Apple Inc’s iPhones should not be banned from the US even though they infringe a patent owned by Qualcomm Inc, a US International Trade Commission (ITC) judge found on Friday.
Judge Thomas Pender found that Apple infringed one of three Qualcomm patents in the case, but declined to recommend the import ban sought by Qualcomm.
The judge’s recommendation “makes no sense,” Qualcomm said.
The judge’s findings are subject to review by the full commission, which has the final say. If the commission goes along, it would eliminate a powerful bargaining chip Qualcomm could use to push Apple into agreeing to pay license fees. The commission is scheduled to make a final decision by January next year.
“Qualcomm has continued to unfairly demand royalties for technologies they have nothing to do with to protect their monopoly,” Apple said in a statement. “We’re glad the ITC stopped Qualcomm’s attempt to damage competition and ultimately harm innovators and US consumers.”
Qualcomm is seeking an import ban of Apple’s iPhones that have chips made by Intel Corp. This is the first of two cases brought by Qualcomm before the trade agency in Washington.
“We are pleased the ALJ [administrative law judge] found infringement of our patented technology, but it makes no sense to then allow infringement to continue by denying an import ban,” Qualcomm general counsel Donald Rosenberg said in a statement.
“That goes against the ITC mandate to protect American innovators by blocking the import of infringing products,” Rosenberg said. “There are many ways Apple could stop infringing our technology without affecting the public interest.”
Qualcomm would look to the full commission decision and pursue more than 40 other patent-infringement cases brought against Apple globally, he said.
The trade agency does not have the authority to force Apple to pay patent royalties. Qualcomm is seeking that in district court, and the judge’s infringement finding, if upheld by the commission, could help the chipmaker there.
Apple contends Qualcomm charges too much for its patents on fundamental telecommunications technology, and has directed its suppliers to stop paying royalties until a better deal can be reached.
The unpaid fees could total US$2.5 billion to US$4.5 billion, according to an analysis by Larson.
In all, there are about 100 legal proceedings worldwide between Apple and Qualcomm, including patent challenges at the US Patent and Trademark Office and lawsuits in China and Germany. Qualcomm also is facing an antitrust lawsuit filed by the US Federal Trade Commission.
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