after losing its global market share crown and billion-dollar losses, the company is finally going on the offensive with its deep patent portfolio. You can judge that for yourself when you read the official line after the break. Update: We've received some clarification from Nokia on what exactly is on the docket here. "Four of the patents asserted against Viewsonic in Mannheim are standards essential. The rest against Viewsonic and all against HTC and RIM are implementation patents, not declared essential to any standard and so we have no obligation to grant licenses."
ITC judge: Apple infringes on Motorola mobility patent
In a setback for Apple, the International Trade Commission ruled on Tuesday that Apple infringes on one of Motorola's patents. The patent describes a "method and system for generating a complex pseudonoise sequence for processing a code division multiple access signal." ITC Judge Richard Pender also said Apple did not violate three other patents Motorola included in its original complaint. According to the Wall Street Journal, Motorola was pleased with the result, while Apple was glad it did not infringe on three of the four patents. The Cupertino company noted that the patent it allegedly infringes has already been ruled invalid in a German court. "We believe we will have a very strong case on appeal," said Apple. The full commission will make a ruling on this preliminary judgment in August. It' not a trivial ruling as a decision in favor of Motorola could potentially lead to a ban on the import of iPads and iPhones, says Reuters.
ITC judge finds Apple in violation of Motorola WiFi patent
Motorola scored a win with the US International Trade Commission this week in its on-going patent battle with Apple. The commission's Judge Thomas Pender ruled that Cupertino is in violation of a Motorola WiFi patent -- one of four patents included in a complaint filed by the RAZR maker back in October 2010. Before the ITC actually goes so far as blocking the import of Apple products, however, the ruling is subject to review by the commission. The decision follows another patent win for Motorola, handed down by the ITC yesterday in a dispute with Microsoft. Update: Motorola sent along the following, not surprisingly chipper statement on the matter: We are pleased that the ALJ's initial determination finds Apple to be in violation of Motorola Mobility's intellectual property, and look forward to the full commission's ruling in August. Our commitment to innovation is a primary reason why we are an industry-leader in intellectual property, and our focus continues to be on building on this strong foundation to enhance the user experience.
ITC issues preliminary ruling, finds Microsoft's Xbox 360 infringes on Motorola patents
Potential bad news to start out the week for Microsofties: a judge from the US International Trade Commission has issued a preliminary ruling that finds Microsoft's Xbox 360 infringes on five four of Motorola's patents (and in Microsoft's favor on one). While the decision is by no means final -- which means that the Redmond outfit could ultimately prevail -- a final ruling would force Microsoft's hand to seek proper licenses for the technologies, most of which relate to H.264 video encoding, or have its gaming console banned from US shelves. For now, the lawyers will go back to the lab to refine their arguments and get ready to present them to a full panel of ITC judges later this year. Who wants to set odds on the outcome?
Apple loses ITC ruling against Motorola Mobility in patent infringement case
Florian Mueller over at FOSS Patents noted yesterday that Apple's patent infringement case against Motorola Mobility has been dealt a nearly fatal blow in the courts of the United States International Trade Commission (ITC). The suit alleged that Motorola Mobility was infringing on three Apple patents: one all-important patent for a multipoint touchscreen, an "object-oriented system locator system" patent, and a patent for an "ellipse fitting for multi-touch surfaces." The ITC's preliminary ruling in January found no proof that Moto was infringing on Apple's patents, and Friday's final ruling (PDF) upheld the initial finding. That doesn't make this the end of the road for Apple in the fight against Motorola Mobility. In fact, Mueller notes that the company will most likely appeal the decision in a U.S. Federal Circuit Court, as it is doing with another ITC ruling that found in favor of smartphone manufacturer HTC. There is a much better chance that the Federal Courts will overturn the ITC ruling, but Mueller says that this will take a significant amount of time. Smartphone-related patent infringement claims at the ITC tend to have a very high drop-out rate, so many manufacturers are now taking cases to German courts for "fast and furious" decisions. Mueller notes that the courts in Munich and Mannheim are twice as speedy as the ITC, and patent holders like Apple often win favorable rulings. This explains Apple's reasoning in taking a number of other patent infringement complaints to the German courts for swift rulings that result in injunctions on sales of new products.
Final ITC ruling affirms Motorola Mobility didn't violate Apple's patents
The preliminary decision already determined that, in this case, Motorola Mobility hadn't violated any of Apple's patents with its Droid series, and now a final review has affirmed those initial findings. While this might not be a massive turn up for the books, it does close the doors on at least one big name patent dispute. That said, Apple can appeal to the Federal Circuit, and given that it has done before, it's likely the iPad maker will do so here. But, for now at least, it's cork popping time over in Libertyville.
Apple simplifies its ITC suit against Samsung: drops one patent and several claims from two more
While there's been plenty of legal wrangling between Apple and Samsung in Federal courtrooms lately, it's been awhile since we've had news from the parties' parallel proceedings occurring in the ITC. No longer. Last week, Apple received a favorable outcome when the ITC issued its claim construction order, siding with Apple's interpretations of two patents -- for those who aren't familiar, claim construction is the process by which the judge determines the meaning of specific terms in the claims, and it often has great influence on findings of infringement (or non-infringement). The judge found in favor of Samsung regarding one patent in his claim construction order, however, and now Apple has dropped that patent from the proceedings, along with claims from two of its other patents as well. This latest legal maneuvering by Cupertino is pretty standard fare, as paring down the legal issues is something all courts encourage to make the adjudication process more efficient, and Apple is simply distilling its case down to its strongest arguments. Now that the claim construction's complete, next on the docket is the ITC's evidentiary hearing (read: trial) starting May 31st, and afterwards we'll finally get the ITC's decision. Stay tuned.
