Samsung Electronics Co. and its subsidiaries are facing legal action from Asus Technology Licensing Inc. for allegedly using standard-essential 4G and 5G telecommunications technology developedAsusteK Computer Inc. in their mobile wireless devices without obtaining the necessary licenses.
According to a complaint filed in the US District Court for the Eastern District of Texas, Asus claimed that Samsung had refused their offer of a global license for the essential advanced wireless technology. The two companies had been in communication for 18 months since January 2022, during which Asus highlighted the ways in which Samsung’s products infringed their patents.
Standard-essential technology refers to wireless communication technologies that have been deemed essential for the operation of a particular standard, such as 4G or 5G. Companies that own patents for standard-essential technology are required to license those patents on fair, reasonable, and non-discriminatory (FRAND) terms to ensure fair competition in the market.
Samsung’s alleged use of the patent-infringing technology without obtaining the necessary licenses could have legal and financial implications for the company. If found guilty of patent infringement, Samsung may be required to pay significant damages and/or enter into licensing agreements with Asus to continue using the technology in question.
The case will be closely watched as it highlights the importance of patent licensing and fair competition in the technology industry. Patent infringement disputes can often result in lengthy legal battles and hefty financial penalties. It remains to be seen how Samsung will respond to the allegations madeAsus and whether a resolution can be reached outside of court.