US ITC Recommends Ban on Chinese BOE OLED Imports

The United States International Trade Commission (ITC) has issued a preliminary ruling that Chinese company BOE infringed on Samsung Display’s organic light-emitting diode (OLED) trade secrets. If finalized, this decision could potentially disrupt BOE’s panel supply for Apple iPhones.

According to industry sources on July 14, the ITC issued a preliminary ruling on July 11 (local time) stating that BOE and seven of its subsidiaries, totaling eight companies, violated Section 337 of the Tariff Act by misappropriating Samsung Display’s trade secrets.

The ITC recommended two sanctions against BOE: a "limited exclusion order" and a "cease and desist order." The limited exclusion order prohibits the import of OLED panels, modules, and related components into the United States that were manufactured using Samsung Display’s trade secrets. The cease and desist order immediately bans all activities related to marketing, distributing, selling, advertising, or offering products containing the technology in question. This includes existing inventory and may extend beyond the United States to other regions.

Industry experts believe that since preliminary rulings are issued after the ITC conducts investigations into unfair trade practices, the possibility of a change in the final ruling is virtually non-existent.

Although specific sanctions were not detailed in this preliminary ruling, if the decision is finalized, BOE is expected to suffer significant consequences. In particular, there are observations that it may become difficult for Apple, which sources OLED panels for its standard iPhone models from BOE, to continue using BOE panels.

The ITC’s final ruling is expected to be made in November.

Previously, on Oct. 31, 2023, Samsung Display filed a complaint with the ITC against BOE for trade secret infringement.