US begins probe over claims against Samsung

By Baek Byung-yeul

Samsung Electronics and Motorola are being investigated by the U.S. International Trade Commission (USITC) over allegations that mobile devices manufactured by the two companies infringed on network patents held by Texas-based Evolved Wireless.

In a statement released March 1 (local time), the USITC said it “has voted to institute an investigation of certain LTE-compliant cellular communication devices. The products at issue in the investigation are described in the commission's notice of investigation.”

The USITC said Evolved Wireless filed a complaint Feb. 1 that “alleges violations of section 337 of the Tariff Act of 1930 in the importation into the United States and sale of certain LTE-compliant cellular communication devices that infringe on patents asserted by the complainant.”

An industry official said Evolved Wireless previously filed a patent infringement suit against Apple, Samsung, Microsoft and other firms for unlawful use of its LTE technology years ago, and this year's case would also appear to be a profit-seeking activity.

Evolved Wireless is known as a non-practicing entity (NPE), which refers to a company or a person who holds a patent or patent rights. However, instead of manufacturing or exploiting the patented invention, the NPE generates profits by negotiating licensed use of it.

Under Section 337, the commission investigates allegations of unfair trade practices involving the infringement of patents. By instituting the investigation, the USITC has not yet made any decision on the case.

The commission's chief will assign the case to one of the organization's administrative law judges who will make an initial determination as to whether there has been a violation of Section 337. A final determination is made within 45 days of the investigation being initiated.

Often called 4G LTE, LTE, or long-term evolution, is a standard for wireless broadband communication for mobile devices. The commission said the scope of the investigation includes “LTE-compliant cellular phones, tablets, and smartwatches.”

Regarding the issue, a Samsung Electronics official said “the company doesn't comment on ongoing investigations.”

The USITC is also looking into a complaint of patent infringement filed by Ericsson against Samsung. The investigation was launched after the Swedish telecommunications equipment giant filed a complaint with the commission in January, claiming that Samsung illegally used its patented wireless communication technology.