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US trade body to probe Apple on Qualcomm s patent claims

09 Aug 2017

San Francisco Aug 9 (IANS) To find a solution to the protracted legal battle between Apple and Qualcomm the US International Trade Commission (ITC) will start an investigation into the chip-maker s claims that Apple violated its patents in devices like the iPhone 7.



According to a report in Forbes on Tuesday Qualcomm asked the ITC to stop further sales of iPhones equipped with cellular baseband modem processors made by rival chip-producer Intel.

The mobile-phone chip-maker claimed that Apple violated potentially six of its patents in how it uses the Intel modems.

"Qualcomm is pleased with the ITC s decision to investigate Apple s unfair trade practices and the unauthorised importation of products using Qualcomm s patents " the report quoted Don Rosenberg General Counsel Qualcomm as saying.

"We look forward to the ITC s expeditious investigation of Apple s ongoing infringement of our intellectual property and the accelerated relief that the Commission can provide " Rosenberg added.

The trade agency said it will make a determination "at the earliest practicable time".

The Computer and Communications Industry Association which represents several tech companies like Facebook Google and Amazon lodged a formal letter with the ITC in July that Qualcomm s proposed import ban on foreign-assembled iPhones using Intel chips would cause "significant shocks to supply" for the wider smartphone market.

It was followed by Intel s standalone declaration supporting Apple. The declaration asserted that Qualcomm maintained a monopoly over the chip market through "anticompetitive practices".

Apple began using Intel cellular modems for some versions of the iPhone 7 launched last year with the remaining supplied by Qualcomm.

Apple continues to reassert claims it made in its lawsuit against Qualcomm saying "the chipmaker supplies Apple with a single connectivity component but for years has been demanding a percentage of the total cost of our products -- effectively taxing Apple s innovation".

The global chip-maker had filed a new patent infringement lawsuit against Apple a few months back and now expects an out of court settlement with the Cupertino-based iPhone maker.

Qualcomm had lodged a complaint with the ITC requesting ban on import and domestic sales of iPhone and iPad models produced outside of the US.

More specifically the chip-maker seeks an exclusion order that applies only to handsets that implement wireless modems made by Intel. Apple first began sourcing Intel modems with the iPhone 7 model last year.

Apple responded to Qualcomm s claims of six infringements and demand for ban on foreign-made Apple devices saying the company had tried to negotiate before suing and that Qualcomm is abusing its position.

Stating that its third quarter results were negatively impacted by Apple s contract manufacturers not paying royalties chip giant Qualcomm reported its revenue declined 11 per cent over the previous year.

--IANS
qd/amit/vt