Chipmaker Wants Making and Selling of iPhones in China Banned

The Verge

The Verge

China is essential to Apple: It is the company's single largest overseas market, with net sales from Greater China accounting for 22.5% of the company's sales in the last fiscal year.

Qualcomm Inc (QCOM.O) confirmed an earlier report that the chipmaker had filed lawsuits in China, seeking to halt the manufacture and sale of Apple Inc's (AAPL.O) iPhones in the country. If successful Apple could be blocked from selling or manufacturing some iPhones in China.

"Effectively - if they get an injunction - you would have a worldwide injunction that would block (Apple) exports from China", said Erick Robinson, director of patent litigation for Beijing East IP and a former director of patents for Qualcomm.

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Apple's shares were marginally up, while Qualcomm shares were marginally down in late-afternoon trading.

First, they say, Apple will likely hit back with an antitrust case against Qualcomm in China, in addition to the ones it has filed elsewhere. Though there aren't any direct benefit to Qualcomm, the company can negotiate with Apple to further extent regarding the Apple's lawsuit against the Qualcomm for a whopping 1 billion dollars. In July, it recorded a comparable claim in the USA, indicating six licenses that it said Apple was disregarding.

"Apple employs technologies invented by Qualcomm without paying for them", a Qualcomm spokesperson told Bloomberg. "Regulators around the world have found Qualcomm guilty of abusing their position for years. This claim is meritless and, like their other courtroom maneuvers, we believe this latest legal effort will fail", said an Apple spokeswoman in Shanghai.

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Apple is now involved in an ongoing legal battle against the company to end the practice of having to pay a small percentage of the total price of each iPhone and iPad sold to Qualcomm over the use of its patents.

Considering these developments, even the Beijing intellectual property court as accepted the Qualcomm's case.

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