UPDATED 20:43 EDT / MARCH 26 2019

POLICY

Apple/Qualcomm legal ruling could result in US iPhone ban

A fresh ruling in Apple Inc.’s ongoing legal tussle with Qualcomm Technologies Inc. could result in some iPhone models being banned from the U.S.

In a ruling today, International Trade Commission Judge MaryJoan McNamara found Apple guilty of infringing on two of Qualcomm’s patents relating to data download speeds and power management. As a result, some iPhone models built using modems supplied by Qualcomm’s rival Intel Corp. could face an import ban from China, where they’re built, to the U.S.

McNamara’s judgment is still pending a review by the ITC, however, so Apple could get a reprieve. The iPhone maker may also take heart from a second ruling issued today in which the commission rejected Qualcomm’s claims of another patent infringement.

This week’s rulings follow another verdict in a separate legal case earlier this month that found Apple infringed on three different Qualcomm patents. Apple was forced to pay Qualcomm $31 million following that verdict.

That is mere pocket change for either company, but the chipmaker is bracing itself for another, more important trial next month. That hearing will address Qualcomm’s alleged anticompetitive patent licensing practices, as well as the patent royalties it alleges it’s owed by Apple for breaking the terms of their long-running business relationship.

The trials all stem from a $1 billion lawsuit filed by Apple against Qualcomm more than two years ago, which alleged that the latter firm was overcharging for royalties on its patents. Since then, both companies have slapped each other with a series of counter-lawsuits in the U.S. and other countries. Qualcomm has won bans on the sale of some older iPhone models in China and Germany.

“This is an epic battle between the former partners who still are in supplier/customer relationship,” said Holger Mueller, principal analyst and vice president of Constellation Research Inc. “It’s key to separate the two issues – if Apple stole Qualcomm IP, and if Qualcomm abused its market power. Even if Qualcomm abused its market position, it does not allow anyone, including Apple, to commit IP theft.”

The dispute has completely destroyed the once prosperous relationship between Apple and Qualcomm. The two companies were once key partners, with Apple securing an exclusive licensing arrangement to use Qualcomm’s modems, which provide connectivity for its iPhones and other devices. Last year however, Apple switched to Intel Corp., its exclusive supplier of modems for newer iPhones, after claiming that Qualcomm was refusing to sell it any more parts. The company may also be looking at building its own modems in future, if recent job listings are any indication of its plans.

Qualcomm has also claimed that Apple basically stole its technology and provided it to Intel, violating more of its patents in the process.

Photo: JESHOOTS-com/Pixabay

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