Qualcomm asks the ITC to ban U.S. imports of the Apple iPhone



Apple and Qualcomm are in the middle of a battle over royalties. Last month, Apple decided to stop paying royalties to the chipmaker until the mess is straightened out. Needless to say, that did not go over terribly well in San Diego where Qualcomm is headquartered. As a result, the latter is asking the International Trade Commission to implement a trade ban on the importation of the Apple iPhone into the U.S. Having a trade ban put into place could jeopardize the U.S. launch of the highly anticipated Apple iPhone 8.

The fight is over patents held by Qualcomm that allow it to charge royalties on smartphones with a high-speed internet connection, even if they don't contain any components with the Qualcomm name on them. Apple says that this is unfair and has been able to extract some measure of revenge by not paying Qualcomm. Now, the latter expects to report lower profits for the second quarter than it previously forecast, all because Apple won't pay.

Apple has filed multiple law suits against Qualcomm over money Apple says it is owed by Qualcomm. The tech titan says that the chip maker has used "exclusionary tactics and excessive royalties" to get to where it is today. Qualcomm last month fired back at Apple with some counterclaims it had added to Apple's complaint. And now Qualcomm has grabbed Apple by the short hairs by threatening to have the ITC ban iPhone imports.

Keep in mind that getting the ITC to order such a ban is a long shot that eventually requires the president to review any Exclusionary Order issued by the agency. In 2013, the ITC ordered a sales ban on the Apple iPhone 3GS, Apple iPhone 4, Apple iPad, Apple iPad 2, and the Apple iPad 3 due to Apple's infringement of certain Samsung patents. However, President Obama vetoed the ban, which was his prerogative as president.

source: Bloomberg

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73 Comments

1. kiko007

Posts: 7520; Member since: Feb 17, 2016

s**t just got real... er.

9. yann

Posts: 614; Member since: Jul 15, 2010

Excessive royalties??? What about Apple excessive royalties? 4-5$US per piece for a cable with lightning port! Why they remove headphone jack? T make more money from royalties for the lightning port. And they are complaining?!? WTF? This can happen only in USA. EVERYONE SUES EVERYONE FOR EVERYTHING!

11. Subie

Posts: 2415; Member since: Aug 01, 2015

You do have a point. Could you imagine if all the companies who manufacture accessories for the lightning port just stopped paying royalties to Apple until they get a better price. Apple would most definitely be complaining to the ITC.

14. kiko007

Posts: 7520; Member since: Feb 17, 2016

Does Apple charge their fee based upon the items' cost? That's what QC is doing. Well, it's more complicated than that , but this is something they've been convicted of before. I honestly wouldn't be surprised if they settled at some point with Apple parting ways with Qaulcomm in the next few years.

20. Subie

Posts: 2415; Member since: Aug 01, 2015

You could be right kiko. Apple could design their own modems or source them all from Intel in the future.

23. AlikMalix unregistered

As a known apple fanboy, I'll tell you, in my opinion qualcom modems are better than intel - they work with more areas than intel which have less flexibility and should be considered for which area of the world the iPhone is built for. I always loved iphones for being versatile world wide, but now unless it's qualcom - with intel you're limited to less bands...

44. Subie

Posts: 2415; Member since: Aug 01, 2015

You're definitely right about those modems. I guess Intel would have to step up their game. I also remember reading that Apple throttled back the Qualcomm modem iPhones to match the speeds of the ones with Intel modems.

57. marorun

Posts: 5029; Member since: Mar 30, 2015

Subie they did throttle the speed yes. but thats did not change the fact thats iphone equiped with qualcomm modem had an overable more stable network connection with higher DB on the connection signal than intel one. So basically only internet speed where throttled.

48. TechieXP1969

Posts: 14967; Member since: Sep 25, 2013

Or maybe Apple should learn how to make their own shyte. That''s the problem. When you don't make anything, you don't get to dictate what someone can charge you, who does make it. That is what negotiations are for. Once you sign and agreement and you exchange money, then you are bound by law to it, no matter how much you like the deal or not. This is where Apple is wrong. Any Judge will ask Apple, did you sign this deal? Apple says yes we did..but...No butts...you signed you are in a contract and as long as Qualcomm is keeping their end, you legally must also. These are like fools who get credit cards and don't read the contract. Many find out the hard way about excessive fees and more. You agreed, you are legally bound...unless said contract contains some illegal-ese.

55. marorun

Posts: 5029; Member since: Mar 30, 2015

Yeah Apple prove how greedy you are go for inferior modem from intel thats are crap compared to qualcomm offering.

24. omnitech

Posts: 1131; Member since: Sep 28, 2016

Still morally wrong on Apple's part. That's basically like saying we can milk our kiko sheep for as much as we want but you are only entitled to a standard essentials cut of the profits, not the raped kiko cut of the profits. It's fair game for Qualcomm to have their cut, it's a team Kiko007 raping.

