Brussels, 31/01/2012 (Agence Europe) - On 31 January, the European Commission opened a formal investigation to assess whether South Korea's Samsung Electronics has abusively, and in contravention of a commitment it gave to the European Telecommunications Standards Institute (ETSI), used certain of its standard essential patent rights to distort competition in European mobile device markets, in breach of EU antitrust rules. The proceedings are the next step in the battle between Samsung and Apple of the United States.
In 2011, Samsung sought injunctive relief in various member states' courts against competing mobile device makers based on alleged infringements of certain of its patent rights which it has declared essential to implement European mobile telephony standards. The Commission explains in a press release that it will be investigating “whether Samsung has failed to honour its irrevocable commitment given in 1998 to the European Telecommunications Standards Institute (ETSI) to license any standard essential patents relating to European mobile telephony standards on fair, reasonable and non-discriminatory (FRAND) terms. The Commission will examine whether such behaviour amounts to an abuse of a dominant position prohibited by Article 102 of the Treaty on the Functioning of the EU (TFEU).”
In line with the Commission's guidelines on standardisation agreements, standard setting organisations like ETSI require the owners of patents that are essential for the implementation of a standard to commit to license said patents on FRAND terms. This commitment serves to ensure effective access to the standardised technology. Such commitments were given to ETSI by many patent holders, including Samsung, when the third generation (3G) mobile and wireless telecommunications system standards were adopted in Europe.
The launch of infringement proceedings is the new stage in the battle between Samsung and Apple on patent issues. Samsung is trying to get iPod and iPad banned in Europe, arguing in court that Apple used several of Samsung's own, patented, 3G technologies in its iPod and iPad. Some of the patents, however, were considered in the late 1990s as essential for application of the UMTS standard, and Samsung promised ETSI that it would grant FRAND licences. At a hearing at the Paris Appeals Court in November 2011, an Apple lawyer said that the criteria imposed by Samsung were disproportionate with the type of patent in question (too tough, in other words), and if an essential patent prevents access to the market, then this amounts to abuse of a dominant position.
The Commission will look into the case, but says in a press release: “The opening of proceedings means that the Commission will examine the case as a matter of priority. It does not prejudge the outcome of the investigation.” (OL/transl.fl)