Rival technology firms Apple and Samsung have been involved in a high-stakes fight over patent rights for the better part of two years. The legal battle revolves around the technology used in their smartphones, which Apple claims has been stolen from the California-based firm by Samsung for use in its own line of smartphones.
The two companies make up almost half of the smartphone market, with their ultra-popular iPhone and Galaxy products selling in the millions. A recent ruling blocking older models of Apple’s smartphone and best-selling tablet from being imported by US-based retailers has been blocked, in an unexpected legal twist.
The Obama administration is involved in lifting the import block, which stopped US-based companies and consumers from importing the iPhone 4 and iPad 2 due to the ongoing patent dispute. Despite being marked as a victory for Samsung by many in the legal community, the ban had not yet come into place before it was blocked.
While Apple’s case revolves around large-scale patent infringement by Samsung, the ban on iPhone and iPad imports was based on a similar complaint by Samsung that claimed Apple violated one of its own patents. The Obama administration claimed that the government ‘does not favour import bans’ on the basis of patent type.
The case, which has been headline news in the technology industry for years, is one of several highlighting the amount of disruption caused by patents to the technology industry. US Trade Representative Michael Froman, who overruled the ban on Apple product imports, said patent owners possess to much leverage over competitors.’
As the two firms are leaders in smartphones, with Samsung leading in sales figures and Apple the most profitable in the industry, the outcome of their patent dispute is important for others in the industry.