Intel accuses Qualcomm of abusing its mobile chip monopoly

Qualcomm’s dispute with Apple over patents on its chip tech recently took a nasty turn when it asked the US International Trade Commission (ITC) to ban iPhone sales in the US. In response to a request from the ITC, Intel has now made its own statement, accusing Qualcomm of abusing its monopoly position and not licensing “standard-essential” patents at a fair rate as required by law. Of course, if anyone knows how to spot abuse of a chip monopoly, it’s Intel.

The dispute started when Apple sued Qualcomm for “abusing its clout” in the mobile chip industry. It got more combative when Apple began withholding patent royalties via suppliers like Foxconn. It argued that Qualcomm hasn’t licensed its tech under “fair, reasonable and non-discriminatory” terms, claiming that it’s charging five times more than all of its other licensors combined. (The US Federal Trade Commission filed a separate lawsuit against Qualcomm, and both South Korea and China slapped hefty fines on Qualcomm over its trade practices.)

Qualcomm, for its part, said Apple “unilaterally declared the contract terms unacceptable; the same terms that have applied to iPhones and cellular-enabled iPads for a decade.” It then turned around and sued Apple’s suppliers that use Qualcomm patents to claw back the royalties.

Intel got involved in the dispute because its LTE modems, used in some of Apple’s latest iPhones, allegedly infringe on Qualcomm patents. Qualcomm has demanded that Apple replace those parts with chips that use its own baseband modems. (Intel’s LTE modem is reportedly used on GSM-radio iPhone 7 and 7 Plus models from T-Mobile, AT&T and the rest of the world, while Qualcomm radios are used on CDMA models by Sprint and Verizon in the US).

Apple’s iPhone 7 and 7 Plus (AOL)

Intel accused Qualcomm of further anti-competitive practices — namely, offering Apple lower licensing fees for using its chips exclusively. “These arrangements foreclosed rivals like Intel from competing for Apple’s vital business,” it said.

Intel believes that Qualcomm has a more sinister aim with its Apple patent dispute: Crushing Intel in the mobile chip market. “Qualcomm did not initiate this investigation to stop the alleged infringement of its patent rights; rather, its complaint is a transparent effort to stave off lawful competition from Qualcomm’s only remaining rival,” it states. “These arrangements foreclosed rivals like Intel from competing for Apple’s vital business,” it said.

Overall, Intel believes that the ITC needs to consider Qualcomm’s pattern of what it calls “abusive” legal practices. “This twisted use of the Commission’s process is just the latest in a long line of anticompetitive strategies that Qualcomm has used to quash incipient and potential competitors and avoid competition on the merits.”

There’s a lot of irony in this, of course. In the ITC claim, Intel is depicting itself as the poor victim of a mobile chip monopolist, even though it was fined $ 1.4 billion by the EU for abusing its own PC chip monopoly with AMD. Nevertheless, its claim to be an underdog is effectively correct: Next to Qualcomm, Intel has a pitiful share of the mobile chip market. The ITC is set to study the complaint in August, and a trial is expected sometime next year.

Via: CNET

Source: Intel (PDF)

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Qualcomm wants to ban iPhone imports with new Apple complaint

Qualcomm’s latest move in its rapidly escalating legal battle against Apple is bold. It filed a complaint with the US International Trade Commission (ITC), saying that the import and sales of some models of iPhones is “unlawful” and is requesting that the commission “bar importation of those iPhones and other products.” According to Qualcomm, those devices “infringe one or more claims of six Qualcomm patents covering key technologies that enable important features and functions,” and constitute “unlawful and unfair use of Qualcomm’s technology.”

On top of that, Qualcomm is seeking a Cease and Desist Order to bar further sales of “infringing Apple products that have already been imported and to halt the marketing, advertising, demonstration, warehousing of inventory for distribution and use of those imported products in the United States.”

In other words, Qualcomm wants to make it impossible for Apple to sell any iPhones that it believes have used its technology without permission. It’s also seeking “damages and injunctive relief” via a complaint filed in the District Court for the Southern District of California.

According to Qualcomm, the six patents in question “enable high performance in a smartphone while extending battery life.” The company even made an infographic to show you how iPhones use these patented technologies.

It’s not yet clear which generations of the iPhone will be affected, or how the US ITC and the respective courts will rule. Just as Qualcomm countersued Apple earlier this year, it’s certain the iPhone maker will respond soon.

Via: CNBC

Source: Qualcomm

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Qualcomm might try to block iPhone shipments over royalty dispute

The Qualcomm vs. Apple licensing squabble had already gotten messy with lawsuits flying in both directions, but a report by Bloomberg says things could go to the next level soon. That’s because according to sources, Qualcomm plans to ask the ITC to block Apple from importing its phones from where they’re built in Asia to the US, ahead of new devices that we’re anticipating in the fall. We don’t know if it could be successful, although Qualcomm holds a number of patents in the space and Apple stopped making payments while the dispute is ongoing.

Qualcomm has cut its revenue outlook by $ 500 million because of the anticipated lack of licensing fees, so this is no small matter. It claims its patented technology is crucial to the iPhone even as it’s being manufactured by someone else, while Apple disagrees. We don’t know if there’s any chance the ITC will side with Qualcomm and actually ban any devices, but the threat puts billions of dollars in iPhone sales at risk.

Source: Bloomberg

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Qualcomm countersues Apple over iPhone and iPad royalties

For years, Apple and Qualcomm have worked together on technology that’ goes inside your iPhone and iPad. Qualcomm specifically handles a lot of the modem chips that connect devices to cellular or WiFi networks, and are crucial to any mobile hardware. Since Apple needed a lot of chips, Qualcomm supplied them, and everything seemed good — until January when Apple filed a $ 1 billion lawsuit claiming Qualcomm charged royalties on tech it had nothing to do with, and then followed up with two antitrust lawsuits in China. Tonight, Qualcomm has responded with a lawsuit of its own (you can grab the 139 page PDF here), claiming that Apple is in the wrong, and has breached its contract with the company.

Among a number of accusations, Qualcomm chose to highlight charges claiming that Apple “Chose not to utilize the full performance of Qualcomm’s modem chips in its iPhone 7, misrepresented the performance disparity between iPhones using Qualcomm modems and those using competitor-supplied modems; and
Threatened Qualcomm in an attempt to prevent it from making any public comparisons about the superior performance of the Qualcomm-powered iPhones.”

Further along in the document, it also says:

Qualcomm has been relieved of its obligation to make Cooperation Agreement payments to Apple because, among other reasons, Apple has misled government agencies around the world about Qualcomm’s business practices in order to induce regulatory proceedings against Qualcomm. As merely one example, on August 17, 2016, Apple told the Korea Fair Trade Commission (“KFTC”) that “Apple has yet to add a [second chipset] supplier because of Qualcomm’s exclusionary conduct”. But when Apple made that statement to the KFTC, it already had added Intel as a second baseband chip supplier and had purchased Intel chips to incorporate in the iPhone 7, which was only a few weeks away from its September release. Apple already knew that every iPhone 7 offered for sale in Korea would incorporate an Intel chip, not a Qualcomm chip. Apple’s statement to the KFTC was false

Apple started using Intel modems in some versions of the iPhone 7 in 2016. Qualcomm also claims that Apple encouraged regulatory attacks, and interfered with agreements it has with the companies that manufacture iPads and iPhones.

Source: Qualcomm

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