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Qualcomm recently filed lawsuits in China in an attempt to stop Apple from selling and manufacturing iPhones in the country, reports Bloomberg. Much of Apple's iPhone assembly process takes place in China, as does the manufacturing of many iPhone components. China is also an important market for Apple, accounting for 22.5 percent of Apple's sales in 2016.

In a filing with the Beijing intellectual property court on September 29, Qualcomm claimed patent infringement and requested injunctive relief. "Apple employs technologies invented by Qualcomm without paying for them," said a Qualcomm spokesperson about the filing.

qualcomm-iphone-7-800x374.jpg

According to Qualcomm, the lawsuits are based on three non-standard essential patents covering power management and the Force Touch technology that Apple uses in its touch screens.

Qualcomm and Apple have been embroiled in an escalating legal battle since the beginning of this year after the FTC complained that Qualcomm engaged in anticompetitive licensing practices. Shortly after, Apple sued Qualcomm for $1 billion and accused the company of charging unfair royalties for "technologies they have nothing to do with" and failing to pay for quarterly rebates.

Apple stopped paying licensing fees to Qualcomm at that time, as did Apple suppliers. Apple maintains that Qualcomm charges excessive licensing fees by requesting a percentage of an iPhone's entire value, while Qualcomm says its technology is "at the heart of every iPhone."

Qualcomm has since countersued and filed several patent infringement lawsuits against Apple. Qualcomm has also asked the United States International Trade Commission to block imports of some iPhone and iPad models.

Qualcomm is also facing an FTC lawsuit in the U.S. for using anticompetitive tactics to remain the dominant supplier of baseband processors for smartphones and was recently fined $773 million in Taiwan for violating antitrust rules.

Article Link: Qualcomm Asks China to Stop Manufacturing and Selling iPhones via New Lawsuits
 
If I understand right, it does seem absurd that Qualcomm gets a percentage of the device’s sale, since no matter what patents they hold, they have nothing to do with the cost of the components or the price people are willing to pay for the final product. No wonder Apple started making their own SOCs years ago. It’s probably what got this feud started.
 
If Qualcomm were based in China, this might have a snowball's chance. As it stands, a US company with a load of patents it uses to tax almost everything produced in China is suing a US company that injects billions of dollars into the Chinese economy every year. A company that is already toying with diversifying where it produces phones... that's a less-than-zero chance of success.

I could even see this backfiring somehow, just given the political situation in China and their unpredictability at the best of times.
 
When I visit San Diego (home of Qualcomm), there are billboards and radio ads going on and on about how important Qualcomm is to cellular communications and that we should be supporting them in all they do....
 
I’m trying to figure out what incentive the Chinese courts have to side with Qualcomm here. I’m thinking of a nice round number.
 
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If I understand right, it does seem absurd that Qualcomm gets a percentage of the device’s sale, since no matter what patents they hold, they have nothing to do with the cost of the components or the price people are willing to pay for the final product. No wonder Apple started making their own SOCs years ago. It’s probably what got this feud started.

@kdarling Where are you.:)

Lol, asking CHINA to enforce IP protections...Good luck with that, hahahaha.

China will protect those jobs, Quallcomm won't win there.
 
Regardless of where your sympathies lie... This is just the way these things are done, little different than when Apple asked for injunctions against the sale of Samsung phones. Wars are not (normally) waged in a single battle - there are multiple battles and skirmishes waged on a wide front. Each side wins some, each side loses some, and most wars end at the bargaining table.
 
Guessing this is the indication Apple will never use Qualcomm components ASAP, ever - and Qualcomm has realized it...cause they surely have burned the future bridges / orders here.

This wouldn't be without temptation for China and its government. China's droid mfrs would probably benefit in the end here....they have a huge number of Android mfrs that would sell more in such a case and the govt there is very involved with their industry (and quashing out foreign competition when the opportunity arises).

Preventing further production would a be a easy sucker punch to Apple (temporary of course) - could you imagine...no more 7 / 8 / X production before Xmas while "they study the issues"... Be interesting to see if China's govt takes the bait on this.
 
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