28/10/2017 Apple vs.

Qualcomm: Everything you need to know

Menu

Largest Get 15% bonus by referral

program for BTC and LTC
Ethereum ICO contributions

Home > Business > Apple vs. Qualcomm: Everything you need to know

Apple vs. Qualcomm: Everything you need to know

Qualcomm seeks to ban the sale and production of iPhones in China
By Christian de Looper Posted on October 13, 2017 1:24 pm

Maurizio Pesce / Flickr

Get today's popular Digital Trends articles in your inbox:

Enter your email SIGN UP

Apple and Qualcomm are engaged in what will

WHY IT MATTERS TO YOU
likely be a yearslong and epic battle. Following

Qualcomm is king of the mobile processor industry, but news that Qualcomm had been charging

back-to-back-to-back lawsuits by Apple may take a bite. heightened royalties for use of its tech, as well as
reports indicating Qualcomm required Apple to
pay a percentage of the iPhones revenue in return for the use of Qualcomm patents, Apple has sued the company in
three countries.

https://www.digitaltrends.com/business/apple-vs-qualcomm-news/ 1/9
28/10/2017 Apple vs. Qualcomm: Everything you need to know

In the United States, Apple is suing Qualcomm for a hefty $1 billion but it has also filed a lawsuit in China for $145
million, as well as in the United Kingdom. Now, Qualcomm is following with its own countersuit (but losing quite a bit of
money).

Heres everything you need to know about the lawsuit battle so far.

Qualcomm wants to ban iPhones in China

This ban has nothing to do with the Chinese government, but rather with Qualcomms claim that Apple has stolen
patents. According to a Bloomberg report, the chipmaker has now filed paperwork to ban both the sale and the
manufacturing of the popular smartphone in China.

Its Qualcomms latest and most pointed barb at Apple yet. A company
spokeswoman told Bloomberg, Apple employs technologies invented by
Qualcomm without paying for them, noting that the iPhones power management
and Force Touch features are just a few examples of the many Qualcomm
technologies that Apple uses to improve its devices and increase its profits.

Apple has refuted these claims, with a spokesman noting, In our many years of
ongoing negotiations with Qualcomm, these patents have never been discussed.
Like their other courtroom maneuvers, we believe this latest legal effort will fail.

Indeed, it would be a surprise if a Chinese court acquiesced to Qualcomms request, as there is no historical
precedent for such a move. But in this ugly legal battle, anything is possible.

Qualcomm asks U.S. trade regulators to ban iPhone imports

Qualcomm is seeking to ban certain iPhone models from sale in the U.S., according to a new lawsuit.

On July 7, the San Diego, California-based chip maker filed a complaint with the U.S. International Trade Commission
and the U.S. District Court for the Southern District of California requesting a Cease and Desist Order to to ban new
iPhones from coming into the country. It also asked regulators to bar further sales of iPhones that have already been
imported.

Qualcomm alleges that Apple is violating six patents that have to do with extending its battery life. Crucially, unlike the
other patents at dispute in the companies patent spat, it says that none are essential to a standard, and that
Qualcomm isnt required by law to license them.

https://www.digitaltrends.com/business/apple-vs-qualcomm-news/ 2/9
28/10/2017 Apple vs. Qualcomm: Everything you need to know

Qualcomms inventions are at the heart of every iPhone and extend well beyond modem technologies or cellular
standards, general counsel Don Rosenberg said in a statement. Apple continues to use Qualcomms technology
while refusing to pay for it.

If a ban were to go into affect, its not clear which iPhone models would be affected. But rulings from the U.S. ITC and
District Court are expected within weeks.

Apple claims that Qualcomm is operating an illegal business model

Apple upped the legal ante against Qualcomm in June 20 filings in federal court in San Diego. It said that there was
mounting evidence that Qualcomm operated an illegal business model, and that it sought to extract patent royalties
on every wireless device containing its chips.

Specifically, Apple alleged that at least some of the patents Qualcomm wants to
get paid for are invalid, and that the chipmaker hasnt fulfilled its obligation to
Gratis token de OTN charge fair and reasonable rates. The iPhone maker pointed to a U.S. Supreme
Empieza operando con Court ruling in May that limited the ability of patent owners to control the use of
criptomonedas con IQ Option
their products after theyre sold. Qualcomm, Apple said, is illegally double dipping
para conseguir tus tokens gratis!
by selling the chips it makes and also licensing its technology.
Open Trading Network

[We] found continuing and mounting evidence of Qualcomms perpetuation

of an illegal business model that burdens innovation, lawyers for Apple said. [It]
amounts to a scheme of extortion that allows Qualcomm unfairly to maintain and
entrench its existing monopoly [] This is precisely the kind of [] extra-reward system that the [court] seeks to
eliminate.

