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Europe antitrust authorities investigating Samsung’s patent claims against Apple

By | November 4, 2011, 10:55am PDT

Summary: Amid continuing patent clashes between Apple and Samsung, European regulators are investigating whether antitrust law has been broken.

European regulators are investigating whether Samsung has breached EU antitrust laws amid an ongoing global patent dispute, the European Commission confirmed today.

“The (European) Commission has indeed sent requests for information to Apple and Samsung concerning the enforcement of standards-essential patents in the mobile telephony sector,” it said in a statement.

Keen to stress that requests for such information are “standard procedure”, Apple’s filings suggest a deeper investigation into Samsung’s patent claims.


(Image source: Flickr, CC)

In retaliation for Apple’s assault, Samsung’s counterclaims are based upon patents essential to UMTS, a crucial technology enabling 3G cellular transmissions across mobile networks. These patents were licensed under “Fair, Reasonable and Non-Discriminatory” (FRAND) terms, which Apple argues is bad for business and a breach of Samsung’s pledge.

The Commission believes this is something worth investigating. As discovered by FOSS Patents author Florian Mueller, the filing said:

“Samsung’s litigation campaign and other conduct related to its declared-essential patents is so egregious that the European Commission recently has opened an investigation to determine whether Samsung’s behaviour violates EU competition laws.”

Samsung told a Dutch publication that it is co-operating fully with the authorities.

If the Commission finds that Samsung has broken antitrust law, it could result in Samsung being forced to drop its legal cases against Apple in Europe, which could then in turn trickle down to remaining, ongoing action in other non-EU jurisdiction.

The Commission can fine a company up to 10 percent of its global turnover, if European rules have been violated, reports Reuters.

Apple has argued that Samsung’s Galaxy smartphones and tablets infringed Apple’s design patents pertaining to its iPhone and iPad devices. Samsung, however, has returned fire by bringing its own patents infringement claims against the Cupertino-based giant, in a number of European courts.

Samsung’s Galaxy tablets have been banned from sale in a number of countries, notably Germany and Australia.

Yet, within days of the iPhone 4S launch, Samsung sought a sales ban of the smartphone in France and Italy, claiming Apple had infringed its patents in the device, adding fuel to the ongoing patent fire. A fortnight later, the Korean smartphone giant had filed in two further countries, Japan and Australia.

While the suits continue, the iPhone 4S remains as Apple’s fastest selling product to date.

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Zack Whittaker, a criminologist who studied at the University of Kent, Canterbury, is a journalist, writer and broadcaster.

Disclosure

Zack Whittaker

I worked briefly with Microsoft UK in 2006 but no longer have any connection with the company. Regardless, I remain impartial and unbiased in my views.

I don't hold any stock or shares, investments or industrial secrets in any company, but have signed confidentiality agreements with a number of UK and U.S. organisations, whose names I am not at liberty to disclose.

I was involved with Kent Union, the University of Kent's student union, undertaking voluntary, non-salaried, elected positions between early 2009 and mid-2010.

No other company, body, government department, non-governmental organisation or third sector organisation employs me or pays me a salary in any capacity whatsoever.

As a freelance journalist, whenever expenses are given and taken by a company that is not CBS Interactive, these will be disclosed in each relevant post to ensure transparency.

I currently work with a UK law enforcement unit. Details of which are restricted, but this is an entirely separate position which bears no connection to other work.

(Updated: 23rd October 2011)

Biography

Zack Whittaker

Zack Whittaker, criminologist who studied at the University of Kent, UK, is a journalist, writer and broadcaster.

After studying criminology at university, though still in his early-20's, he has already had a series unconventional work and voluntary positions. He has worked with researchers studying neurological illnesses like Tourette's syndrome (which he suffers from), has given lectures on the nature of disabilities in the public community, and occasionally ends up speaking on television and radio discussing the events of the day.

He first had academic work published at the age of 22, then still an undergraduate, and has been cited by a wide range of publications: from the Huffington Post, Business Insider, AllThingsDigital, The Atlantic Wire and CBS News.

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RE: Europe antitrust authorities investigating Samsung's patent claims against Apple
another.rob 2nd Feb
So, Apple really annoys pretty much EVERY phone/tablet manufacturer with it's overly aggressive chasing of patents and basically acting like a spoilt brat, so when others then start hitting Apple in the nasty ways that Apple has hit them, then they start getting investigated. I blame Apple for creating this exceptionally hostile patent-chasing culture which is potentially proving to be Samsung's undoing by being a bit too Apple-like in the patents they've been chasing (and yes, I know Apple hasn't chased anyone over the patent content that Samsung is getting in trouble for, but considering the range of lawsuits they're engaging all their competitors in it's pretty much the same thing).
0 Votes
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Samsung has a monopoly?
toddybottom 4th Nov
This is interesting to me because we are constantly told by Apple fanbois that there can be no antitrust without a monopoly.

Yet here we have Samsung being investigated for antitrust. What is Samsung's monopoly?
@toddybottom: ... monopoly, since at no sector Apple is found abusing its monopoly position, which would be illegal, not monopoly itself.

Samsungs' patents were included in the UMTS standard only because the company signed papers that they will offer the patents to any party on FRAND terms. And now they are suspected.
@toddybottom
Samsung has a monopoly on that patent. Even that would be fine if it wasn't considered essential.
Anti-trust is not equal to monopoly. Samsung was trying to get particular competitors banned from ability to use 3G data on phones while letting others license the technology. The patents were part of a large agreement defining 3G standards that were adopted and published by the industry as part of licensing the airwaves. Samsung decided to use their patents years after Apple started selling the iPhones, and retroactively enforce on of these basic patents covered by the standard. Meanwhile, Apple was using Broadcom/Qualcom etc chips with 3G functionality that already has licenses for the technology under the FRAND standard. Seems very anti-competitive from Samsung...
0 Votes
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You didn't answer the question
toddybottom 4th Nov
@teetee1970
"Seems very anti-competitive from Samsung... "

Where is Samsung's monopoly? Like I said, whenever Apple's anti-competitive actions are brought up, the immediate defense is that Apple can't be anti-competitive because they don't have a monopoly.

