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U.S. Trade Panel Investigates Smartphone Makers for Possible Patent Infringement

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Reuters
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May 6, 2016, 7:25 AM ET
APTOPIX Germany IFA Tech Fair
Smartphones of the electronic company Samsung are displayed after a press conference at the company's stand at the IFA 2015 tech fair in Berlin, Germany, Thursday, Sept. 3, 2015. (AP Photo/Michael Sohn)Photograph by Michael Sohn — AP

The U.S. International Trade Commission is launching an investigation into mobile devices made by eight smartphone vendors, including Samsung, over an alleged patent violation, the trade panel said on its website.

The probe follows a complaint filed by Singapore-based Creative Technology and U.S.-based Creative Labs that several handset makers have infringed on their patent, the ITC said in a statement.

The accused vendors are ZTE (ZTCOF), Sony (SNE), Samsung (SSNLF), LG Electronics, Lenovo Group (LNVGY), Motorola Mobility, HTC (HTC) and Blackberry (BBRY).

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“The products at issue in the investigation are portable electronic devices, such as smartphones, with the capability of playing stored media files selected by a user from a hierarchical display,” ITC wrote.

The trade panel said it has not yet made any decision on the merits of the case, and will decide a target date for completing investigation within 45 days after the institution of the investigation.

Creative Technology was not immediately available for comment. HTC said it cannot comment as the case has entered the court process.

Samsung and LG said they are looking into the case and didn’t have any other immediate comment. Sony declined to comment. ZTE, Lenovo and other vendors were not immediately available.

“It’s rare to see so many vendors involved in one patent infringement case,” said research firm Canalys analyst Nicole Peng.

While the share price reaction of most Asia-based companies was muted, Hong Kong-listed shares of ZTE tumbled 11% on Friday to their lowest since July 2013. The Shenzhen-based company faced export restrictions imposed by the U.S. Commerce Department in March for allegedly violating sanctions against Iran.

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