In a separate filing, Apple asked the court to dismiss several of Qualcomms counterclaims, including one that
accused Apple of making false statements about the quality of chips made by its competitor, Intel. It also denied
Qualcomms charges that its been pushing for regulatory investigations and interfering with Qualcomms contracts
with other manufacturers.

Apple may slow iPhone data speeds due to dispute

https://www.digitaltrends.com/business/apple-vs-qualcomm-news/ 3/9
28/10/2017 Apple vs. Qualcomm: Everything you need to know

The next iPhone may miss out on the faster gigabit LTE speeds coming soon to many carriers in the United States,
according to a report from Bloomberg. Despite the legal battles, Apple is still using Qualcomms modems in its
hardware. However, the company has also partnered with Intel in an effort to lessen its dependence on the chipmaker.

Right now, Qualcomms modems are the only ones on the market capable of supporting data transfers up to gigabit
speed. But sources tell Bloomberg that Apple doesnt want to create a discrepancy between similar products, so it will
intentionally disable that feature in Qualcomm-powered iPhones to achieve parity with the ones sporting Intel
modems.

If this approach sounds familiar, it is more or less what Qualcomm suggested in its countersuit against Apple. The
iPhone 7 also featured both Qualcomm and Intel modems a first for the brand and Qualcomm believes Apple
deliberately capped the performance of its chipsets so they wouldnt be superior to Intels.

Gigabit LTE hasnt arrived on American carriers yet, but theyre all experimenting with the technology. Many of the
newest flagship phones on the market, like Samsungs Galaxy S8, feature Qualcomms X16 modem, enabling them to
take advantage of the upgraded infrastructure when it finally rolls out as it is expected to later this year.

Qualcomm reportedly seeking iPhone import ban

Qualcomm is back on the offensive after Apple decided to suspend royalty payments to the chip manufacturer.
Bloomberg reports the company will soon make a request to the International Trade Commission to prevent the
importation of iPhones into the U.S.

The American market comprises 40 percent of Apples total sales, Bloomberg notes, and the iPhone is responsible for
60 percent of its global revenue.

However, on a Tuesday conference call, Apple CEO Tim Cook appeared confident that an injunction against Apple on
the basis of iPhone imports wouldnt stand because, as he put it, Qualcomm never issued fair terms to the iPhone
maker that are required for patent licensing.

Qualcomm has not made such an offer to Apple, Cook said. I dont believe anyones going to decide to enjoin the
iPhone based on that. Theres plenty of case law around that subject. But we shall see.

Qualcomm cuts profit forecasts

As a result of Apples decision to stop paying all royalties as both companies wait to hear the outcomes of their
respective lawsuits, Qualcomm has slashed its profit forecasts. On April 28, Reuters reported that Qualcomm would
not receive any royalties from Apples contract manufacturers for sales that took place in the first quarter of 2017.

Without an agreed-upon rate to determine how much is owed, we have suspended payments until the correct amount
can be determined by the court, an Apple spokesman said in an email on Friday.

Consequently, Qualcomm has adjusted its revenue estimates, and now is citing a revenue of $4.8 billion to $5.6 billion
for its third fiscal quarter, a decrease from its originally anticipated $5.3 billion to $6.1 billion.

(Apples) contract manufacturers may make some form of partial payment, but initial indications are that any payment
would likely be insignificant, Qualcomm said.

Qualcomm files countersuit against Apple

Qualcomm has followed Apples lawsuits with one of its own. You can read the full lawsuit here, but it is centered
around five complaints against Apple. For example, Qualcomm suggests Apple deliberately didnt take advantage of

https://www.digitaltrends.com/business/apple-vs-qualcomm-news/ 4/9
28/10/2017 Apple vs. Qualcomm: Everything you need to know

the full potential of Qualcomms chips in the iPhone 7 in an attempt to prevent them from outperforming Intels
modems. The iPhone 7 marks the first time in several years that Qualcomm chips are not found in all iPhone variants.

