In a previous article, we mentioned that the International Trade Commission (ITC) banned the importation of older model Apple products. We also mentioned that President Obama can veto this decision; in fact, the President did just that earlier this month.
The investigation by the ITC began in July of last year based on a June 2011 complaint filed by Samsung against Apple. This past June, the ITC issued a limited exclusion order on specific Apple products as well as a cease and desist order against Apple. Under Section 337 of the Tariff Act of 1930, the section that Apple violated, the President is required to engage in a policy evaluation of the ITC’s determinations regarding exclusion and cease and desist orders. On August 3, 2013, the U.S. trade representative Michael Froman announced the presidential veto based on the President’s evaluation. The letter to the Chairman of the ITC regarding President Obama’s disapproval can be seen here.
The letter discusses how the Obama Administration is committed to promoting innovation and economic progress especially with regard to the policy statement issued by the Department of Justice and the USPTO regarding remedies for standards-essential patents (SEPs) subject to voluntary fair, reasonable, and non-discriminatory (FRAND) commitments (statement here). The letter goes on to discuss how licensing SEPs on FRAND terms is important to this policy. The decision to veto the ITC orders was based on the considerations of various policies involved as they relate to the effect on competition in the United States. The letter ends by stating how future ITC cases involving standard essential patents should contain a thorough examination of the ITC’s own initiative regarding public interest issues and seek proactively to have a comprehensive factual record in the proceedings.
President Obama’s veto is the first of its kind since 1987.
For more information, please visit the following links:
President Obama vetoes U.S. International Trade Commission exclusion order of Apple products
Obama Administration Vetoes Ban on Sale of Some Apple iPhones, iPads