The U.S. Department of Justice drops its investigation of Samsung

Florian Mueller, author of the Foss Patents blog, wrote in his blog post titled “Samsung to U.S. appeals court: Presidential veto not broad enough to protect Apple once more” about the ongoing injunction suits that Samsung has been filing against Apple in the United States, and the Department of Justice’s recent decision to drop its investigation of Samsung. He asserts that the U.S. Department of Justice (DoJ) has been too lenient with Samsung, based on the response of European courts to Samsung’s suits. Mueller also feels that the DoJ’s leniency towards Samsung has been guided by foreign policy decisions, rather than a straightforward application of the law.

The impetus for Meuller’s discussion of this topic is the DoJ’s closing of its investigation of Samsung’s use of FRAND-pledged standard essential patents, or SEPs, against Apple two weeks ago, in early February 2014. Because of the Obama administration’s veto of an import ban that Samsung had won against Apple last year, the Antitrust Division had determined that “no further action [against Samsung] was required at this time.”

Mueller highlights Samsung’s patent litigation strategy in Europe, and compares it with their American strategy. In Europe, Samsung had dropped its SEP-based injunction requests against Apple, in order to settle with the European Commission and avoid or minimize fines. Mueller states that the U.S. DoJ should have expected Samsung to similarly withdraw its requests for for injunctive relief against Apple regarding US SEPs, and only then be willing to close its investigation of Samsung.

Overall, Mueller believes that Samsung’s legal strategy is to demonstrate that it can win an import ban on remand, should the appeal succeed on liability. He believes that the DoJ shouldn’t have closed its investiation of Samsung without the latter withdrawing its appeal, as it had in Europe.

My take on Mueller’s analysis is that it is valid, but does not discuss the other side of the equation; Apple’s ongoing suits against Samsung. Discussion of Apple’s suits against Samsung would have provided a broader context for the DoJ’s decision, as well as framed Samsung’s strategy in a more well-balanced manner.

I further discuss my thoughts on this topic at the following link:
https://www.youtube.com/watch?v=URHjGyuHRVE