http://www.dailymail.co.uk/sciencetech/article-4474488/Qualcomm-threatens-Apple-iPhone-ban-US.html

Apple could be BANNED from importing iPhones into the US in royalty battle with Qualcomm

  • Apple said it had been overcharged by ‘billions of dollars’ in an ‘illegal scheme’
  • Because Apple stopped paying royalties, Qualcomm could ban iPhone imports 
  • Would stop iPhones from entering the US – months ahead of the iPhone 8 release

The report comes after Apple had revealed it would stop paying royalties to the chip-maker, as the firm believed it had been overcharged by ‘billions of dollars’ in Qualcomm’s ‘illegal scheme’.

The two firms have been in a legal battle since January, which was a result of the FTC accusing Qualcomm of engaging in ‘anticompetitive patent licensing practices’.

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In its ongoing battle with Apple, Qualcomm could soon seek a ban on iPhones (pictured are the iPhone 6 and 6s) being imported to the US from Asia just months before the highly anticipated iPhone 8 is set to be released

In its ongoing battle with Apple, Qualcomm could soon seek a ban on iPhones (pictured are the iPhone 6 and 6s) being imported to the US from Asia just months before the highly anticipated iPhone 8 is set to be released

THE LEGAL DISPUTE

In January, Apple had accused Qualcomm of abusing its market power to demand unfair royalties.

Apple said in the court filing that it has been overcharged ‘billions of dollars’ by its chip-making partner’s ‘illegal scheme.’

The company also claimed Qualcomm owes it a billion dollars, but is refusing to pay due to Apple cooperating with South Korean antitrust regulators looking into the company.

The legal dispute focuses on patents Qualcomm has that gives it the power to charge a percentage of the price of every modern high-speed data-capable smartphone, regardless of whether the devices use its chips.

And Apple believes this system is unfair and the chip-maker used its power to ‘illegally help its semiconductor unit’, Bloomberg reported.

Then in April, Apple announced that it would stop paying Qualcomm for stop paying royalties to the chip-maker.

The news of a ban was revealed by Bloomberg, which spoke with a person familiar with the company’s strategy who said Qualcomm plans to hit Apple hard by asking the International Trade Commission to ban imports of iPhones to the US.

The move comes months after Apple had accused the California chip-maker of abusing its market power to demand unfair royalties.

Apple said in the court filing that it had been overcharged ‘billions of dollars’ by its chip-making partner’s ‘illegal scheme.’

The company also claimed Qualcomm owes it a billion dollars, but is refusing to pay due to Apple cooperating with South Korean antitrust regulators looking into the company.

‘For many years Qualcomm has unfairly insisted on charging royalties for technologies they have nothing to do with,’ Apple said in an email statement.

‘To protect this business scheme Qualcomm has taken increasingly radical steps, most recently withholding nearly $1 billion in payments from Apple as retaliation for responding truthfully to law enforcement agencies investigating them.’

Qualcomm rejected Apple’s claims, saying the iPhone maker ‘intentionally mischaracterized’ agreements as well as the value of the company’s technology.

‘Apple has been actively encouraging regulatory attacks on Qualcomm’s business in various jurisdictions around the world… by misrepresenting facts and withholding information,’ Qualcomm general counsel Don Rosenberg said in a statement.

The legal dispute focuses on patents Qualcomm has that gives it the power to charge a percentage of the price of every modern high-speed data-capable smartphone, regardless of whether the devices use its chips.

 The move comes months after Apple had accused the California chip-maker of abusing its market power to demand unfair royalties in January. Apple said in the court filing that it had been overcharged ‘billions of dollars’ by its chip-making partner’s ‘illegal scheme

And Apple believes this system is unfair and the chip-maker used its power to ‘illegally help its semiconductor unit’, Bloomberg reported.

Because Apple believes the system it is unfair, it has decided to put a stop to all royalties to Qualcomm.

Although banning the iPhone from the US would be a big blow to Apple, if Qualcomm continues down this path for the rest of the year, almost one-third of its licensing revenue will vanish.

And the chip-maker cut its revenue outlook this quarter by $500 million, based on Apple not paying its licensee fees.

The news was of a ban was revealed by Bloomberg , which spoke with a person familiar with the company’s strategy who said Qualcomm plans to hit Apple hard by asking the International Trade Commission to ban imports of iPhones

‘We strongly believe we’re in the right. And I’m sure they believe that they are,’ Apple CEO Time Cook said of the dispute with Qualcomm.

‘And that’s what courts are for. And so we’ll let it go with that.’

In the end, it seems that the real loser would be the consumers.

If the ban is granted, there will be more than 80 million iOS users who will be barred from purchasing the iPhone 8 – which is said to be nothing like Apple has ever release before.

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