ITC delays final decision on Samsung's claim against Apple; seeks public input on iPhone and iPad import ban16
Samsung is seeking a prohibitive 2.4% royalty rate for the patent, which covers the "apparatus and method for encoding/decoding transport format combination indicator in CDMA mobile communication system". It would seem that the ITC is going to rule that Apple did infringe on one of the claims involving the patent. Why else inquire about a possible import ban? The bad news for Samsung though, is that the royalty demand that Samsung has made could really backfire. The ITC is looking at Samsung's SEP licensing history with Apple and it is not favorable for the Korean tech giant. The problem is that Samsung appears to be asking for a high licensing fee in a take-it-or-leave it situation on standards essential patents with the possibility of a sales ban staring Apple in the face if it does't sign off on the deal. In plain English, Samsung is using its leverage to try to force Apple to agree to a ridiculously high royalty fee.
Around the globe, Samsung is seen as abusing the FRAND process. For example, even though in Tokyo District Court Apple was found guilty of infringing on a Samsung patent, the Court found that Sammy had abused the process and failed to negotiate a FRAND patent in good faith. Last year, a Dutch Court ruled against giving Samsung injunctive relief without even looking at its allegations. The decision was made solely on the size of Samsung's royalty demand.