veto

With a U.S. import ban previously issued by the ITC set to lock out certain Samsung devices at midnight last night, Bloomberg reports that the company has failed to obtain a veto from President Barack Obama:

The Korean company had argued that the ban should be overturned on public policy grounds, especially since a similar order it won against Apple was vetoed by the administration in August. Samsung can now seek a delay in the ban from a U.S. appeals court that will consider the entire case on legal grounds.

“After carefully weighing policy considerations, including the impact on consumers and competition, advice from agencies, and information from interested parties, I have decided to allow” the import ban to proceed, Obama’s designee, U.S. Trade Representative Michael Froman, said in a statement today.

In August, the US International Trade Commission ruled in favor of Apple and issued a sales ban on certain infringing Samsung devices in a long-running case that stemmed from a countersuit originally filed by Apple back in 2011. The news came shortly after the Obama administration’s decision to veto an ITC import ban on certain iPhone and iPad models that Samsung won in a separate case. Like Apple, Samsung was going to attempt to get a veto on the decision by the US President, the only person with the power to overturn ITC import bans. 
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Photo: tractoroutdoor.com

The WSJ reports that more than a billion dollars were wiped off Samsung’s market value today following President Obama’s veto of the decision to ban the import of iPhone 4 and 3G iPad 2 devices into the USA. The fall represented 0.9 percent of the company’s market cap.

While a Presidential veto over-rules the original ITC ruling, the Financial Times reports that Samsung is appealing the ITC decision on the grounds that it only upheld one of the four patents it believes Apple has infringed. The appeal is expected to be held in Q1 2014. Were Apple to lose then, however, the impact would be significantly lower, as Apple is almost certain to have launched new iPhones and iPads by then, with the iPhone 4 and iPad 2 likely removed from Apple’s retail and online stores and seeing only residual sales elsewhere … 
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