Qualcomm seeks to block US iPhone imports - report

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in iPhone
As a part of the legal battle between the two firms, Qualcomm is reportedly looking to secure a ban on Apple's U.S. iPhone imports -- a move that would financially devastate the Cupertino tech giant if successful.




The move is in retaliation for Apple's decision to withhold billions of dollars in patent licensing fees, a source told Bloomberg on Wednesday. The petition will allegedly be filed through the U.S. International Trade Commission, which can potentially act faster than federal courts.

In January Apple leveled a $1 billion lawsuit against Qualcomm, charging it with abusing its market dominance to obtain unfair royalties, as well as forcing chip buyers to enter into patent licenses. A month ago, Qualcomm began a countersuit arguing that Apple broke contract and wants to pay less than fair market value for licenses.

The Americas are Apple's biggest market -- in the recent March quarter, the region generated nearly $21.2 billion in revenue. Most of that likely stemmed from the U.S., ensuring that Apple would want to fight tooth-and-nail against any ITC ban.

iPhones are considered imports in the U.S. because, despite Apple being headquartered in California, the devices are primarily assembled in China.
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Comments

  • Reply 1 of 26
    9secondkox29secondkox2 Posts: 446member
    Methinks Qualcomm is in deep doodoo... 

    some me of the patents they leverage are not things that should be patented. 

    but forcing someone whose buying a piece of hardware to then license your patents at additional and exorbitant expense?

    i see an FTC COLLISION WITH Qualcomm. Pretty much case closed if Apple is being factual.  
    edited May 2017 jbdragonwatto_cobra
  • Reply 2 of 26
    phone-ui-guyphone-ui-guy Posts: 1,018member
    Intel needs to step up and cover the other radio needs for the iPhone. They are leaving lots of money on the table only being able to be used for a subset of the carriers.
    watto_cobra
  • Reply 3 of 26
    maestro64maestro64 Posts: 4,418member
    Well this could be interesting, but I think the courts will see QUALCOMM actions as retaliation for Apple suing them and the courts usually do not take kindly to this kind of action.
    magman1979jbdragonwatto_cobra
  • Reply 4 of 26
    mknelsonmknelson Posts: 284member
    Financially devastate?

    With how much cash in the bank?

    They certainly wouldn't be happy, but I think Apple would survive.
    brakkenwatto_cobra
  • Reply 5 of 26
    sflocalsflocal Posts: 4,396member
    So Qualcomm thinks banning iPhone's in the U.S. will harm Apple?

    I think Apple ditching Qualcomm for Intel, or someone else will do far more damage to Qualcomm than anything it can do to Apple.

    Qualcomm is the ant to Apple's boot.  
    magman1979brakkenmacpluspluspscooter63Anilujbdragonwatto_cobra
  • Reply 6 of 26
    sdw2001sdw2001 Posts: 16,918member
    mknelson said:
    Financially devastate?

    With how much cash in the bank?

    They certainly wouldn't be happy, but I think Apple would survive.

    They'd survive but there is just no way they are going to do that.  The Commission is comprised of six members.  By law they are bipartisan.  Banning Apple from importing iPhones would not only harm Apple, but would impact the overall economy and consumers significantly.  There is just no way they are going to do that over a company to company dispute.  This is nothing but a Hail Mary from Qualcomm.  
    watto_cobra
  • Reply 7 of 26
    SpamSandwichSpamSandwich Posts: 30,578member
    Could lead to a ruling of patent exhaustion and invalidate their claims. Fingers crossed!

    Apple could also file a restraint of trade claim in Federal court that could delay or prevent such a move, but barring that, there's no reason Apple couldn't aggressively spearhead a hostile takeover of Qualcomm. They have a market cap of $80 billion. If Apple offered Qualcomm shareholders $80-100 per share, they'd jump on it.
    edited May 2017 magman1979watto_cobra
  • Reply 8 of 26
    lkrupplkrupp Posts: 6,614member
    As if this could actually happen. I know, I know, it would be the ultimate wet dream of the troll army but only a dream.
    brucemcwatto_cobra
  • Reply 9 of 26
    boltsfan17boltsfan17 Posts: 2,111member
    The counter suit from Qualcomm is pretty hilarious. So does Qualcomm actually think the FTC would ban the iPhone when the FTC themselves have filed suit against Qualcomm for overcharging companies like Apple for royalties? 
    edited May 2017 magman1979radarthekatjbdragonjony0watto_cobra
  • Reply 10 of 26
    Could lead to a ruling of patent exhaustion and invalidate their claims. Fingers crossed!

    Apple could also file a restraint of trade claim that could delay or prevent such a move, but barring that, there's no reason Apple couldn't aggressively spearhead a hostile takeover of Qualcomm. They have a market cap of $80 billion. If Apple offered Qualcomm shareholders $80-100 per share, they'd jump on it.
    You realize that buying a company for a lot more than they are worth isn't a punishment, right?  And being "forced" to do something like this wouldn't be good for Apple. If Qualcomm prevails at the ITC (a huge IF) Apple would be in a world of hurt. 
  • Reply 11 of 26
    asdasdasdasd Posts: 5,204member
    The counter suit from Qualcomm is pretty hilarious. So does Qualcomm actually think the FTC would ban the iPhone when the FTC themselves have filed suit against Qualcomm for overcharging companies like Apple for royalties? 
    Have you got a link for that?
  • Reply 12 of 26
    chadbagchadbag Posts: 1,072member
    asdasd said:
    The counter suit from Qualcomm is pretty hilarious. So does Qualcomm actually think the FTC would ban the iPhone when the FTC themselves have filed suit against Qualcomm for overcharging companies like Apple for royalties? 
    Have you got a link for that?