27. kiko007

Posts: 7520; Member since: Feb 17, 2016

*Uses the word rape twice *Uses my name an excessive amount of times Omnitech Internet predator confirmed...

36. AlikMalix unregistered

Omni tech, your post makes absolutely no sense, neither as analogy or literally. You wanna try this without insulting another PA member? - it will help a little with credibility.

45. omnitech

Posts: 1131; Member since: Sep 28, 2016

It makes perfect sense. It might not make sense to a sheeple because they don't know how to extract proper meaning from a diss just like they can't extract proper value from any product but that is to be expected.

56. marorun

Posts: 5029; Member since: Mar 30, 2015

AlikMalix omni tech post make all the sense in the world. kiko007 is the perfect example of a brainwashed ios user. you on the other hand you are much more logical ( your intel modem comment prove it )

38. vincelongman

Posts: 5745; Member since: Feb 10, 2013

Even if Apple switch completely to Intel modems they would still need to pay Qualcomm for CDMA patents Until Verizon and Sprint eventually switch of their CDMA networks, IIRC that's supposedly schedule for around 2020

46. MrElectrifyer

Posts: 3960; Member since: Oct 21, 2014

"Does Apple charge their fee based upon the items' cost?" Yes they're 100% guilty of the exact same sh*t they're crying about ( https://goo.gl/8XtRFv ), they were even charging 10% of the whole retail price of the accessory if that was more than $10. This is just another hypocritical douchebag move by apple, nothing more.

67. audibot

Posts: 666; Member since: Jan 26, 2017

apple sued Samsung for the rectangular corners and the bounce effect and has won suites where they get a percentage of the phone, not the tech

22. AlikMalix unregistered

Very good point Subie... love your posts...

43. Subie

Posts: 2415; Member since: Aug 01, 2015

Thanks.

16. joey_sfb

Posts: 6794; Member since: Mar 29, 2012

yann, you just touch on one of the best reason to remove a standard headphone jack. Apple do make a lot of money from Made for iPhone initiative. Imagine if manufacturer stop paying their contractual prices. What would apple have done then?

47. TechieXP1969

Posts: 14967; Member since: Sep 25, 2013

No actually it's higher than that. I went to a trade show yesterday and I was viewing some samples of new upcoming products. According to one seller who was offering charging cables with the Lightning connector, she says Apple charges a flat out licensing fee on such at $15 per cable. She said they lower the cost to customers if they buy them in bulk of course. Apple is cryign because the more they ahve to pay out, the less for their own bottom line. Apple has never to say someone is charger to much. They have a right to charge whatever it takes to do business. This is why I say, every OEM needs to stand up and just say...here take your money back, rip all contracts they have signed and let Apple go at it alone. Don't sell them anything. If Apple can;t make it themselves, then to bad...GO OUT OF BUSINESS. Apple is going to make every company hate them to a point, that no matter how much money Apple offers, they will say no. If you "SIGN" a bad deal, it shows you agree with it. Assuming its a bad deal according to you. But when you agree to it, you don't get to sue or b|tch later like a piece of shyte. Apple you signed the deal. It's a business. You accepted the costs and now you don't want to pay? I am sure Trump stupid ass isn't gonna help Qualcomm at all. The best thing Qualcomm can due is, since Apple won't pay they don;'t get any chips and sue the hell out of them for your loses. And speaking of Obama? When Apple was found guilty, he should not have interfere in that court ruling. For that he should be slapped until his eyes fall there sockets.

2. rjqnr121

Posts: 1; Member since: May 03, 2017

another day, another win for samsung

4. kiko007

Posts: 7520; Member since: Feb 17, 2016

What?

30. AmashAziz

Posts: 2934; Member since: Jun 30, 2014

Don't mind him. He is just 1 day old on this site, and thinks following the route of "Samsung is better than Apple no matter what" is the best bet.

49. TechieXP1969

Posts: 14967; Member since: Sep 25, 2013

May not always be the best bet, but its a safer bet!

5. Nathan_ingx

Posts: 4769; Member since: Mar 07, 2012

I'm quite sure Qualcomm doesn't sound or spell the same as Samsung. I want what you're smoking.

58. marorun

Posts: 5029; Member since: Mar 30, 2015

He mean thats if qualcomm dont sell to Apple Samsung will and Samsung modem are superior to intel one.

3. MrElectrifyer

Posts: 3960; Member since: Oct 21, 2014

Wonder if Trump will veto this one too if Qualcomm wins the case...

6. SYSTEM_LORD

Posts: 1168; Member since: Oct 05, 2015

Hope not, as Apple is one of those companies that hides a ton of its money in offshore safe havens. I hope Trump let's it go through and Captain Cook and his band of pirates in Cupertino feel the hurt.

* Some comments have been hidden, because they don't meet the discussions rules.

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