According to Qualcomm, Apple chose not to utilize certain high-performance features of the Qualcomm chipsets for
the iPhone 7 (preventing consumers from enjoying the full extent of Qualcomms innovation). On top of that, when
iPhones with Qualcomm chips outperformed devices with Intels chips, Apple claimed there was no discernible
difference between the two.

Another big part of Qualcomms suit revolves around Apples role in various regulatory suits, and that, according to
Qualcomm, Apple has been misrepresenting facts and making false statements.

Applefiles a third lawsuit against Qualcomm

Apple has filed yet another lawsuit against Qualcomm. The two companies were already at war in both the U.S. and in
China and now they will be going head to head in the U.K. According to reports, the U.K. lawsuit was actually filed in
January, but its only now being noticed after being refiled.

While we dont yet know specifics about the new lawsuit, it does have something to do with patents and designs,
according to a report from Bloomberg. Its likely that its similar to the lawsuits Apple has filed in the U.S. and China.

Qualcomm is ready for a fight

Qualcomm had some fighting words against Apple during a call on its quarterly earnings report. The chipset
manufacturers CEO, Steve Mollenkopf, said Apple just wants to grab as much money as possible from the lawsuits.

Apples complaint contains a lot of assertions, but in the end, this is a commercial dispute over the price of intellectual
property, Mollenkopf said, according to CNET. They want to pay less for the fair value that Qualcomm has
established in the marketplace for our technology, even though Apple has generated billions in profits from using that
technology.

He said Qualcomms patents have tangibly and meaningfully increased over time, but the company has never raised
its royalty rates. Derek Aberle, president of Qualcomm, chimed in.

If you peel apart all of the arguments Apples making, we believe firmly theyre all without merit, Aberle said. At the
end of the day, they essentially want to pay less for the technology theyre using. Its pretty simple.

But the CEO said Qualcomm will keep supplying chips to the Cupertino company, even while the legal battle rages
on.

Apple files patent lawsuit against Qualcomm in China for $145 million

Just a few days after Apple filed a lawsuit against Qualcomm in the U.S. for $1 billion, Apple announces it will also
take Qualcomm to court in China this time for only $145 million.

The motive behind the lawsuit is similar to the motive behind the U.S. lawsuit Apple is basically accusing
Qualcomm of not delivering on patent-related promises. Qualcomm isnt being silent about the suit.

These filings by Apples Chinese subsidiary are just part of Apples efforts to find ways to pay less for Qualcomms
technology, said Don Rosenberg, Qualcomm general counsel, in an interview with TechCrunch. Apple was offered
terms consistent with terms accepted by more than 100 other Chinese companies, and refused to even consider
them. These terms were consistent with our NDRC Rectification plan.

The U.S. lawsuit

https://www.digitaltrends.com/business/apple-vs-qualcomm-news/ 5/9
28/10/2017 Apple vs. Qualcomm: Everything you need to know

Apple has followed in the Federal Trade Commissions footsteps by suing Qualcomm for $1 billion for royalties that
they had nothing to do with, according to a report from CNBC.

The Cupertino, California, company claims in the U.S. suit that Qualcomm demanded onerous terms for the use of its
patented technology and even sought to punish Apple for cooperating in a South Korean regulatory probe that dove
into Qualcomms licensing practices practices that are now under the microscope once again.

Apples documents also mentioned that Qualcomm required Apple pay a percentage of the selling price of the iPhone
in return for the use of Qualcomm patents, and demanded that Apple use Qualcomm chips exclusively between 2011
and 2016. While Apple did get so-called quarterly rebates under the agreement, Qualcomm began withholding those
rebates when Apple agreed to work with the Korean Fair Trade Commission. According to the suit, Qualcomm even
told Apple that Apple had forfeited almost $1 billion in rebates by working with regulators.

We are extremely disappointed in the way Qualcomm is conducting its business with us and, unfortunately, after
years of disagreement over what constitutes a fair and reasonable royalty, we have no choice left but to turn to the
courts, Apple said in a statement.

Qualcomm responded to Apples lawsuit by calling its claims baseless.

While we are still in the process of reviewing the complaint in detail, it is quite clear that Apples claims are baseless,
according to Rosenberg. Apple has intentionally mischaracterized our agreements and negotiations, as well as the
enormity and value of the technology we have invented, contributed. and shared with all mobile device makers
through our licensing program.

