Samsung may have found a way to strike a hefty blow to the United States’ burgeoning right to repair movement. It has approached the International Trade Commission (ITC), requesting an investigation into the importation of third-party OLED displays for independent repair stores. And if the ITC finds in Samsung’s favor it would, in the words of Louis Rossmann (who published the text of the complaint), “fire a kill shot on the entire repair industry.”
Put simply, Samsung’s claim says that it creates AMOLED displays for mobile devices, and that those displays are covered by a number of patents. But factories in China (and elsewhere) are, according to Samsung, churning out similar screens that infringe upon those patents. And that these screens are often imported by third-party repair businesses in the US as a cheaper option than buying authorized parts directly from, in this case, Samsung.
Several businesses are named in Samsung’s complaint, including MobileSentrix, Injured Gadgets and DFW Cellphone & Parts. Many offer wholesale parts and equipment to other repair companies, as well as their own over-the-counter repair service. Samsung wants the ITC to issue orders blocking the importation of these replacement display parts at the border. It has also requested that the named companies be ordered to stop importing, selling or using the products in question.
Now, Samsung is well within its right to protect its intellectual property, even if it’s going about it in a very interesting way. Rather than address the violating factories directly by seeking remedy where those businesses operate, it’s opting instead to block imports into the US. Given the cavalier manner that foreign IP is treated in some parts of the world, it may be easier to go after the customer than it is to attack the suppliers. Samsung’s lawyers did not respond to our requests for comment at the time of publication.
On January 4th, 2023, the ITC announced that it would open an investigation into the import activity under section 337 of the Tariff Act (1930). This gives the ITC broad latitude to look into if the act of importing a product into the US would harm a business operating here. That includes both the infringement of registered patents, as well as the “misappropriation of trade secrets.” And the remedies on offer include the prohibition on further imports as well as the blanket ban on further attempts to acquire this hardware.
The ITC has become a useful tool in corporate America’s arsenal when looking to avoid a drawn-out courtroom battle. Law firm Meyer Brown’s report on section 337 explains that companies use Commission because it offers a “highly accelerated procedure” and “powerful remedies” which are “not available in federal courts.”
If Samsung’s request is successful, it could prevent large volumes of third-party OLED displays from being imported to the US. This would have consequences for the small and medium-sized repair businesses that have grown up around repairing broken smartphone screens. It would also funnel significantly more people toward Samsung’s network of authorized service centers.
Few individuals are willing to speak on the record concerning the present state of Android device repair for fear of souring already-strained supplier relationships. We heard from multiple sources that the perpetually under-fire third-party Apple repair ecosystem is luxurious compared to its Android equivalent. One individual, who asked not to be named, said it was often difficult to source replacement parts for Android handsets, which regularly cost more than those for equivalent Apple …….