April 25, 2024

Apple Violates Samsung Patent, U.S. Trade Panel Says

But the ban is unlikely to have an immediate impact on sales of those devices in the United States.

The United States International Trade Commission said on Tuesday that it was issuing a ban for a handful of devices that work on ATT’s network, including the third- and fourth-generation iPhone, and the first-, second- and third-generation iPads that have a cellular connection.

President Obama has 60 days to review the order and can veto it.

Apple said it intended to appeal the decision, so it will be some time until the commission’s decision goes into effect, if at all.

“We are disappointed that the commission has overturned an earlier ruling and we plan to appeal,” said Steve Dowling, an Apple spokesman. “Today’s decision has no impact on the availability of Apple products in the United States.”

The ban already faces challenges because of executive orders issued by Mr. Obama on Tuesday to tighten regulations at the Patent and Trademark Office. One order, labeled “Strengthen Enforcement Process of Exclusion Orders,” called for a strict review of the procedures that the commission uses to enforce exclusion orders.

The order noted that enforcement of a ban would be difficult when the ban involves “a technologically sophisticated product such as a smartphone” because customs officials would have trouble telling the difference between a redesigned product, which would not be banned, and an older model that has been banned.

Samsung, which in August lost the patent case and was told to pay Apple more than $599 million in damages, endorsed the commission’s ruling.

“We believe the I.T.C.’s final determination has confirmed Apple’s history of free-riding on Samsung’s technological innovations,” Samsung said in a statement.

Carolina Milanesi, vice president of Gartner Research, who tracks the smartphone industry, said that even if the ban went through, it would not have a huge impact on Apple. She said the majority of iPhones sold today are the iPhone 4S and iPhone 5 models, which are not included in the ban. When the next iPhone comes out, the iPhone 4 model will be even less relevant to Apple’s bottom line, she said.

“It has more to do with counting the blows between the two parties, and this is one for Samsung, but materially there is not going to be a huge impact,” Ms. Milanesi said.

Mr. Dowling said Samsung’s actions had not held up in courts outside the United States. He added: “Samsung is using a strategy which has been rejected by courts and regulators around the world.”

Article source: http://www.nytimes.com/2013/06/05/technology/apple-violates-samsung-patent-us-trade-panel-says.html?partner=rss&emc=rss

Foxconn Begins Bribery Investigation

The company said last week that an internal investigation had uncovered possible wrongdoing in the supply chain and that those findings had been shared with the authorities in China.

The announcement is the latest setback for Foxconn, which produces a growing share of the world’s smartphones, laptop computers and other electronics.

“We can confirm that we are working with law enforcement officials whom we brought in to work with our own internal audit team as part of an investigation into allegations against a number of Foxconn employees related to illegal payments from supply chain partners,” Foxconn said in a statement e-mailed to the news media.

“Since the matter is under investigation, we are not able to comment further,” Foxconn said. “However, we can say that the integrity of our employees is something we take very seriously and any employees found guilty of any illegal actions or violations of our company’s Code of Conduct will be prosecuted to the fullest extent of the law. We are also carrying out a full review of our policies and practices to identify steps we can take to strengthen such measures to further mitigate against such actions.”

Foxconn, which is based in Taiwan but has production facilities throughout China, did not offer details about the nature of the investigation or how the problem was uncovered. But last week, the Taiwan edition of Next Magazine reported that a Foxconn executive in the coastal Chinese city of Shenzhen had been detained by the police on bribery allegations.

In its report, Next magazine said an executive at Foxconn’s operation in Shenzhen had been detained after being accused of asking for bribes from suppliers, and that two executives overseeing the company’s production of Apple products had left their positions in recent months.

Foxconn is considered one of the world’s most reliable suppliers of electronics. But the company’s image has been tarnished in recent years by labor strikes, accusations of poor working and safety conditions, and a spate of worker suicides at some of its Chinese factories.

Apple has strongly defended its partner against allegations of poor working conditions and Foxconn executives have responded in the past year by upgrading its management, work standards and production facilities.

Article source: http://www.nytimes.com/2013/01/14/business/global/foxconn-begins-bribery-investigation.html?partner=rss&emc=rss

DealBook: Qualcomm Buys a Stake in Sharp

Sharp flat-panel televisions on display in Tokyo in November.Yoshikazu Tsuno/Agence France-Presse — Getty ImagesSharp flat-panel televisions on display in Tokyo in November.

