Why did Japan ban Google’s Pixel 7 telephones? Might extra fashions observe? – Firstpost

Japan’s Tokyo District Courtroom has ordered a ban on the sale, import, commercial and even public exhibition of Google’s Pixel 7 and Pixel 7 Professional smartphones.

The court docket discovered that the gadgets infringed on a patented communication methodology utilized in 4G LTE networks — a judgment that poses broader implications for Google’s {hardware} future in one among its most promising worldwide markets.

The lawsuit, initially filed by South Korean firm Pantech, centres round a patent associated to how cellphones work together with base stations by sending and receiving “acknowledgement alerts” (additionally known as ACK) — a mechanism important to making sure secure information transmission in 4G environments.

This extremely particular performance is built-in deeply into the interior operation of smartphones that utilise LTE connectivity.

Pantech, although now not a participant within the world smartphone {hardware} enterprise, nonetheless holds a portfolio of lively standard-essential patents (SEPs).

The agency claims that Google applied its know-how within the Pixel 7 and Pixel 7 Professional with out buying the required license to take action. The Tokyo court docket agreed, concluding that Google’s actions have been in violation of Japanese patent legislation.

The ruling impacts not solely industrial gross sales but additionally bans the promoting, importation, switch, and public show of the Pixel 7 and Pixel 7 Professional.

The gadgets can now not be distributed by means of retail channels or showcased by Google and its companions inside Japan.

Google’s courtroom conduct criticised by choose

Past the technical patent problem, the court docket’s judgement was formed by its evaluation of Google’s manner throughout the authorized course of. The presiding choose issued a pointy critique of the corporate’s habits, describing its method as “insincere.”

This characterisation reportedly influenced the severity of the court docket’s response, resulting in an outright ban fairly than a monetary penalty or mediated settlement.

The allegation of insincerity carries vital weight in Japanese authorized tradition, the place cooperation and transparency are extremely valued throughout litigation. In response to ET Information, this might need set the tone for a much more restrictive ruling than initially anticipated.

Patent holder Pantech now not makes telephones, however it’s not out of the sport

Pantech was as soon as a comparatively well-known South Korean smartphone model within the late 2000s and early 2010s.

Nevertheless, as manufacturers like Samsung and LG dominated the market, Pantech ultimately exited the cellular handset house. Regardless of this, it retained its mental property, together with patents integral to wi-fi communication applied sciences.

In recent times, Pantech has remodeled into what is commonly described as a “patent monetisation enterprise.” It’s now targeted on implementing its present mental property rights by means of the courts, typically concentrating on main gamers within the tech trade.

The corporate’s authorized marketing campaign is being supported by IdeaHub, a agency that specialises in figuring out, buying, and monetising invaluable know-how patents.

Earlier authorized actions by Pantech and IdeaHub have been introduced in opposition to a number of corporations, together with OnePlus, Niantic (the developer behind Pokémon Go) and smartphone producer BLU.

In a few of these circumstances, settlements have been reached; in others, court docket victories have been secured. The Japan ruling in opposition to Google marks one of many extra high-profile outcomes of this technique.

Pixel 8 and Pixel 9 may very well be subsequent in line

Whereas the rapid ruling applies solely to the Pixel 7 and Pixel 7 Professional, each Pantech and IdeaHub have already moved to provoke additional authorized proceedings concentrating on the newer Pixel 8 line and
the Pixel 9 collection.

Although the Japanese courts have but to problem a verdict on these fashions, authorized filings point out that the identical patent is being cited as the premise for the expanded injunction request.

If the ban extends to those newer fashions — that are actively being marketed or are anticipated to be launched later this 12 months — the implications may very well be considerably extra damaging for Google.

In contrast to
the Pixel 7 collection,
which is approaching three years since its launch,
the Pixel 8
remains to be a part of Google’s present product lineup. The Pixel 9, in the meantime, is predicted to be the centerpiece of the corporate’s upcoming product cycle.

For now, Google has not confirmed its subsequent steps. The corporate may attraction the choice, negotiate a licensing settlement with Pantech and IdeaHub, or design future gadgets in a means that avoids the patented know-how altogether.

Why this ruling issues in Japan issues to Google

Japan is not only any marketplace for Google. Over the previous few years, it has emerged as one of many few international locations outdoors of North America the place Pixel smartphones have made vital inroads.

The Pixel 7 and Pixel 7a, specifically, have been instrumental in serving to Google acquire market share in Japan. In response to information from Counterpoint Analysis, Japan surpassed the USA in Pixel shipments throughout the first quarter of 2023.

The recognition of Google’s smartphones in Japan has even allowed the corporate to briefly overtake Apple and change into the second-largest smartphone model within the nation.

This success was largely fuelled by the reception of the Pixel 7 collection and the mid-tier Pixel 7a, which appealed to Japanese customers by means of elements like value, digital camera capabilities and Google-exclusive software program options.

With this gross sales momentum now threatened by ongoing authorized uncertainty, analysts warn that even the notion of instability across the Pixel model may trigger a decline in shopper belief and buying behaviour — no matter whether or not the newer fashions ultimately face a proper ban.

How dormant patents are creating new challenges for tech giants

The Google-Pantech dispute is a part of a rising development throughout the tech trade — the place older, dormant patents are being resurrected and enforced, typically by corporations that now not play a direct position within the manufacturing of gadgets or companies.

Authorized consultants counsel that this tactic, whereas controversial, is turning into more and more widespread as former {hardware} companies search new methods to revenue from their IP portfolios.

The enforcement of standard-essential patents (SEPs) is especially contentious. These patents relate to basic applied sciences — reminiscent of 4G/LTE protocols — which are essential for interoperability.

Due to this, such patents are sometimes anticipated to be licensed beneath FRAND (Honest, Cheap, and Non-Discriminatory) phrases. Nevertheless, when a licensing deal fails or is just not sought in any respect, it may open the door to litigation and potential gross sales bans.

Within the case of Google, Pantech alleges that the corporate by no means acquired a correct license for the patented LTE communication method.

The Tokyo District Courtroom’s settlement with this declare, paired with its criticism of Google’s courtroom behaviour, signifies that Japanese courts are taking such IP issues severely — and are keen to problem sweeping bans even when the claimant now not actively produces associated merchandise.

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With inputs from companies