Potential Sales Ban on Apple iPhones with BOE Displays in the US
Apple’s iPhones equipped with BOE displays may be facing a significant sales restriction in the United States, attributed to ongoing patent infringement issues between Samsung Display and BOE, the Chinese display manufacturer.
Preliminary Ruling by the US International Trade Commission
Recent reports from Korean media indicate that a preliminary decision by the US International Trade Commission (ITC) has found BOE to be in violation of Samsung Display’s trade secrets, particularly concerning OLED panel technology. If this finding holds, it could lead to an import ban that directly impacts iPhones utilizing BOE’s display offerings. The ITC has ruled that BOE, along with its seven subsidiaries, breached Section 337 of the Tariff Act.
Background of the Dispute
The legal contention began in 2023 when Samsung Display initiated litigation against BOE. Samsung’s allegations focused on the unauthorized use of its trade secrets in the manufacturing of OLED panels. Additionally, Samsung filed a similar claim in the Eastern District of Texas, seeking compensation for damages and loss of profits.
Next Steps in the Legal Process
The ITC’s preliminary ruling is just the beginning, with a final decision expected in November. Following this, the US President will have a two-month window to either approve or veto the ruling. Historically, preliminary rulings are seldom overturned in the final phase.
Potential Outcomes of the Ruling
The ITC is poised to issue two potential orders: a limited exclusion order and a cease and desist order. The limited exclusion order would permit Apple to continue selling iPhones with BOE displays that were imported prior to the ruling’s announcement. However, the import of any new iPhones found to be infringing could be halted entirely.
On the other hand, a cease and desist order would complicate Apple’s situation, impacting not only its existing inventory but also any future production or sales of the infringing models within the US market. Such a restriction could significantly affect Apple’s revenue stream.
Samsung, LG, and BOE: Key Players in Display Manufacturing
Leading the market in iPhone displays are Samsung Display, LG, and BOE. Typically, BOE supplies displays for non-Pro iPhone models, including this year’s iPhone 16e. Notably, there are reports from industry insider Jukanlosreve suggesting that the iPhone 17 Pro versions set for exclusive release in China may opt for BOE displays instead of those from Samsung or LG.
As this situation develops, the ramifications of the ITC’s decisions could have lasting implications for both Apple and BOE, altering the dynamics of supply chains and competitive practices within the tech industry.
Leave a Reply