Qualcomm seeks ban on iPhones, says Apple infringes its patents
Qualcomm, the world's largest manufacturer of mobile phone chips, has petitioned for the sale of certain iPhones in the US to be banned. It alleges that iPhones that use chips by competitors, like Intel, have infringed at least six of Qualcomm's patents. Qualcomm stated it had urged the US International Trade Commission (ITC) to probe and exact an import block on iPhones.
Apple's $1 billion lawsuit against Qualcomm
On 20th January 2017, Apple filed a $1 billion lawsuit against mobile chip-maker Qualcomm for charging fees for patents "they have nothing to do with". Apple cited technology like TouchID, cameras, and displays as categories where Qualcomm was killing competition by making licensing costly. Apple accused Qualcomm of charging "excessive royalties...at least five times more" than all other cellular patent licensors combined.
Qualcomm's stocks fall, company hits back at Apple
Qualcomm's stock tanked more than 12% after the news of the Apple lawsuit became public, where the company was accused of unfairly charging royalties for technology "it has nothing to do with." Qualcomm in its reply said that Apple had deliberately mischaracterized their agreements. Qualcomm CEO said that Apple's lawsuit was a 'direct assault' on Qualcomm's business model.
What is Qualcomm's business model and how it affects Apple?
Qualcomm supplies modem chips that allow phones to connect to cellular networks and also levies licensing fees for almost every modern phone. Regardless of how much Qualcomm's technology a device uses, the company charges for the entire device. Apple pays 3-4% of an iPhone's bill to Qualcomm and has blamed Qualcomm of hiding behind a "thicket" of over 30,000 patents to "extort" royalties.
Qualcomm seeks to ban iPhone imports into the US
On April 28th, 2017, Apple stopped paying royalties to Qualcomm. In a surprising turn of events, Qualcomm, according to a Bloomberg report, will approach the US-based International Trade Commission asking for a ban on the import of iPhones into the US. Qualcomm, which has patented standardized technology for all smartphones, claims that Apple's decision to cut-off royalties violate contracts which predate the iPhone.
The patents under contention
The six of these patents that Qualcomm has accused Apple of infringing range from "battery-saving systems to patents for data-speed boosting aggregators".
