Qualcomm is preparing to ask the International Trade Commission to formally forbid the Cupertino giant from importing its flagship handset - which is widely known to be mass-produced in Asia - from landing on American soil, Bloomberg reports. This move is likely partially due to the fact that Apple is withholding its royalty payments to Qualcomm while its lawsuit gets underway.
Qualcomm is reportedly turning to the trade commission because it can act faster to block imports than courts, raising pressure on Apple.
In terms of why we're withholding royalties, you can't pay something when there's a dispute about the amount.
The chipmaker claimed the lawsuit was baseless and accused Apple of misrepresenting facts, and countersued the iPhone maker, stating: "Apple wants to leverage its vast power to force Qualcomm into accepting less than fair value for the patented technologies that have led innovation in cellular technology and helped Apple generate more than $760bn (£590bn) in iPhone sales".
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Qualcomm rejected Apple's claims, saying the iPhone maker "intentionally mischaracterized" agreements as well as the value of the company's technology. It also accused Apple of interfering with Qualcomm's deals with suppliers, which also manufactured the company's iPhones and iPads. The iPhone maker has sued Qualcomm for overcharging on royalties, demanding $1bn in compensation.
When quizzed about the possibility of Qualcomm attempting to halt iPhone sales, Cook said: "That's both the price and the business terms". And so I don't believe that a - I don't believe anyone is going to decide to enjoin the iPhone based on that. As a result, QCOM management assumed no royalty payment made from Apple's manufacturers and lowered guidance for F3Q17. There hasn't been a meeting of the minds there. And they do some really great work around standards-essential patents, but it's one small part of what an iPhone is. Slashdot and other sources have reported on a somewhat related feud taking place, which has lead Qualcomm to reach out to the United States based ITC to block the import of iPhones into the US. And I'd like to understand your perspective on whether either of those are real risks to any degree and why would Apple potentially take on those risks just in advance of what will arguably be your most significant and largest product launch in history.
"We strongly believe we're in the right".
Let us know what you think of the whole debacle in the comments.