Two of Apple's older products could be banned in the U.S pending a review by the International Trade Commission (ITC) and President Barack Obama, Bloomberg Businessweek reported.
The iPhone 4 and iPad 2 3G on the wireless network AT&T in two markets - one in Alaska, one in Texas - have been banned for violating Samsung's patents.
"We believe the ITC's final determination has confirmed Apple's history of free-riding on Samsung's technological innovations," said Adam Yates, a Samsung spokesman. "Our decades of research and development in mobile technologies will continue, and we will continue to offer innovative products to consumers in the United States."
The ITC stated in the notice they posted on their website Tuesday that Apple infringed upon a patent regarding how the smartphone transmitted data. Apple argued Samsung should have licensed the patent since the data transmission method is a standard practice in the industry. Samsung was willing to let Apple use the method, but only for 2.4 percent of the average selling price of the iPhone and iPad, which Apple deemed "unreasonable."
Since handing down the ban, the ITC will now enter into a 60-day ruling review period where they can choose to dismiss the ban if they see fit. The President can also overturn the decision on public-policy grounds if he sees fit. Lyle Vander Schaaf, a patent lawyer with Brinks Hoffer in Washington, thinks an Obama intervention is unlikely.
"Historically, the president does not interfere in these sorts of things," he said. "It shows the commission is a very bold agency that they are willing to take these steps despite the popularity of the Apple products."
Apple won a one-billion-dollar suit (which has since been reduced to $600 million) against Samsung last year for copying the iPhone's aesthetic look and features. This ban will not likely bring Apple to any settlements in pending cases.
"We are disappointed that the commission has overturned an earlier ruling and we plan to appeal," said Kristin Huguet, an Apple spokeswoman. "Today's decision has no impact on the availability of Apple products in the United States."
Apple can still sell all of its products during the 60-day review period, but should the ban hold up, its sales could be hurt by up 11 percent. Customers looking to purchase an iPhone without spending big on the iPhone 5, often resort to the three-year-old iPhone because of its low price.
Park Hyun, an analyst for TongYang securities in Seoul, said this decision could help Samsung remove its "copy-cat" label and hurt Apple's image.
"It seems inevitable that the latest ruling will have a negative impact on Apple," Park said. "Combined with rising branding power in the U.S., the ITC ruling may give Samsung a chance to narrow its market-share gap with Apple in the U.S."
