Smart Phones

In December 2012, a statement of objection has been delivered to Samsung’s leadership by the European Commission. According to the statement, the Samsung is exploiting its standard essential patents to prevent Apple for using the same. The next step of European Commission is to grant a written notice to Samsung. The investigation of Samsung by EC began when this Korean company filed many lawsuits and injunctions against Apple in European Commission. At present Samsung has dropped all of the injunction requests in European countries.Now the next step of Samsung is to respond formally to the allegations by European Commission. To defend themselves, the company can ask for a trial in front of the regulators. When the commission makes a judgement, the Samsung might face a fine of up to 10% of annual sales. The patent is about the 3G UMTS wireless communication. The company decided to license it to their competitors in Europe.

According to a statement made to Reuters by Joaquin Almunia the Competition Commissioner, the keystone of single market is the intellectual property rights but these rights should not be abused as they are necessary to implement industry standards which get a great benefit for consumers as well as businesses.

All of this began when European Union started its investigation in January 2012. EU gave the reason for their investigation that it was started after Samsung’s pursuit of injunctive relief in several Member State Courts. The pursuit was against the competitors of Samsung regarding the infringement of its patent rights which are necessary for implementing the European mobile telephony standards. Few weeks back, Samsung dropped its injunctive relief requests. this will not stop the formal charges but this might help Samsung in lessening or getting rid of the potential fine that Samsung might have to pay after the judgment of this trial.

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