TOKYO – Qualcomm will invest $120 million in the struggling Japanese electronics giant Sharp, throwing a fresh lifeline to the company after Sharp issued a dire warning last month about its ability to keep operating.

In a statement, Sharp, the maker of Aquos televisions, said it would issue 4.9 billion yen ($59.7 million) worth of new shares to Qualcomm at 164 yen a share, a slight discount to the company’s closing share price on Tuesday. Sharp said it had secured a second investment of up to 5 billion yen from Qualcomm, which is based in San Diego.

The initial investment is likely to make Qualcomm Sharp’s biggest shareholder, with a 2.65 percent stake, Reuters said. According to the statement, the two manufacturers will develop liquid crystal displays based on a new technology that Sharp has touted called IGZO, which the company says is more energy efficient, offers crisper resolution and allows for more sensitive touch screens.

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Sharp, based in Osaka, Japan, has been hurt by heavy losses in its flat-panel display business, which has been pummeled by intense competition from the likes of Samsung Electronics of South Korea.

The company’s woes, called the “Sharp Shock” in Japan, have underscored a wider decline of Japanese consumer electronics companies in the face of a painfully strong yen, a plunge in prices from cutthroat global competition and a dearth of breakthrough ideas.

Sharp announced this year that it planned to accept a 67 billion yen investment from Taiwan’s Foxconn Technology, but a deal has become less certain as its financial woes have deepened and its share price has plummeted.

Sharp, also a supplier of screens for Apple products, has eliminated jobs for the first time in six decades and put up its corporate headquarters as collateral to secure a 360 billion yen bank bailout in September.

Despite the bailout, Sharp said last month that there was “material doubt” over its ability to survive after forecasting a record 450 billion yen loss for the year through March, though it vowed to take steps against such an outcome. Sharp’s president, Takashi Okuda, said at the time that the company was exploring partnerships.

Since then, news reports had linked Sharp with technology companies including Dell, Intel, Hewlett-Packard, Microsoft, Google and Apple. Sharp denied those reports, saying nothing had been decided.

Shares in Sharp gained 1.2 percent, to 174 yen, in Tokyo on Tuesday after the Nikkei business daily reported details of the deal. Sharp’s stock has lost three-quarters of its value this year.

Article source: http://dealbook.nytimes.com/2012/12/04/sharp-in-tie-up-with-qualcomm/?partner=rss&emc=rss

Group Criticizes Apple’s Environmental Record in China

SHANGHAI — A Chinese environmental group has singled out Apple for criticism, accusing the company’s Chinese suppliers of discharging polluted waste and toxic metals into surrounding communities and threatening public health.

The group, the Institute of Public and Environmental Affairs in Beijing, released a 46-page report Wednesday documenting what it said was pollution from the dozens of “suspected” Apple suppliers throughout China.

The report, which the group said was based on visits to many of the factories’ regions, said that factories that the group suspected were Apple suppliers often “fail to properly dispose of hazardous waste” and that 27 of the suppliers had been found to have environmental problems.

An Apple spokesman said Wednesday that the company had been aggressively monitoring factories in its supply chain with regular audits.

“Apple is committed to driving the highest standards of social responsibility throughout our supply chain,” said Steve Dowling, a spokesman for Apple, which is based in Cupertino, Calif.

He added: “We require that our supplier provide safe working conditions, treat workers with dignity and respect, and use environmentally responsible manufacturing processes wherever Apple products are made.”

Apple’s products have grown hugely popular in China, which already has the world’s busiest Apple stores. But the company has also been dogged by challenges here, though Apple does not typically disclose its list of suppliers.

Last year, one of Apple’s biggest suppliers was hit by a wave of worker suicides at several of its mainland Chinese facilities. And in May, an explosion and fire at a plant that made Apple products killed two people and injured more than a dozen in the city of Chengdu, in southwest China.

Also earlier this year, Apple acknowledged that 137 workers at a Chinese factory near the city of Suzhou had been seriously injured by a toxic chemical used in making the signature slick glass screens of the iPhone.

But Apple is hardly the only company facing criticism over its Chinese supply chain. In recent years, dozens of multinationals have been accused of using Chinese factories that employed child labor, violated the country’s labor laws and fouled its waterways.

