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Samsung Found Guilty of Abusing FRAND Patents Against Apple

By Alex Wong - on 19 May 2014, 11:13am

Samsung Found Guilty of Abusing FRAND Patents Against Apple

Image Source: AppleInsider

Apple has made legal progress in its battle against Samsung in Japan. Recently, a Tokyo District Court ruled that Samsung had indeed illegally abused its Standard Essential Patents (SEP) to demand a sales ban and excessive royalties against the iPhone maker. According to reports, Samsung was using its patents related to the 3GPP mobile standard to obtain a large amount of royalty from Apple. In addition to this, there was also an injunction against the sales of the iPhone 4. 

It has been found that Samsung has abused the anticompetitive patent abuse in three ways: Firstly, Samsung did not honor the Japanese Civil Code to negotiate with licensees in good faith. Secondly, the court said that Samsung had declared its E-Bit patent to be essential to practicing the 3GPP mobile standard, but the company then attempted to win a preliminary sales injunction against Apple with that patent. This is wrong because courts across the world have deemed that sales bans are an inappropriate remedy in SEP cases where the two parties are merely arguing over a FRAND license.  

Finally, the court determined that Samsung did not disclose its E-bit patent to the European Telecommunications Standards Institute(ETSI) body until two years, after the initial filing, a move that indicates a strong likelihood that Samsung was merely stalling for time. 

Source: AppleInsider