Qualcomm to Pursue iPhone Import Ban in United States in Ongoing Apple Feud

The legal battle between Qualcomm and Apple is heating up, with Qualcomm planning to seek an import ban that would prevent iPhones from being able to enter the United States, reports Bloomberg. Qualcomm is reportedly "incensed" over Apple's decision to stop paying licensing fees during the dispute and is aiming to retaliate.

Qualcomm is preparing to ask the International Trade Commission to stop the iPhone, which is built in Asia, from entering the country, threatening to block Apple's iconic product from the American market in advance of its anticipated new model this fall, according to the person, who asked not to be identified because the discussions are private.

Qualcomm and Apple have been facing off in an ongoing legal dispute since January that started when the FTC complained that Qualcomm had engaged in anticompetitive patent licensing practices. Shortly after the FTC complaint, Apple sued Qualcomm, accusing the company of charging unfair royalties for "technologies they have nothing to do with" and refusing to pay quarterly rebates.

qualcomm logo
In April, Qualcomm countersued, accusing Apple of breaching licensing agreements, making false statements, and encouraging regulatory attacks against Qualcomm's business in multiple countries. Qualcomm claims Apple "could not have built the incredible iPhone franchise" without relying on Qualcomm's "fundamental cellular technologies."

The lawsuit heated up in late April when Apple stopped making royalty payments to Qualcomm and confirmed it would not continue payments until a court figured out the total amount that was owed. Apple CEO Tim Cook yesterday reiterated that Apple could not pay the fees without the court deciding what amount should be paid due to Qualcomm's refusal to license its patents under FRAND (Fair, Reasonable, and Non-Discriminatory) terms.

In terms of why we're withholding payments, you can't pay something when there's a dispute about how much is needed to be paid. There hasn't been a meeting of the minds there. At this point, we need the courts to decide that. [...]

The reason we are pursuing this is that Qualcomm is trying to charge Apple a percentage of the total of the iPhone value, but their modems/patented technologies are one small part of the iPhone. We don't think that's right, so we're taking a principle stand on it. We strongly believe we're in the right, as they probably think they are.

The United States International Trade Commission could potentially put a stop to iPhone shipments to the United States should the ITC side with Qualcomm. ITC cases are processed more quickly than cases in the federal courts, where this lawsuit will likely be drawn out for years to come.

Top Rated Comments

Andres Cantu Avatar
90 months ago
Good luck with getting the iPhone banned in the U.S.
Score: 27 Votes (Like | Disagree)
newyorksole Avatar
90 months ago
Lolol I'm no expert in this matter, but there's no wayyyy any company is gonna stop Apple from importing iPhones.

Apple has way too many legal resources for that to even get close to happening.
Score: 13 Votes (Like | Disagree)
kdarling Avatar
90 months ago
The last time Apple tried to get out of paying for a FRAND patent because they claimed the price was too high, the ITC banned their devices from import:

ITC Rules Apple Infringed on Samsung Patents, Issues Cease and Desist Order for Older Apple Devices - MacRumors 2013 ('https://www.macrumors.com/2013/06/04/itc-rules-apple-infringed-on-samsung-patents-issues-cease-and-desist-order-for-older-apple-devices/')

And that was with Samsung reportedly asking for "a licensing fee of 2.4% per device sold, which Apple found to be unreasonable." The ITC ruled 1) that royalties based on price were standard with cellular patents, and that 2) it was just an initial offer, which Apple was expected to negotiate down.

Fortunately for Apple, the Obama administration stepped in and vetoed the import ban, saying that a ban could not used for a FRAND situation... unless the licensee continued to avoid actual negotiating.

Not so sure Trump would do the same, if the ITC rules in a similar manner.

Score: 11 Votes (Like | Disagree)
nuckinfutz Avatar
90 months ago
Good Deity this is getting out of hand.
Score: 8 Votes (Like | Disagree)
konqerror Avatar
90 months ago
Good luck with getting the iPhone banned in the U.S.
It did happen. Broadcom got all of Qualcomm's chips banned for import by the ITC during their patent dispute. This meant no phones at all for Verizon and Sprint.