    Just search on 'ftc sues qualcomm'.  Lots of articles. Jan 2017
  • Reply 13 of 26
    boltsfan17boltsfan17 Posts: 2,111member
    asdasd said:
    The counter suit from Qualcomm is pretty hilarious. So does Qualcomm actually think the FTC would ban the iPhone when the FTC themselves have filed suit against Qualcomm for overcharging companies like Apple for royalties? 
    Have you got a link for that?
    Here you go:

    https://www.ftc.gov/news-events/press-releases/2017/01/ftc-charges-qualcomm-monopolizing-key-semiconductor-device-used

    magman1979
  • Reply 14 of 26
    jsvrjsvr Posts: 1member
    The counter suit from Qualcomm is pretty hilarious. So does Qualcomm actually think the FTC would ban the iPhone when the FTC themselves have filed suit against Qualcomm for overcharging companies like Apple for royalties? 
    FTC did not file suit against Qualcomm for overcharging. Please read the FTC complaint in the link.


  • Reply 15 of 26
    fulcrumfulcrum Posts: 1unconfirmed, member
    Apple has lost at ITC before when they decided not to pay for Samsung's patents. Its does not seem like a hail Mary from Qualcomm. http://money.cnn.com/2013/06/04/technology/mobile/apple-samsung-itc/
    repressthisgatorguy
  • Reply 16 of 26
    brakkenbrakken Posts: 676member
    mknelson said:
    Financially devastate?

    With how much cash in the bank?

    They certainly wouldn't be happy, but I think Apple would survive.
    I despise this emotionalist BS writing style, too. I wish Dilger had written this and provided more insight and context than a click-bait generator. I'm quite sure Apple will put QC in its place, but I hope they go the extra step and put QC out of business, too.
  • Reply 17 of 26
    SpamSandwichSpamSandwich Posts: 30,578member
    Could lead to a ruling of patent exhaustion and invalidate their claims. Fingers crossed!

    Apple could also file a restraint of trade claim that could delay or prevent such a move, but barring that, there's no reason Apple couldn't aggressively spearhead a hostile takeover of Qualcomm. They have a market cap of $80 billion. If Apple offered Qualcomm shareholders $80-100 per share, they'd jump on it.
    You realize that buying a company for a lot more than they are worth isn't a punishment, right?  And being "forced" to do something like this wouldn't be good for Apple. If Qualcomm prevails at the ITC (a huge IF) Apple would be in a world of hurt. 
    If there was a good chance Qualcomm could tie up all iPhone imports (and I'm not saying there is), then Apple spending the money necessary to insure the safety of the company would be money well spent, don't you agree?
    edited May 2017
  • Reply 18 of 26
    radarthekatradarthekat Posts: 2,928moderator
    Could lead to a ruling of patent exhaustion and invalidate their claims. Fingers crossed!

    Apple could also file a restraint of trade claim that could delay or prevent such a move, but barring that, there's no reason Apple couldn't aggressively spearhead a hostile takeover of Qualcomm. They have a market cap of $80 billion. If Apple offered Qualcomm shareholders $80-100 per share, they'd jump on it.
    You realize that buying a company for a lot more than they are worth isn't a punishment, right?  And being "forced" to do something like this wouldn't be good for Apple. If Qualcomm prevails at the ITC (a huge IF) Apple would be in a world of hurt. 
    No they wouldn't.  They'd just immediately write QCOM a check for royalties Apple is already accruing on their books, going back to the same royalty structure Apple had been paying all along.  The only difference would be, instead of accruing payments to QCOM during their legal battle, they'd be back to paying them.
    edited May 2017
  • Reply 19 of 26
    gatorguygatorguy Posts: 19,808member
    The counter suit from Qualcomm is pretty hilarious. So does Qualcomm actually think the FTC would ban the iPhone when the FTC themselves have filed suit against Qualcomm for overcharging companies like Apple for royalties? 
    ITC and FTC are two different agencies. The FTC doesn't rule on import bans and the ITC isn't potentially bringing an action  against Qualcomm for their patent policies.  :)
  • Reply 20 of 26
    boltsfan17boltsfan17 Posts: 2,111member
    jsvr said:
    The counter suit from Qualcomm is pretty hilarious. So does Qualcomm actually think the FTC would ban the iPhone when the FTC themselves have filed suit against Qualcomm for overcharging companies like Apple for royalties? 
    FTC did not file suit against Qualcomm for overcharging. Please read the FTC complaint in the link.


    Yes they did. They are charging Qualcomm for violating the FTC Act. Here is a quote from the link I provided:

    "According to the complaint, by threatening to disrupt cell phone manufacturers’ supply of baseband processors, Qualcomm obtains elevated royalties and other license terms for its standard-essential patents that manufacturers would otherwise reject."
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