Supply chain experts say brand-name companies generally do a better job of monitoring and auditing their suppliers than smaller companies in China.

But most experts agree that while conditions have improved at many work sites, labor violations and the discharge of toxic waste remain major problems.

Apple said it carried out its own regular audits of supplier factories. It issues a report each year detailing problems it faced and explaining its monitoring practices and how it induces suppliers to correct violations within 90 days.

In many cases, Apple says that its audits are the first conducted by any company on the facilities, and that many of those involve environmental audits.

But Ma Jun, the director of the Institute of Public and Environmental Affairs, said Thursday that Apple had a poor environmental record and that the company had been less responsive to the group’s investigations than other electronics makers.

(Mr. Ma did say, however, that Apple had agreed to discuss the latest report.)

A similar report on Apple was issued by his group last January.

“Apple has made this commitment that it’s a green company,” Mr. Ma said by telephone Thursday. “So how do you fulfill your commitment if you don’t consider you have responsibility in your suppliers’ pollution?”

Gu Huini contributed research.

Article source: http://www.nytimes.com/2011/09/02/technology/apple-suppliers-causing-environmental-problems-chinese-group-says.html?partner=rss&emc=rss

Apple Suppliers Causing Environmental Problems, Chinese Group Says

SHANGHAI — A Chinese environmental group has singled out Apple for criticism, accusing the company’s Chinese suppliers of discharging polluted waste and toxic metals into surrounding communities and threatening public health.

The group, the Institute of Public and Environmental Affairs in Beijing, released a 46-page report Wednesday documenting what it said was pollution from the dozens of “suspected” Apple suppliers throughout China.

The report, which the group said was based on visits to many of the factories’ regions, said that factories that the group suspected were Apple suppliers often “fail to properly dispose of hazardous waste” and that 27 of the suppliers had been found to have environmental problems.

An Apple spokesman said Wednesday that the company was looking into the allegations contained in the report and that the company had been aggressively monitoring factories in its supply chain with regular audits.

“Apple is committed to driving the highest standards of social responsibility throughout our supply chain,” said Steven Dowling, a spokesman for Apple, which is based in Cupertino, California. “We require that our supplier provide safe working conditions, treat workers with dignity and respect, and use environmentally responsible manufacturing processes wherever Apple products are made.”

Apple’s products have grown hugely popular in China, which already has the world’s most frequented Apple stores. But the company has also been dogged by challenges here, though Apple does not typically disclose its list of suppliers.

Last year, one of Apple’s biggest suppliers, Foxconn Technology Group of Taiwan, was hit by a wave of worker suicides at several of its mainland Chinese facilities. And in May, an explosion and fire at a Foxconn plant that made Apple products killed two people and injured more than a dozen in the city of Chengdu, in southwest China.

Also earlier this year, Apple acknowledged that 137 workers at a Chinese factory near the city of Suzhou had been seriously injured by a toxic chemical used in making the signature slick glass screens of the iPhone.

But Apple is hardly the only company facing criticism over its Chinese supply chain. In recent years, dozens of multinationals have been criticized for using Chinese factories that employ child labor, violate the country’s labor laws and foul its waterways.

Supply chain experts say brand-name companies generally do a better job of monitoring and auditing their supply chain than smaller companies in China. But most experts agree that while conditions have improved at many work sites, labor violations and the discharge of toxic waste continue to be major problems.

Apple says it carries out its own regular audits of supplier factories. It issues a report each year detailing problems it faced and explaining its monitoring practices and how it induces suppliers to correct violations within 90 days.

In many cases, Apple says that its audits are the first conducted by any company on the facilities, and that many of those involve environmental audits.

But Ma Jun, the director of the Institute of Public and Environmental Affairs, said Thursday that Apple had a poor environmental record and that the company had been less responsive to the group’s investigations than other electronics makers. (Mr. Ma did, however, say that Apple had agreed to meet with his organization to discuss the latest report.) A similar report on Apple was issued by his group last January.

“Apple has made this commitment that it’s a green company,” Mr. Ma said by telephone Thursday. “So how do you fulfill your commitment if you don’t consider you have responsibility in your suppliers’ pollution?”

Gu Huini contributed research.

Article source: http://feeds.nytimes.com/click.phdo?i=f6850784b4a7437bdb37624dfe35d0ab