Continuing Apple/Qualcomm Saga: Qualcomm plans to petition ITC to ban iPhone imports

[WMGroomAK]

In the continuing legal saga between Apple and Qualcomm, Qualcomm is planning to petition the US International Trade Commission (ITC) to ban imports of iPhones into the US.  

 

http://www.techspot.com/news/69187-qualcomm-reportedly-asks-itc-ban-us-iphone-imports.html

https://www.bloomberg.com/news/articles/2017-05-03/qualcomm-said-to-seek-u-s-import-ban-for-iphones

Quote

Incensed over Apple Inc.’s decision to stop paying it billions of dollars in licensing fees for smartphone chips, Qualcomm Inc. plans to retaliate by asking a U.S. trade agency to ban the imports of iPhones, according to a person familiar with the company’s strategy.

 

Qualcomm is preparing to ask the International Trade Commission to stop the iPhone, which is built in Asia, from entering the country, threatening to block Apple’s iconic product from the American market in advance of its anticipated new model this fall, according to the person, who asked not to be identified because the discussions are private.

 

The ITC is a quasi-judicial agency in Washington that has the power to block the import of goods into the U.S. and processes cases more quickly than federal district courts -- the venue in which the companies are accusing each other of lying, making threats and trying to create an illegal monopoly.

 

I severely doubt that the ITC will grant this, but if so, that could put a dent into potential iPhone sales for Apple as the US supposedly counts for something around 40% of their sales market.  Seems more like a strong arm tactic by Qualcomm to get Apple to strike some kind of court settlement or deal.

[Arcanekitten]

Damn.

 

Don't really have much knownledge in the US blocking effectiveness and how quick is goes and if it even would pass but sure as hell would make a whole bunch of people at Apple mad and the fans following the Apple brand.

Gotta keep an eye open on this topic and see how it advances. 

[Bouzoo]

I have little knowledge of US bureaucracy, but I can't see ITC doing this in any parallel universe.

 

 

Unless this is a conspiracy to start manufacturing iPhones in US. 

 

 

 

[vanished]

Wow that would have an incredible impact.  Can you even imagine!? No iphones in the whole US?  

 

I highly doubt this will pass.

[Mooshi]

Chinese eBay, iPhone 7 labels. Woops, I destroyed their block with little effort.

[PlayStation 2]

Good thing Apple has plans to bring manufacturing over to the United States.

[WMGroomAK]

3 minutes ago, Dan Castellaneta said:

Good thing Apple has plans to bring manufacturing over to the United States.

That $1 billion number is interestingly floating around...  So, Apple sues Qualcomm for $1 billion in order to bring the money into the US for 'investment' of new manufacturing?  While at the same time they are switching over to Intel LTE chips...  Sounds like a really messy divorce for a new lover and they're arguing over alimony payments and restraining orders.

[VerticalDiscussions]

I headed towards Android Authority to check this on their official smartphone app and i read the comments on this particular news.

 

Filled with cancer army 6 year old children talking about Iphone issues rather than focusing on the news... my god.

 

Anyways, this is one of those thing that if happens, Apple being the richest company on earth will mostlikely find a way xD.

 

At least its not Samsung vs Apple again.

[suicidalfranco]

wonder if trump would veto if qualcomm got his way like obama did when samsung managed to get a ban on iphones in the us

[Trixanity]

I'm not a fan of either company but the industry stands to gain big time if Apple wins this case. Qualcomm's business practices aren't that dissimilar to Intel's past endeavors; in fact they might even be worse. So I'm actually kinda hoping Apple lays the smackdown on Qualcomm. Not that Apple are angels but they are the lesser evil in this case.

[SansVarnic]

Now we are going get to have (not in anyway meant to be offensive) the Apple "iBlack Market" for iPhones.  

Gotta have an outlet for the iSheeple to get their device fix. 

 

 

/s

[Belgarathian]

5 hours ago, WMGroomAK said:

That $1 billion number is interestingly floating around...  So, Apple sues Qualcomm for $1 billion in order to bring the money into the US for 'investment' of new manufacturing?  While at the same time they are switching over to Intel LTE chips...  Sounds like a really messy divorce for a new lover and they're arguing over alimony payments and restraining orders.

