Apple Korea under investigation over patent infringement

By Kang Seung-woo

The Korea Trade Commission (KTC) has started an investigation into Apple Korea over an alleged patent infringement of a state-run research institute's chip technology.

According to the commission under the Ministry of Trade, Industry and Energy, Friday, KAIST Intellectual Property (KIP) demanded this month that the government investigate the Korean unit of the global smartphone maker. KIP is the intellectual property arm of the Korea Advanced Institute of Science and Technology (KAIST).

KIP claimed that Apple Korea used KAIST's semiconductor manufacturing process technology known as "fin field effect transistors" without permission for its smartphones and tablet PCs.

The technology at issue is a three-dimensional transistor that can increase the degree of semiconductor integration on a chip to boost performance while reducing energy consumption. It is a basic element of application processing that plays a key role in smartphone and tablet PC manufacturing.

Seoul National University professor Lee Jong-ho first developed it in partnership with KAIST.

The KIP said in its statement to the KTC that Apple's smartphones, including iPhone X, and iPads that are imported from China and Hong Kong and sold in Korea violate the patent rights.

In response, the KTC reviewed whether the request was enough to launch the investigation.

Along with the iPhone X, the iPhone 6S, 6S Plus, SE, 7, 7 Plus, 8 and 8 Plus as well as three types of iPads will be subject to the KTC investigation.

It usually takes six to 10 months for the KTC to complete an investigation into an alleged unfair trade practice.

If it find a patent infringement occurred, it can issue a corrective order, while fining Apple Korea 30 percent of its annual sales.

Apple Korea has yet to announce a statement on the case.

The KTC investigation may deal another blow to Apple as the company is under investigation for slowing down older iPhones on purpose.

According to Apple, the performance of older iPhones, including the iPhone 6, iPhone 6S, iPhone SE and iPhone 7, is slower when software updates to prevent the phones from turning off suddenly and eventually prolong the lifespan of batteries are downloaded.

However, critics say this action is intended to make users buy new phones.

The KTC was established in 1987 to investigate and remedy domestic industrial injury inflicted by unfair trade practices and rising imports.

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