Apple wins reprieve from Obama administration over US iPhone and iPad ban

The Obama administration issued a veto on a proposed ban on a number of Apple products in the United States, including some older iPhone 4 and iPad 2 devices.

The ban was enforced in June by the US International Trade Commission (USITC), which found that some Apple devices infringed a patent held by South Korean rival Samsung Electronics for the way 3G services are transmitted.

However, in a letter from the President's Office to the Trade Commission, ambassador Michael Froman said: "After extensive consultations with the agencies of the Trade Policy Staff Committee and the Trade Policy Review Group…I have decided to disapprove the USITC’s determination to issue an exclusion order and cease and desist order in this investigation.

"This decision is based on my review of the various policy considerations discussed above as they relate to the effect on competitive conditions in the U.S. economy and the effect on US consumers."

Mr Fromer said the decision was "not a criticism of the Commission’s decision or analysis". He added: "My decision to disapprove this determination does not mean that the patent owner in this case is not entitled to a remedy. On the contrary, the patent owner may continue to pursue its rights through the courts."

President Obama, who had 60 days to review the ruling, had already said that he did not think the USITC should have the power to impose import bands in such cases.

Saturday's development is the latest twist in a long patent battle between the two electronics giants, with Apple losing a number of US cases. A previous trial in which jurors awarded Apple $1bn in damages is set to go to the appeals court later this year. In March, District Court Judge Lucy Koh lowered the damages awarded to Apple by $450.5m, saying jurors had not properly followed her instruction in calculating some of them.

The iPhone 4 was launched in 2010 and is the oldest iPhone still sold by Apple. Likely to be retired later this year, the ITC ruling related only to the iPad 2 and iPhone variants sold by AT&T. Although it also applies to older iPhones, though these are no longer sold.

In a statement, Apple said: "We applaud the Administration for standing up for innovation in this landmark case. Samsung was wrong to abuse the patent system in this way."

Samsung could not immediately be reached for comment.