Carriers had to pay license fees directly to Broadcom to get around it. Major factor in Qualcomm's eventual settlement.
http://www.mercurynews.com/2007/08/06/u-s-upholds-import-ban-on-qualcomm-chips/

Because Apple doesn't participate in wireless standards, they have no IP to fight back, so I'd venture to guess that they're in a much weaker position than Qualcomm.
Score: 8 Votes (Like | Disagree)
macfacts Avatar
90 months ago
... If Apple charge $1 for an iPhone, Qualcomm gets, maybe $0.01? If they charge $1,000 why should Qualcomm get $10? ...
Can't have it both ways. When Apple sued Samsung for rounded corners, Apple got a percentage of the entire cost of Samsung's phones sold. Apple didnt just ask for the cost of the plastic phone shell.
[doublepost=1493859841][/doublepost]
no one said it was.
This news story is saying Apple has stopped payments. That sounds like free to me.
Score: 6 Votes (Like | Disagree)

Popular Stories

reset password request iphone

Warning: Apple Users Targeted in Phishing Attack Involving Rapid Password Reset Requests

Tuesday March 26, 2024 4:34 pm PDT by
Phishing attacks taking advantage of Apple's password reset feature have become increasingly common, according to a report from KrebsOnSecurity. Multiple Apple users have been targeted in an attack that bombards them with an endless stream of notifications or multi-factor authentication (MFA) messages in an attempt to cause panic so they'll respond favorably to social engineering. An...
iPhone Home Screen Gradient Blank Spaces 1

Sources: iOS 18 Lets Apps Be Placed Anywhere on Home Screen Grid

Sunday March 24, 2024 1:33 pm PDT by
iOS 18 will give iPhone users greater control over Home Screen app icon arrangement, according to sources familiar with the matter. While app icons will likely remain locked to an invisible grid system on the Home Screen, to ensure there is some uniformity, our sources say that users will be able to arrange icons more freely on iOS 18. For example, we expect that the update will introduce...
iPad Pro 2024 Landscape Camera Feature

New iPad Pro Again Rumored to Feature Landscape Front-Facing Camera

Monday March 25, 2024 5:43 am PDT by
The next-generation iPad Pro will feature a landscape-oriented front-facing camera for the first time, according to the Apple leaker known as "Instant Digital." Instant Digital reiterated the design change earlier today on Weibo with a simple accompanying 2D image. The post reveals that the entire TrueDepth camera array will move to the right side of the device, while the microphone will...
sonoma desktop wwdc

Apple Releases macOS Sonoma 14.4.1 With Fix for USB Hub Bug

Monday March 25, 2024 10:10 am PDT by
Apple today released macOS Sonoma 14.4.1, a minor update for the macOS Sonoma operating system that launched last September. macOS Sonoma 14.4.1 comes three weeks after macOS Sonoma 14.4. The ‌‌‌‌macOS Sonoma‌‌ 14.4‌.1 update can be downloaded for free on all eligible Macs using the Software Update section of System Settings. There's also a macOS 13.6.6 release for those who...
maxresdefault

Apple Announces WWDC 2024 Event for June 10 to 14

Tuesday March 26, 2024 10:02 am PDT by
Apple today announced that its 35th annual Worldwide Developers Conference is set to take place from Monday, June 10 to Friday, June 14. As with WWDC events since 2020, WWDC 2024 will be an online event that is open to all developers at no cost. Subscribe to the MacRumors YouTube channel for more videos. WWDC 2024 will include online sessions and labs so that developers can learn about new...
Generic iOS 18 Feature Purple

iOS 18 Will Finally Bring This Android Feature to iPhone

Monday March 25, 2024 6:42 am PDT by
iOS 18 will allow iPhone users to place app icons anywhere on the Home Screen grid, according to sources familiar with development of the software update. This basic feature has long been available on Android smartphones. While app icons will likely remain locked to an invisible grid system on the Home Screen, our sources said that users will be able to arrange icons more freely on iOS 18....
apple maps 3d feature

Apple Maps May Gain Custom Routes With iOS 18

Tuesday March 26, 2024 3:10 pm PDT by
Apple may be planning to add support for "custom routes" in Apple Maps in iOS 18, according to code reviewed by MacRumors. Apple Maps does not currently offer a way to input self-selected routes, with Maps users limited to Apple's pre-selected options, but that may change in iOS 18. Apple has pushed an iOS 18 file to its maps backend labeled "CustomRouteCreation." While not much is revealed...
iphone reasons to upgrade

Apple Outlines 'Reasons to Upgrade' Your iPhone on New Website

Monday March 25, 2024 12:53 pm PDT by
Apple today added a "Why Upgrade" section to its website, which is aimed at encouraging customers with older iPhones to upgrade to a newer model. The website allows customers to compare the iPhone 11, 11 Pro, 11 Pro Max, 12, 12 mini, 12 Pro, and 12 Pro Max to the iPhone 15, iPhone 15 Plus, iPhone 15 Pro, or iPhone 15 Pro Max. Each comparison shows what new features someone with an older...