Qualcomm files lawsuits in China to ban iPhones

Qualcomm Inc filed lawsuits in China, seeking to halt the manufacture and sale of Apple Inc’s iPhones in the country, Bloomberg reported on Friday.

Qualcomm filed the suits in a Beijing intellectual property court, claiming patent infringement and is seeking injunctive relief, Bloomberg said, citing a Qualcomm spokeswoman. 

‘Apple employs technologies invented by Qualcomm without paying for them,’ the spokeswoman said. 

A man takes pictures as the Apple iPhone 6s and 6s Plus went on sale at an Apple Store in Beijing. Qualcomm Inc filed lawsuits in China, seeking to halt the manufacture and sale of Apple Inc’s iPhones in the country.


In its US case, Qualcomm alleges that it has six patents developed in the past four years that improve battery life in mobile devices and that ‘Apple uses these technologies in its devices but is not paying for them.’ 

In its complaint to the ITC, Qualcomm asked the body to ban ‘iPhones that use cellular baseband processors other than those supplied by Qualcomm´s affiliates.’ 

Qualcomm has not alleged that Intel chips violate its patents but claims that the way Apple implements them in the iPhone does. 

Intel declined comment. 

Apple shares initially gave up some gains from earlier on Friday before recovering, while Qualcomm stock maintained small losses. 

The suits are based on three non-standard essential patents,covering power management and a touch-screen technology called Force Touch that Apple uses in current iPhones.

Qualcomm says they are ‘a few examples of the many Qualcomm technologies that Apple uses to improve its devices and increase its profits.’

However, Apple hit back, and spokesman Josh Rosenstock said ‘In our many years of ongoing negotiations with Qualcomm, these patents have never been discussed.

‘Like their other courtroom maneuvers, we believe this latest legal effort will fail.’

Apple’s shares were up marginally, while Qualcomm shares were little changed in afternoon trading.

Apple is waging a global legal battle on Qualcomm’s long-held practice of charging a percentage of the total price of iPhones and other Apple devices as a licensing fee for its patents.

Apple and Qualcomm did not immediately respond to requests for comment.

The allegations are part of broader dispute between Apple and Qualcomm, which supplies so-called modem chip technology that lets iPhones connect to cellular data networks, over the nature of Qualcomm’s business model of linking the sale of chips and patent licenses, which has come under scrutiny by regulators in South Korea, the United States and several other countries.

In January, Apple sued Qualcomm alleging that the company had withheld nearly $1 billion of patent license rebates it owed Apple in retaliation for Apple’s cooperation with South Korean regulators. 

Apple told its contract manufacturers to withhold license payments from Qualcomm while the dispute played out, which prompted Qualcomm to sue them in May.

iPhone chip supplier Qualcomm Inc faces a fresh set of antitrust allegations from a group of four companies that assemble the iPhone and other products on behalf of Apple Inc

Much of the language in the contractors’ allegations mirror Apple’s objections to Qualcomm’s business model. 

A senior Apple official confirmed that the company is helping to fund the contractors’ legal defense as part of an indemnification agreement among the firms. Apple has also formally joined the contractor case as a defendant.

The lost license revenue from Apple has been a hit to Qualcomm’s sales. 

Analysts expect $5.2 billion in revenue for the June quarter, down from $6 billion a year earlier.




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