The White House has stepped into a patent war between Apple and Samsung by vetoing a ban on imports of iPads and iPhones in the US.
The US International Trade Commission (ITC) in June banned the import or sale of the iPhone 4, iPhone 3GS, iPad 3G and iPad 2 3G distributed by AT&T Inc, saying the devices infringed a patent owned by the South Korean electronics giant.
But US Trade Representative Michael Froman vetoed the ban, saying his decision was in part based on its "effect on competitive conditions in the US economy and the effect on US consumers".
The decision marks a setback to the South Korean electronics company. However, Mr Froman said Samsung could continue to pursue its case through the courts.
The decision, dealing a blow to Samsung, was welcomed by Apple It is the first time since 1987 that a US administration has vetoed a product ban ordered by the trade panel.
Samsung said it was "disappointed" at the lifting of the ban.
"The ITC's decision correctly recognised that Samsung has been negotiating in good faith and that Apple remains unwilling to take a licence," it said in a statement.
Apple welcomed the news and applauded the administration "for standing up for innovation".
It added, "Samsung was wrong to abuse the patent system in this way".
US Trade Representative Michael Froman The Apple products targeted by the ITC ban are more than a year old, though some models such as the iPhone 4 remain solid sellers.
Apple sells more than 100 million iPhones annually, but it does not break down sales by models.
Apple and Samsung have been waging a global patent war since 2010, filing multiple lawsuits against each other over the design and functionality of their devices.
Apple argues Samsung's Android phones copy vital iPhone features. Samsung is fighting back with its own complaints.
Last year, a federal court ruled that Samsung owed Apple $1 billion in damages for infringing on non-essential Apple patents.
But the judge refused to impose an import ban on Samsung phones and later struck $450 million from the verdict, saying the jurors miscalculated.
The case is set for a rematch in appeals court.
Samsung is the world's largest maker of smartphones. Analysts estimate it outsold Apple nearly 2 to 1 in the first three months of the year.
However, Apple's smartphone business is more profitable.
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