Qualcomm asks court to block sale, manufacturing of iPhones in China

14 October, 2017, 00:27 | Author: Patsy Dennis
  • Qualcomm is making another move against Apple.                  Justin Sullivan  Getty Images

Apple has accused Qualcomm of failing to pay it $1 billion in rebates that it says it is owed.

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The two companies are months into a legal dispute that centers on Qualcomm's technology licensing business.

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Qualcomm filed the suits in a Beijing intellectual property court, claiming patent infringement and is seeking injunctive relief, Bloomberg said, citing a Qualcomm spokeswoman. Having to compensate for the lost sales and cheap labor would be a big blow to Apple, and according to Walkley, a decision in Qualcomm's favor could fuel layoffs at major manufacturing companies. Qualcomm's suit says that Apple infringed on a trio of patents covering Force Touch and power management. Qualcomm charges a percentage of the price of each handset regardless of whether it includes a chip from the company, and Apple is sick of paying those fees. Spokesperson Josh Rosenstock told Bloomberg that "in our many years of on-going negotations with Qualcomm, these patents have never been discussed". The analyst further notes that a vacuum left by Apple could be filled by Chinese competitors very quickly, and believes that Qualcomm's move is aimed at getting Apple back into negotiations. The San Diego-based company aims to inflict pain on Apple in the world's largest market for smartphones and cut off production in a country where most iPhones are made.

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This legal battle kicked off in January, when Apple filed a lawsuit claiming that Qualcomm was holding payments for ransom. Qualcomm new lawsuit comes after being slapped with a massive $773 million fine by the Taiwan Fair Trade Commission for antitrust violations.

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