Friday, December 6, 2013

The Big Hit: The Houston Chronicle for Samsung


Bookmark and ShareBy Robyn Kratzer, Vice President, Houston

Edelman client Samsung had been embroiled in U.S. International Trade Commission (ITC) litigation with Apple in two cases. In the first case ITC issued Samsung an exclusion order, noting that Apple had infringed on one of Samsung’s FRAND-encumbered SEPs that enables devices to operate on 3G mobile networks. In the second case, which was set to be determined Thursday, August 1, Apple was arguing that Samsung was infringing on patents covering unique functional aspects of its mobile devices or their physical designs (essentially rounded rectangular devices). Additionally, the Obama administration had the option to veto either ruling on Friday, August 2.

Confronted by the imminent decision from the ITC on August 1, Samsung lobbyists asked Edelman to provide strategic political “air cover” in Texas and New Jersey where several members of Congress supported Samsung. The Edelman D.C. team decided it would reach out to the Network for assistance in placing third party op-eds in key regional papers in these states, one of which was Houston. An op-ed highlighting the potential negative impact the case might have on the Texas economy was drafted and bylined by signatory, Carroll G. Robinson, a Houston area attorney and trustee of the Houston Community College System. 

Key messages for client included that: 
  • Samsung had announced plans to invest $4 billion in the expansion of the company’s manufacturing plants in Austin, marking the largest foreign investment ever made in the State of Texas. Additionally, the prospect of court-ordered injunctions on high-tech products could potentially disrupt the free flow of commerce and negatively impact the Texas economy and job creation.
  • Injunctions, if allowed, could have a chilling effect on companies’ decisions to invest in the U.S. and local state economies.
  • An import ban could remove products that are essential to market competition.
Challenges
Due to the imminent ruling on August 1 and the potential Obama administration veto on either ruling on Friday, August 2, the placement of a third-party op-ed became critical and time sensitive. Edelman D.C. contacted the Houston office on July 26. The bylined op-ed was pitched to Houston Chronicle editorial page editor, Jeff Cohen, and the pitch, coordination and placement of the op-ed occurred within three business days. Coverage was posted online at Chron.com on July 30 and in the hard copy of the paper the next morning, July 31. Coverage can be found here


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