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.

Popular Stories

ipad mini 2021 youtube

New Report Reveals When to Expect the iPad Mini 7

Tuesday October 1, 2024 2:09 pm PDT by
Apple is working on a new iPad mini that will "potentially" be released "by the end of 2024," according to a report today from Bloomberg's Mark Gurman. Last month, Gurman reported that Apple had "new iPads in the works," including an upgraded version of the iPad mini. At the time, he said the device was "on deck for Apple's October event" alongside the first M4 Macs. The wording in his...
Generic iOS 18

Apple Releases iOS 18.0.1 With Touch Screen Bug Fix and More

Thursday October 3, 2024 2:22 pm PDT by
Apple today released iOS 18.0.1 and iPadOS 18.0.1, the first updates to the iOS 18 and iPadOS 18 operating systems that debuted earlier in September. iOS 18.0.1 and iPadOS 18.0.1 come two weeks after the launch of iOS 18. The new software can be downloaded on eligible iPhones and iPads over-the-air by going to Settings > General > Software Update. According to Apple's release notes, the...
apple silicon mac lineup wwdc 2022 feature purple

MacBook Pro, iMac, and Redesigned Mac Mini With M4 Chips on Track to Launch 'This Year'

Tuesday October 1, 2024 1:57 pm PDT by
Apple plans to release new MacBook Pro, iMac, and Mac mini models with the M4 series of chips "this year," according to Bloomberg's Mark Gurman. Gurman initially said these Macs would likely be announced during a virtual event this October, but he has been more vague about the timing lately, with wording such as "in the coming weeks" and now merely "this year." In any case, it is clear that...
15 New Things Your iPhone Can Do in iOS 18

15 New Things Your iPhone Can Do in iOS 18.1

Friday September 27, 2024 6:14 am PDT by
Apple is set to release iOS 18.1 in October, bringing the first set of Apple Intelligence features to iPhone 15 Pro and iPhone 16 models. This update marks a significant step forward in Apple's AI integration, offering a new Siri contextually-aware experience and a range of additional capabilities powered by on-device machine learning and large language models. There are a couple of handy new...
macOS Sequoia Night Feature

Apple Releases macOS Sequoia 15.0.1 With Bug Fixes

Thursday October 3, 2024 2:27 pm PDT by
Apple today released macOS Sequoia 15.0.1, the first update for the macOS Sequoia operating system. The 15.0.1 update comes a week after Apple first released macOS Sequoia 15. Mac users can download the ‌macOS Sequoia‌ update by using the Software Update section of System Settings. According to Apple's release notes, macOS Sequoia 15.0.1 fixes a bug that could cause the Messages app...
airpods pro 2 gradient

AirPods Pro 3 Expected Next Year: Here's What We Know

Tuesday October 1, 2024 5:47 am PDT by
Despite being released over two years ago, Apple's AirPods Pro 2 continue to dominate the wireless earbud market. However, with the AirPods Pro 3 expected to launch sometime in 2025, anyone thinking of buying Apple's premium earbuds may be wondering if the next generation is worth holding out for. Apart from their audio and noise-canceling performance, which are generally regarded as...
Generic iOS 18

iOS 18.0.1 Coming Soon: What to Expect for Your iPhone

Wednesday October 2, 2024 5:50 am PDT by
Following the release of iOS 18 for the iPhone last month, Apple is preparing to release iOS 18.0.1 with bug fixes in the near future. We previously reported that Apple has been internally testing iOS 18.0.1, and today a private account on X with a proven track record of sharing iOS-related information said the update will have a build number of 22A3370. We expect iOS 18.0.1 to be a minor ...
Apple Logo

Apple in October: Six New Things to Expect This Month

Tuesday October 1, 2024 11:47 am PDT by
The calendar has turned to October, and it should be another busy month for Apple. Apple is likely to hold another event this month to announce new Macs and iPads, and there are also a couple of iOS 18 updates that are expected to be released soon. Below, we outline six new things to expect from Apple this month. MacBook Pro Apple plans to announce updated 14-inch and 16-inch...
macOS Sequoia Feature

Here Are All the New Features Coming to macOS Sequoia This Month

Thursday October 3, 2024 6:27 am PDT by
‌Apple in October will release macOS Sequoia‌ 15.1, bringing to Macs the first Apple Intelligence features such as Writing Tools, new Siri features, Smart Replies, and more. In addition, macOS 15.1 adds a handful of welcome tweaks and improvements to existing Mac capabilities. Here's what we can expect from the first major update to macOS Sequoia later this month. Note that Apple...

Top Rated Comments

Andres Cantu Avatar
97 months ago
Good luck with getting the iPhone banned in the U.S.
Score: 27 Votes (Like | Disagree)
newyorksole Avatar
97 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
97 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
97 months ago
Good Deity this is getting out of hand.
Score: 8 Votes (Like | Disagree)
konqerror Avatar
97 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
97 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)