Yeah, but then Apple still pay Qualcomm royalties on the sale value of the iPhone, even if they use the Intel chips because they have Qualcomm patents in them. 

 

This was the issue if I remember correctly. Qualcomm's royalties are on the sale price of the phone, not the $20 modem they sell Apple. 

[Starelementpoke]

6 hours ago, Ryan_Vickers said:

Wow that would have an incredible impact.  Can you even imagine!? No iphones in the whole US?  

 

I highly doubt this will pass.

This is a wet dream for me.

[laminutederire]

7 hours ago, Belgarathian said:

Yeah, but then Apple still pay Qualcomm royalties on the sale value of the iPhone, even if they use the Intel chips because they have Qualcomm patents in them. 

 

This was the issue if I remember correctly. Qualcomm's royalties are on the sale price of the phone, not the $20 modem they sell Apple. 

If apple signed that in a contract when they bought the modems, they kinda have to pay.

[JunkStar]

Not a snowballs chance i hell that the ITC is going to favor a Chinese company over a beloved American one

[Macimoar]

 

14 hours ago, WMGroomAK said:

That $1 billion number is interestingly floating around...  So, Apple sues Qualcomm for $1 billion in order to bring the money into the US for 'investment' of new manufacturing?  While at the same time they are switching over to Intel LTE chips...  Sounds like a really messy divorce for a new lover and they're arguing over alimony payments and restraining orders.

 

 

8 hours ago, Belgarathian said:

Yeah, but then Apple still pay Qualcomm royalties on the sale value of the iPhone, even if they use the Intel chips because they have Qualcomm patents in them. 

 

This was the issue if I remember correctly. Qualcomm's royalties are on the sale price of the phone, not the $20 modem they sell Apple. 

 

Apple: Hey, Qualcomm, we don't want your modems anymore.

Qualcomm: But... Why?

Apple: It's not you, is me. I found Intel.

Qualcomm: But, we promised...

Apple: Oh, yeah, we want you to give back the money you've been collecting.

Qualcomm: Bitch says what?

Apple: What?

Qualcomm: Fine but I'm not letting you play in the US anymore!

Apple: Hey, you can't do that!

Qualcomm: Oh yeah? Watch me.

 

Tech of our lives will return after these short messages.

[Trixanity]

2 hours ago, JunkStar said:

Not a snowballs chance i hell that the ITC is going to favor a Chinese company over a beloved American one

What Chinese company are we talking about here?

Both companies are very much American. In fact they're 420 (blaze it) miles apart, so that means Tim Cook can drive down there and slap Steven across the face if he wanted to.

[Spenser1337]

So what did Qualcomm do wrong again and why is the world largest company allowed to just stop paying them?

[Trixanity]

12 minutes ago, Spenser1337 said:

So what did Qualcomm do wrong again and why is the world largest company allowed to just stop paying them?

They're doing business like Intel did in the early 2000s. That's the simplest way of describing it.

They make sure everyone pays an exorbitant price for cellular patents, so they're basically holding the entire industry hostage and don't want to license their patents fairly. So you have the choice of using Qualcomm chips and paying a lot of money for it or you can pay them similar amount of money just to use their patents if you want to use other stuff. Either way you get a very bad deal. They also like to make underhanded deals with OEMs to force everyone out of the market. They also made a deal with Samsung in 1993 that would ban Samsung from selling Exynos chips to other companies for 25 years in markets they were competing in (something along those lines).

Probably a lot of other shady stuff that we don't know about.

 

Of course: all of this is allegedly.

[Spenser1337]

Just now, Trixanity said:

They're doing business like Intel did in the early 2000s. That's the simplest way of describing it.

They make sure everyone pays an exorbitant price for cellular patents, so they're basically holding the entire industry hostage and don't want to license their patents fairly. So you have the choice of using Qualcomm chips and paying a lot of money for it or you can pay them similar amount of money just to use their patents if you want to use other stuff. Either way you get a very bad deal. They also like to make underhanded deals with OEMs to force everyone out of the market. They also made a deal with Samsung in 1993 that would ban Samsung from selling Exynos chips to other companies for 25 years in markets they were competing in (something along those lines).

Probably a lot of other shady stuff that we don't know about.

 

Of course: all of this is allegedly.

whats the counter case that Qualcomm is making?

[Trixanity]

Just now, Spenser1337 said:

whats the counter case that Qualcomm is making?