Rosenberg said Apple has been encouraging regulatory attacks on Qualcomm with meritless claims and by
withholding information. The chipset manufacturer is referring to the Korean Fair Trade Commission, which placed a
hefty $853 million fine on Qualcomm in December for its alleged anticompetitive practices. As with the FTC lawsuit,
Qualcomm said it would fight the fine.

Its possible this could be a long and brutal legal battle, like the one between Apple and Samsung. Well keep this
article updated with more information as we find out more.

Update: Qualcomm wants China to ban the sale of iPhones.

Editor's Recommendations

Apple and Samsung are entering another round in their patent battle
Blackberry settles all lawsuits with Blu, reaches a patent licensing deal
The all-screen Apple iPhone X is here, and its the new iPhone youll want
Apple may develop its own line of ARM chips for use in MacBooks
Apple fails to end lawsuit that claimed it purposely broke FaceTime on iOS 6

RELATED TOPICS: APPLE, LAWSUIT, QUALCOMM, ROYALTIES, APPLE, BUSINESS

DON'T MISS UP NEXT

The best iPhone X screen protectors to protect your new Apple rumored to ditch Touch ID on 2018 iPhone lineup,
Apple iPhone will replace with Face ID

https://www.digitaltrends.com/business/apple-vs-qualcomm-news/ 6/9
28/10/2017 Apple vs. Qualcomm: Everything you need to know

Gratis token de OTN

Empieza operando con
criptomonedas con IQ Option
para conseguir tus tokens gratis!
Open Trading Network

Mophie vs. Belkin vs. RavPower: Who has the best

wireless charging pad?
But with the introduction of wireless charging for iPhones, also comes the influx of different wireless chargers. To
help make it easier, we tested out three different wireless charging pads with the iPhone 8.

Posted 4 days ago By Brenda Stolyar

https://www.digitaltrends.com/business/apple-vs-qualcomm-news/ 7/9
28/10/2017 Apple vs. Qualcomm: Everything you need to know

Apple and Samsung are entering another Screen repairs for the iPhone X priced at
round in their patent battle almost $300 in the U.S. 1:53

Apple and Samsung aren't finished fighting over
patents. A judge granted the latter a retrial that's
scheduled to begin on October 25, and which will
involve damages awarded in a 2014 case between the
two tech giants.
It's here! The Apple iPhone X, a new smartphone made
to commemorate the iPhone's tenth anniversary. The
subject of many rumors over the past months, here are
all the official details about the exciting device.

4 days ago By Kyle Wiggers 1 day ago By Andy Boxall

DEAL

Verizon Fios: the internet of the future

South Korean banks sue online retailer

Newegg for alleged Ponzi scheme
Get it now
Online computer store Newegg has been sued by four BUY NOW SEE DETAILS
South Korean banks for allegedly participating in a
Ponzi scheme that defrauded them out of millions of
dollars. The company is seeking monetary damages
through a jury trial.

5 days ago By Eric Brackett

TRENDING RIGHT NOW

Another day, another ho-hum announcement from Apple

Is the BBC dropping its television and radio divisions?

Wider seats, bigger bathrooms and LED lighting dress up

Apple Pay rolling out to Saks Fifth new Airbus cabins
Avenue, Dick's Sporting Goods, and more
Its official: Tesla will unveil a battery for your home on April
30
Apple Pay is growing rapidly, so we've built a list of all
the vendors, retailers, and companies worldwide that
plan to support Apple's burgeoning mobile payment
platform, or already do.

4 days ago By Digital Trends Staff

https://www.digitaltrends.com/business/apple-vs-qualcomm-news/ 8/9
28/10/2017 Apple vs. Qualcomm: Everything you need to know

Show More

Digital Trends helps readers keep tabs on the fast-paced world of tech with all the latest news, fun product reviews, insightful
editorials, and one-of-a-kind sneak peeks.

MUST READS WHO WE ARE

Best Netflix Movies Best Netflix Original Series About Advertise Contact Us Privacy Policy

Best iPhone Games Best TVs iPhone X Review Terms of Use Corrections Careers

iPhone 8 Plus Review

RELATED COVERAGE ADD US TO YOUR SOCIAL CHANNELS

DT Deals Best Products Giveaways DT Shop

DT Espaol The Manual

SUBSCRIBE TO OUR NEWSLETTER

Copyright 2017 Designtechnica Corporation. All rights reserved.

https://www.digitaltrends.com/business/apple-vs-qualcomm-news/ 9/9