So where is Samsung's monopoly?
0 Votes
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Because if not, then you're got some serious issues. That and you probably have as much of an idea how the EC functions as does a kangaroo understand particle physics.
@toddybottom: ... there is almost no way to make a phone that could work on cell networks without UMTS standard. So this is monopoly, and abuse of monopoly position is crime that is punished with fines valued up to 10% of turnover. (However, Samsung did not yet caused any harm, so they will not be really punished. However, their attempts to abuse their position will be stopped.)
@Derss There is a way... It's called EDGE and 2G... Point here, Samsung obeys FRAND and offered to Apple to sell it like all customers. Apple refused to buy it, because Apple claims they use parts like Intel etc. in their phones/tablets so they don't need to buy it.
@teetee1970 Samsung does not try to ban Apple, it wants Apple to buy patents. They do want to sell it and offered Apple about it. Apple refuses to buy them because Apple claims these patents are part of "parts they use in their devices" ... That's all the fuss
@AmediaN

The chip manufacturers pay the royalties to Samsung. Samsung is asking Apple to pay additional royalties on the use of those same chips.
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You are a compete moron
wackoae 5th Nov
@AmediaN That is the only explanation why you can't understand information.

Just have a simple look at ALL the related articles. They all show that Apple is licensing the patents when they purchase the chips for LEGAL manufacturers (same way everybody else). What Samsung is doing is trying to charge a second more expensive license for what they already got paid for.
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Might work
Robert Hahn 5th Nov
That might work in Europe, I dunno. The issue has been litigated in the US, and settled by the Supreme Court. In the US, Apple could not be made to pay licensing fees for technology that they purchased from someone who had bought a license that allowed them to sublicense.

The same issue might vary from country to country in the EU.
@msalzberg: As far as I know, it's SEPARATE patents for the hardware itself and the full product with software and integration of components.
(BTW, I think that ALL these patent suits should be tossed out.)
@teetee1970

Apple has yet to pay Samsung the licensing fees.

All other manufacturers has paid Samsung for the use of those 3G patents.
Ahhh, slightly off topic but, I had a chance to have a play with a Samsung tab the other day. Yes it is rectangular like the iPad but how could anyone miss the 'SAMSUNG' on the front or the fact that it does not have a front mounted 'home' button.
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Shaken, not stirred
Robert Hahn 5th Nov
MI6 has authorized its agents to shoot people who try to sell that "Apple patented the rectangle" nonsense.
Eye for eye, tooth for tooth. I'm with Samsung on this one. Apple tried to mislead court stretching device pictures to match their size with iPad etc. also most likely bribed in Germany, since Judge was using iPhone 4 telling this misleading is "just a mistake"
Apple opened a can of legal worms it can't win. The latest news is that two German courts say Apple infringed on two Motorola patents. Most of Apple products exists on the innovation of others. And we are not talking about how rectangular a device is or that it has tapered edges. We are talking real innovation that makes things actually work.
hh http://www.phonearena.com/news/Two-German-courts-say-Apple-infringed-on-two-Motorola-patents_id23521
So basically Apple patents the rectangle and the EU is OK with it, but Samsung patents an actual wireless communications capability and the EU is skeptical because Apple whined?

Hmm...
@PollyProteus Polly: No offense, but I think you might possibly misunderstand the issue here, (or maybe I am). Samsung, whom is quite po'd with Apple, is trying to double dip, and get Apple to pay extra money.

Samsung is already receiving money or royalties from the chip manufactures for the use of their tech. Then they're trying to force Apple, and only Apple to pay additional fees. This is of course my opinion from the articles I've been reading on the net....
Thanks,
Have a great day!!
@Rapid Rec
the way I understand it is that there are 2 sets of patents for the UMTS 3G data system, the first being for the chips to utilize the technology, the second being for software/devices to use the technology in the chips (you have to have code to tell the software how to use the hardware). Samsung is blowing smoke over Apple's refusal to pay for the software/device's ability to utilize the chips. All other vendors have already paid for this privilege.

as for fanaticism - I don't own a single Samsung or Apple product, but I hope Samsung wins, I'm tired of Apple thinking that they have to make sure no one else can compete with them by suing everyone who makes a competing product. Rectangle or not.

Since we all know the US patent system won't get abolished, I think they should make one small change. Mandate that all patents MUST be made available for license to ANYONE who wants to license it at a reasonable cost, based on the quantity of units/devices that will be licensed. Possibly something similar to the medical drug system, where the inventor gets a monopoly on the idea for x months, then it is open for use by anyone, only in this case it would still require licensing and royalties when used.
all this fuss over a form factor that was invented decades ago... around 1980-1990... no backlight, monochrome display, built-in office suite... but still a tablet.. ?10 hour battery life... my brother had one
So, Apple really annoys pretty much EVERY phone/tablet manufacturer with it's overly aggressive chasing of patents and basically acting like a spoilt brat, so when others then start hitting Apple in the nasty ways that Apple has hit them, then they start getting investigated. I blame Apple for creating this exceptionally hostile patent-chasing culture which is potentially proving to be Samsung's undoing by being a bit too Apple-like in the patents they've been chasing (and yes, I know Apple hasn't chased anyone over the patent content that Samsung is getting in trouble for, but considering the range of lawsuits they're engaging all their competitors in it's pretty much the same thing).

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