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Qualcomm to Pursue iPhone Import Ban in United States in Ongoing Apple Feud

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The legal battle between Qualcomm and Apple is heating up, with Qualcomm planning to seek an import ban that would prevent iPhones from being able to enter the United States, reports Bloomberg. Qualcomm is reportedly "incensed" over Apple's decision to stop paying licensing fees during the dispute and is aiming to retaliate.
Qualcomm is preparing to ask the International Trade Commission to stop the iPhone, which is built in Asia, from entering the country, threatening to block Apple's iconic product from the American market in advance of its anticipated new model this fall, according to the person, who asked not to be identified because the discussions are private.
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Qualcomm and Apple have been facing off in an ongoing legal dispute since January that started when the FTC complained that Qualcomm had engaged in anticompetitive patent licensing practices. Shortly after the FTC complaint, Apple sued Qualcomm, accusing the company of charging unfair royalties for "technologies they have nothing to do with" and refusing to pay quarterly rebates.

qualcomm_logo.jpg

In April, Qualcomm countersued, accusing Apple of breaching licensing agreements, making false statements, and encouraging regulatory attacks against Qualcomm's business in multiple countries. Qualcomm claims Apple "could not have built the incredible iPhone franchise" without relying on Qualcomm's "fundamental cellular technologies."

The lawsuit heated up in late April when Apple stopped making royalty payments to Qualcomm and confirmed it would not continue payments until a court figured out the total amount that was owed. Apple CEO Tim Cook yesterday reiterated that Apple could not pay the fees without the court deciding what amount should be paid due to Qualcomm's refusal to license its patents under FRAND (Fair, Reasonable, and Non-Discriminatory) terms.
In terms of why we're withholding payments, you can't pay something when there's a dispute about how much is needed to be paid. There hasn't been a meeting of the minds there. At this point, we need the courts to decide that. [...]

The reason we are pursuing this is that Qualcomm is trying to charge Apple a percentage of the total of the iPhone value, but their modems/patented technologies are one small part of the iPhone. We don't think that's right, so we're taking a principle stand on it. We strongly believe we're in the right, as they probably think they are.
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The United States International Trade Commission could potentially put a stop to iPhone shipments to the United States should the ITC side with Qualcomm. ITC cases are processed more quickly than cases in the federal courts, where this lawsuit will likely be drawn out for years to come.

Article Link: Qualcomm to Pursue iPhone Import Ban in United States in Ongoing Apple Feud
 
Article Link
https://www.macrumors.com/2017/05/03/qualcomm-iphone-important-ban-us/
Andres Cantu said:
Good luck with getting the iPhone banned in the U.S.
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It did happen. Broadcom got all of Qualcomm's chips banned for import by the ITC during their patent dispute. This meant no phones at all for Verizon and Sprint.

Carriers had to pay license fees directly to Broadcom to get around it. Major factor in Qualcomm's eventual settlement.
http://www.mercurynews.com/2007/08/06/u-s-upholds-import-ban-on-qualcomm-chips/

Because Apple doesn't participate in wireless standards, they have no IP to fight back, so I'd venture to guess that they're in a much weaker position than Qualcomm.
 
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The last time Apple tried to get out of paying for a FRAND patent because they claimed the price was too high, the ITC banned their devices from import:

ITC Rules Apple Infringed on Samsung Patents, Issues Cease and Desist Order for Older Apple Devices - MacRumors 2013

And that was with Samsung reportedly asking for "a licensing fee of 2.4% per device sold, which Apple found to be unreasonable." The ITC ruled 1) that royalties based on price were standard with cellular patents, and that 2) it was just an initial offer, which Apple was expected to negotiate down.

Fortunately for Apple, the Obama administration stepped in and vetoed the import ban, saying that a ban could not used for a FRAND situation... unless the licensee continued to avoid actual negotiating.

Not so sure Trump would do the same, if the ITC rules in a similar manner.

 
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Well this makes it pretty clear why Apple decided to source cellular chipsets from Intel.

Having multiple suppliers for a part means that if one company sues to stop sales of one supplier's part, they can use the other's.
 
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My uneducated baseless theory of the genesis of all of this, is, that Apple is building its own chips with the Qualcomm technology built in. Much the same way that Apple pays ARM licensing for the chips that Apple builds.

But...that in the process it opened a big can of worms in what that amount should be. With Apple finding that Qualcomm charges more for products going into Apple products vs everyone else.
 
Quu said:
Due to FRAND though it should be reasonable and Apple is arguing the royalties aren't reasonable.
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Plus if you looked at the earnings report carefully, Apple is putting all the unpaid money into an account, so they can pay everything at a moment's notice. With the money being right there in case Qualcomm wins a court case, it is extremely unlikely that Qualcomm would win an injunction.

rp2011 said:
My uneducated baseless theory of the genesis of all of this, is, that Apple is building its own chips with the Qualcomm technology built in. Much the same way that Apple pays ARM licensing for the chips that Apple builds.
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No, Apple buys and has always bought these chips from various manufacturers who build them with a license from Qualcomm.
 
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rp2011 said:
Not so sure Trump would do the same, if the ITC rules in a similar manner.
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Think about it: Trump grabbing women? No-one complains. Trump stops British footballers and school teachers from entering the USA because of muslim names (and gets American ex-police chiefs arrested for the same reason)? Nobody cares. Trump drops bombs and threatens the maddest people in all of Asia? Silence.Americans can't buy iPhones? Trump will be gone in five minutes.
 
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zorinlynx said:
Well this makes it pretty clear why Apple decided to source cellular chipsets from Intel.

Having multiple suppliers for a part means that if one company sues to stop sales of one supplier's part, they can use the other's.
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No matter Apple uses Qualcomm's chips or Intel's chips, under Qualcomm's current licensing requirements, Apple always needs to pay Qualcomm loyalties at a rate about $10 per iPhone. That rate will automatically increase if Apple does raise its phone price this year as rumored.
 
gnasher729 said:
Think about it: Trump grabbing women? No-one complains. Trump stops British footballers and school teachers from entering the USA because of muslim names (and gets American ex-police chiefs arrested for the same reason)? Nobody cares. Trump drops bombs and threatens the maddest people in all of Asia? Silence.Americans can't buy iPhones? Trump will be gone in five minutes.
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When did I say the quoted? I must be losing it big time.
 
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