"We did nothing wrong" obviously

In the Apple case, it's basically "you owe us a billion dollars in royalties for using our patents; pay up or be banned from importing phones to the US". With Apple saying "we're not paying so much money. Give us a fair deal and we can play ball".

 

This is one case among many. Qualcomm is facing anti-trust investigations in many areas including the US, the EU, China and South Korea, which was where the Samsung deal was revealed/leaked.

[Spenser1337]

2 minutes ago, Trixanity said:

"We did nothing wrong" obviously

In the Apple case, it's basically "you owe us a billion dollars in royalties for using our patents; pay up or be banned from importing phones to the US". With Apple saying "we're not paying so much money. Give us a fair deal and we can play ball".

 

This is one case among many. Qualcomm is facing anti-trust investigations in many areas including the US, the EU, China and South Korea, which was where the Samsung deal was revealed/leaked.

If apple doesn't like what Qualcomm is giving them why don't they just sever ties with Qualcomm?

Imagine if I worked for a company and I was going to get my paycheck and my boss was like "hey man I know I said I'd give you 15$ an hour but I think we can find a middle ground" after I already worked the entire month to get my check 

[TheUzu]

Apple should get around it the classic way just sell a paper with a joke on it that comes with a free iPhone 7s and Runescape account.

 

Its a fullproof way to get round EULAs and international law.

[Trixanity]

32 minutes ago, Spenser1337 said:

If apple doesn't like what Qualcomm is giving them why don't they just sever ties with Qualcomm?

Imagine if I worked for a company and I was going to get my paycheck and my boss was like "hey man I know I said I'd give you 15$ an hour but I think we can find a middle ground" after I already worked the entire month to get my check 

Because there is no alternative really. They are trying though. They've been contracting Intel but Intel is yet to reach parity with Qualcomm although they're about to if everything pans out but it's uncertain when Intel's new modem will be available. However I do believe Intel is also licensing some cellular patents from Qualcomm, so the unfair licensing terms are still there although I assume Intel will be the one to pony up to Qualcomm if that is the case.

 

For now, Apple is still having an ongoing partnership with Qualcomm and that's what this whole case is about: the money owed for iPhone sales. Apple wants a fair agreement and to only pay royalties for each modem used where Qualcomm feels they're entitled to a % based on phone sales and I guess in addition to the money Apple pays them for each unit. I guess Qualcomm is of the opinion that their product is so valuable to the iPhone 'package' that they are a contributing factor to why people buy iPhones and therefore need royalties based on the entire device. I'd say in reality no one knows that Qualcomm provides modems for Apple and most consumers don't really see the difference between an Intel or Qualcomm modem, so I don't really think Qualcomm have a case for demanding a % of sales based upon the total MSRP of the device.

[laminutederire]

1 hour ago, Trixanity said:

Because there is no alternative really. They are trying though. They've been contracting Intel but Intel is yet to reach parity with Qualcomm although they're about to if everything pans out but it's uncertain when Intel's new modem will be available. However I do believe Intel is also licensing some cellular patents from Qualcomm, so the unfair licensing terms are still there although I assume Intel will be the one to pony up to Qualcomm if that is the case.

 

For now, Apple is still having an ongoing partnership with Qualcomm and that's what this whole case is about: the money owed for iPhone sales. Apple wants a fair agreement and to only pay royalties for each modem used where Qualcomm feels they're entitled to a % based on phone sales and I guess in addition to the money Apple pays them for each unit. I guess Qualcomm is of the opinion that their product is so valuable to the iPhone 'package' that they are a contributing factor to why people buy iPhones and therefore need royalties based on the entire device. I'd say in reality no one knows that Qualcomm provides modems for Apple and most consumers don't really see the difference between an Intel or Qualcomm modem, so I don't really think Qualcomm have a case for demanding a % of sales based upon the total MSRP of the device.

To be fair an iPhone is kinda worthless if you just put what it costs to build. They sell them for 5 to 10 times the producing cost. That's why Qualcomm wants to tax them on the final price, since there is a speculative factor on apple's part and that the modem is necessary for them, they need one for the phone to have that high of a value, therefore Qualcomm could ask a bit more.

But then again patents in the US are weird so they can easily build a large monopoly for a decade with those.