Qualcomm files suit to block iPhone sales in China
14 October, 2017, 00:44 | Author: Pamela Mathis
According to a Bloomberg report, Qualcomm has escalated its legal battle against Apple by filing multiple new lawsuits in China, seeking a ban on sale and manufacture of iPhones in the country. And, however unlikely, such a ruling would have a huge effect on Apple since the iPhone provides two thirds of its revenue. "Apple employs technologies invented by Qualcomm without paying for them", a Qualcomm spokesperson told Bloomberg. This is the latest strike in a legal war between the two companies, which started out in the United States and has since expanded worldwide. Qualcomm's suit says that Apple infringed on a trio of patents covering Force Touch and power management.
The latest suits come at a crucial time for Apple. The Greater China region accounted for 22.5 percent of Apple's $215.6 billion sales in its most recent financial year.
Qualcomm's latest move is part of its countersuit agains the antitrust claims Apple filed against it earlier this year.
Although Apple doesn't use Snapdragon processors in its iPhones, it's still on the hook for numerous patents Qualcomm owns. The deal now in place still requires that Apple pay a fee regardless of whether the phone includes a Qualcomm chip, though. Apple also has asked iPhone and iPad manufacturers not to pay royalties to Qualcomm for failing to offer its standard essential patents in a fair, reasonable and non-discriminatory manner.
Soon after its first legal salvo, Apple cut off licensing payments to Qualcomm. Qualcomm stock is down 19 percent this year compared with a 35 percent gain by the benchmark Philadelphia Stock Exchange Semiconductor Index.
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