Apple Violated Qualcomm Patent, U.S. Trade Judge Rules -- Update
March 26 2019 - 3:51PM
Dow Jones News
By Asa Fitch
A U.S. trade judge recommended that some iPhones be barred from
import on Tuesday after finding that Apple Inc. violated a patent
held by Qualcomm Inc., handing the mobile-phone chip giant a
victory in its long-running feud with its erstwhile business
partner.
The decision from the U.S. International Trade Commission judge
means that Apple, which has its iPhones assembled overseas before
sending them to the U.S. and other markets, could be barred from
selling iPhones that infringe on a Qualcomm patent covering
strategies for conserving power and improving battery life. The
judge's two-page order didn't specify which iPhone models it
covered.
The decision by ITC administrative law judge MaryJoan McNamara,
however, is subject to review by the full six-member ITC as well as
by the Trump administration, either of which could change the
findings and reverse the recommended ban. Presidents have vetoed
ITC moves before, including in 2013 when the Obama administration
prevented an ITC ban on the sale of some iPhones and iPads from
taking effect after Samsung Electronics Co. won a case there.
Qualcomm long supplied Apple with modem chips, which handle
wireless connectivity to mobile networks. But amid a widening
battle between the companies, Apple has stopped using Qualcomm
modem chips since the iPhone XS's release in 2018.
Qualcomm and Apple representatives didn't immediately respond to
requests for comment.
Shares of Qualcomm rose 2.4% in recent trading, while Apple
shares were down 0.6%
Qualcomm's complaints against Apple -- including another ITC
case where a final decision was expected later Tuesday -- are part
of a world-spanning legal battle between the companies. The fight
came to a boil in early 2017, when Apple sued Qualcomm in federal
court in San Diego, alleging the chip maker extracted extortionate
rates for patent licenses by leveraging its dominance in the
modem-chip market. That case is set to go to trial next month.
The U.S. Federal Trade Commission also filed suit against
Qualcomm in 2017, focusing on the chip company's allegedly
monopolistic practices. Qualcomm, which denies the claims and says
its pricing practices are fair, has countered by alleging that
Apple violated its patents in Germany, China, the U.S. and other
jurisdictions. Judge Lucy Koh is expected to make a decision in
that case in the coming weeks.
In a separate case brought by Qualcomm, a jury in San Diego this
month found that Apple violated the same Qualcomm patent that the
ITC found issue with in the case set for a decision later Tuesday.
The jury awarded Qualcomm $31 million in damages for Apple's
violation of three patents in that case.
Qualcomm had filed both of its ITC cases in 2017, arguing that
Apple was violating patents covering techniques to handle data
efficiently and extend battery life on mobile phones.
ITC judge Thomas Pender ruled last September that Apple had
violated one of those patents, but in a seldom-used exception, he
said banning iPhone imports would be counter to the public's
interests.
The full six-member commission that oversees the ITC opted in
December to review Judge Pender's decision, setting the stage for
its expected announcement later Tuesday.
Write to Asa Fitch at asa.fitch@wsj.com
(END) Dow Jones Newswires
March 26, 2019 15:36 ET (19:36 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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