According to a recent report in the US computing publication "eWeek," the ongoing legal battle between Qualcomm and Apple over technology used in iPhones continues to intensify. As of now, Qualcomm has formally responded in court documents to the Computer and Communications Industry Association (CCIA), accusing the organization of attempting to mislead the US International Trade Commission (ITC).
Attached is an image (source: http://i.bosscdn.com/blog/e6/78/29/c3408ed93b275d7149f952bfe4.jpg) that provides some context.
Previously, Qualcomm had petitioned the ITC to ban Apple from importing mobile phones that utilize Intel baseband processors. Qualcomm claims that these phones violate their own technology patents, which has sparked anger among Intel and the CCIA, whose members include major tech giants like Google, Facebook, Amazon, Microsoft, Intel, and Samsung. These companies wrote letters to the ITC last week in support of Apple, arguing that the proposed iPhone ban by Qualcomm would harm consumer interests.
Modems are essential components that allow smartphones, tablets, and other mobile devices to connect to wireless networks. For years, Apple's phones have been equipped with Qualcomm modem chips. However, last year's iPhone 7 models included Intel modems in certain versions, while others continued to use Qualcomm technology. In documents submitted to the ITC, Intel highlighted that they are Qualcomm's sole significant competitor in the high-end modem market. Intel suggests that Qualcomm's lawsuit against Apple isn't about patent infringement but rather an attempt to eliminate legal competition.
Intel also noted that Qualcomm has historically employed similar strategies to eliminate both existing and potential competitors. The CCIA has urged the ITC to revoke Qualcomm's proposed iPhone import ban, stating that such anti-competitive measures would stifle market competition, drive up prices, and ultimately harm consumers.
Ed Black, CEO of CCIA, emphasized that approving Qualcomm's request would enable the company to leverage its monopolistic position to further suppress Apple, leading to higher prices for consumer electronics like the iPhone. He argued that open competition is vital to the U.S. economy.
Qualcomm, however, recently rebutted CCIA's claims in court documents, asserting that the organization was misleading the ITC. Additionally, Qualcomm clarified that its request for an iPhone import ban is unrelated to Intel's competition. The ban targets patented technologies used in Intel's iPhones, not Intel itself. Qualcomm insisted that this move wouldn't impact long-term competition.
Qualcomm stated, "Apple can use any LTE modem as long as it doesn't infringe on Qualcomm's patents."
Qualcomm's dual business model—selling chips and charging technology licensing fees—has often drawn antitrust scrutiny. In 2014, to resolve a Chinese antitrust investigation, Qualcomm agreed to pay a $975 million fine and adjust its licensing policies.
Apple argued that intellectual property rights are valuable, but they shouldn't have to pay for innovations unrelated to their products. Apple claimed, "We're willing to pay fair prices for the technology our products use, but they refuse to negotiate reasonable terms, so we're turning to the courts."
Currently, the ITC is gathering input on Qualcomm's proposed iPhone import ban. Investigations are expected to start in August and conclude next year. (Compiled by Intern Wang Tian, reviewed by Li Zongze.)
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