Samsung Electronics faces USITC investigation

Samsung Electronics' image sensors / Courtesy of Samsung Electronics

By Baek Byung-yeul

Samsung Electronics is facing the U.S. International Trade Commission's (USITC) investigation for allegedly infringing on patented technologies related to image sensor technology held by the U.S. firm Pictos Technologies.

The USITC said on Nov. 25 that it has voted to launch an investigation of certain digital imaging devices and products of Samsung in violation of Section 337 of the Tariff Act of 1930, which is aimed at regulating unfair trade practices involving the infringement of patents.

The trade commission identified the subjects of the investigation as Samsung Electronics and its two U.S. affiliates ― Samsung Electronics America and Samsung Semiconductor.

The investigation was launched after California-based company Pictos Technologies filed a complaint with the USITC claiming that cameras on Samsung devices infringed on patents and used technology that was stolen from it.

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By instituting this investigation, the USITC has not yet made any decision on the case. Its chief administrative law judge will assign the case to one of the organization's administrative law judges who will make an initial determination as to whether there is a violation of Section 337. The final determination of the investigation will be made within 45 days after the start of the investigation.

Regarding the investigation, a representative of Samsung said "we are unable to comment on issues that are under investigation."

The image sensor business has become increasingly important as more devices feature more cameras. With the development of technology, the demand for sensors are soaring as they are gradually used in not only smart devices such as smartphones and tablet PCs but also vehicles and internet of things (IoT) devices.

As of the first half of this year, Samsung has the second-largest market share for smartphone image sensors with 32 percent, following Sony of Japan with 44 percent, according to data by Strategy Analytics. Given Samsung had a 29 percent share in the same period in 2019 while Sony had a 50.1 percent, Samsung is rapidly chasing the leader.

Not only its image sensor business, but also Samsung's core items have been a target of patent lawsuits.

The company's organic light-emitting diode (OLED) technology, which is used in making display panels, was entangled in a USITC's investigation in October after Ireland-based OLED intellectual property company Solas OLED filed a complaint for alleged violation of section 337.

However, the trade commission recently decided to terminate the investigation after Solas OLED withdrew the complaint on Nov. 6.

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