Recently, Qualcomm persuaded the US trade department to consider import bans on Apple's iPhone using Intel chips, but the agency seems to be hoping to take compromise measures to protect US companies' dominant position in the next generation of mobile technology.
The US Trade Commission (ITC) said on Wednesday that they will closely follow a judge's September proposal that the import ban will hurt the US's competitive advantage in the development of the next generation of 5G mobile technology. They will also pay attention to a finding by the judge that Apple has infringed one of Qualcomm's three patents. However, the case also confirmed that Apple did not infringe Qualcomm's other two patents.
Both Qualcomm and Apple both rose less than 1% in after-hours trading, and the two companies also closed in red on the day of regular trading.
ITC said it will announce its final ruling on February 19. At the same time, they also want to understand a series of questions, including: How long does it take for Apple to bypass the patented power saving function? Is there a need to issue a limited ban? What national security concerns may exist? They also want to learn more about Intel's statement: If an import ban is imposed, the company will exit the high-end chip market.
In order to impose an import ban on some iPhones, Qualcomm took advantage of the company's patents. Apple believes that Qualcomm's charges are too high, and began to refuse to pay any fees more than a year ago, causing the chip company's profits to be damaged.
Late last night, Qualcomm released a deep water bomb. It is alleged that the Fuzhou Intermediate People's Court of China granted Qualcomm two interim injunctions against Apple's four Chinese subsidiaries, requiring them to immediately stop importing, selling and promising sales of Qualcomm's two patents, including in China. Infringement of authorized products. The products involved include iPhone 6S, iPhone 6S Plus, iPhone 7, iPhone 7 Plus, iPhone 8, iPhone 8 Plus and iPhone X. Apple’s new mobile phone released this fall is not in the lock-up queue.
Qualcomm executive vice president and general counsel Don Rosenberg said that Qualcomm cherishes its relationship with customers and does not tend to seek support from the court through litigation, but Qualcomm also believes in the need to protect intellectual property rights. "Apple has been benefiting from our intellectual property rights but has refused to pay us for this. These court decisions are a further recognition of Qualcomm's extensive patent portfolio strength."
It is understood that the patents in this case enable consumers to adjust and reset the size and appearance of photos and manage applications through the touch screen while browsing, finding and exiting applications on mobile phones.
Qualcomm also said that the judiciary in China and other jurisdictions around the world is currently hearing similar claims for Apple's infringement of other Qualcomm patents.
In this regard, Apple also made a tough response for the first time. "Trying to ban our products is another desperate move by Qualcomm. The company's violations are being investigated by regulators around the world." Apple stressed that Chinese consumers can still buy all models of iPhone products. Qualcomm is proposing three patents that they have never raised before, including a patent that has expired, and Apple will continue to resolve it through legal channels.
If the patent war continues to escalate, Apple will further reduce orders to Qualcomm, which will lead to further decline in Qualcomm's profits.
Knowing that profits will be reduced, why should Qualcomm continue to fight the lawsuit?
Because Qualcomm is eating this bowl of rice, as we all know, the NDRC severely punish Qualcomm because Qualcomm patent licensing fees are too high, and different fees are charged for different mobile phone manufacturers. This fee is still charged according to the mobile phone sales price. Of course, domestic The "level" of the manufacturer is not enough, and Qualcomm naturally receives less.
But Apple is the world's most profitable manufacturer. Qualcomm's patent fees for Apple are also rising, because you earn more from Apple, so I will take more from it, which is why Apple is not willing. In the words of Apple, the same patents are for me. I have to pay more.
And Qualcomm's bite standard is not to be put down. One aspect is that Apple is the main source of profit for Qualcomm. If it is obtained from Apple, the profit will definitely decline.
On the other hand, it is worried that once Apple has opened this head, other manufacturers have followed the example of Apple and demanded that the patent fees be “reasonably and fairlyâ€. Then, Qualcomm can't continue to live. For Qualcomm, selling chips does not make money at all. Almost half of Qualcomm's revenue and profits come from patent licensing. Since patent licensing is so profitable, Qualcomm will naturally not let go.
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