Samsung Slams Tessera's Requested Smartphone Ban as 'Unavoidably Detrimental'
Tessera Technologies’ request at the International Trade Commission for an exclusion order against “potentially all” Samsung smartphones and tablets is so overly “broad” that it would “undoubtedly result in massive unmet demand across several, distinct product types,” Samsung said in a letter (login required) filed Thursday in docket 3262 on the public-interest implications of Tessera’s complaint.
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Tessera is seeking a ban on imports of various Samsung mobile devices that allegedly infringe two Tessera patents on “wafer-level” packaged semiconductors, it said in a Tariff Act Section 337 complaint filed Sept. 28 (see 1709290044). The complaint gave “no credible evidence” suggesting “authorized suppliers” could meet consumer demand for the devices that would be import-banned under an ITC exclusion order, Samsung said. Tessera’s complaint thus “failed to address the impact of this potential wide-scale deprivation on the U.S. market,” Samsung said. “That is not surprising, as without alternatives, the exclusion order would be unavoidably detrimental to consumers, businesses, and government entities at all levels.”
Tessera also was wrong to argue that Samsung’s recall of the Note7 last year (see 1610130044) was “broader” in scope than the exclusion order it seeks, Samsung said. The complaint “misrepresents the narrowness of a recall” limited to the newly introduced Note7 model “and the broad relief Tessera requests,” it said. With the Note7 recall, Samsung "specifically offered its customers the option to exchange their recalled smartphone with another Samsung smartphone," it said. That's "a choice consumers are unlikely to have in view of Tessera’s requested remedy, which would extend to existing models and potentially new models of smartphones, as well as tablets, laptops, notebooks, and an amorphous group of ‘products containing same.’ Thus, Samsung’s voluntary recall proves nothing about the public interest implications of the requested remedy.”
Tessera’s requested exclusion order also “undoubtedly raises serious health, safety, and welfare concerns,” said Samsung. “With regard to mobile devices alone, Samsung sells to nearly every national, regional, and local wireless carrier, including those that service rural, low-income, and minority populations.” Smartphones now are 77 percent of all mobile phones in the U.S., it said, citing FCC estimates. Samsung “offers the greatest number of devices across the lower price brackets that low-income households can afford,” with more than 30 percent smartphone market share in the U.S., it said. “Many of these populations rely on Samsung devices as their gateway to online material, employment access, and healthcare services, and excluding them would lead to significant, negative impacts.” Tessera representatives didn’t comment Friday.