According to a recent report in the US computer industry publication "eWeek," the ongoing legal battle between Qualcomm and Apple over technology used in iPhones continues to intensify. Qualcomm has publicly 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 that provides additional context to the situation.
Previously, Qualcomm petitioned the ITC to impose a ban on Apple importing mobile phones that use Intel baseband processors. Qualcomm claims that these phones violate its technology patents. This move has sparked anger among Intel and the CCIA, whose member companies include major tech giants like Google, Facebook, Amazon, Microsoft, Intel, and Samsung. Last week, these members sent letters to the ITC in support of Apple, arguing that a ban on the iPhone would harm consumer interests.
Modems are essential for enabling smartphones, tablets, and other mobile devices to connect to wireless networks. For years, Apple's phones have been equipped with Qualcomm modem chips. However, some versions of the iPhone 7 released last year utilized Intel's modems, while others continued to rely on Qualcomm's technology. In a document submitted to the ITC, Intel emphasized that it is Qualcomm's sole significant competitor in the high-end modem market. Intel argues that Qualcomm's lawsuit against Apple is not about patent infringement but rather an attempt to eliminate its only viable competitor.
Intel further stated that Qualcomm has consistently employed such tactics to eliminate both emerging and potential competitors. The CCIA urged the ITC to reject Qualcomm's request to ban the import of iPhones, asserting that approving such anti-competitive demands would stifle market competition, raise prices, and ultimately harm consumers.
Ed Black, CEO of the CCIA, expressed concern that if the ITC grants Qualcomm's request, it could allow the company to leverage its monopolistic position to suppress Apple further, leading to increased prices for consumer electronics, including the iPhone and other smartphones. He highlighted the importance of maintaining open competition principles for the U.S. economy.
Qualcomm recently countered these accusations in court documents, stating that the CCIA is attempting to mislead the ITC. Additionally, Qualcomm clarified that its request for an import ban on iPhones is unrelated to Intel's competition. The ban targets specific patented technologies used in Intel's iPhones, not the chips themselves. Qualcomm insists that this action will not impact long-term market competition.
Qualcomm emphasized, "As long as Apple does not infringe on our patents, it can freely choose any LTE modem."
The company's unique dual-business model lies at the heart of the controversy: one part involves selling chips to device manufacturers for substantial profits, while the other focuses on collecting technology licensing fees. This model has led to numerous antitrust investigations against Qualcomm. In 2014, to address a Chinese antitrust probe, Qualcomm agreed to pay a $975 million fine and revised its licensing policies.
Apple argued that while intellectual property holds significant value, it should not have to pay for innovations unrelated to its products. The more innovative Apple becomes, the higher the fees Qualcomm charges. Apple stated, "We have always been willing to pay a fair price for the technology our products utilize, but Qualcomm refuses to negotiate reasonable terms, so we are turning to the courts for assistance."
Currently, the ITC is gathering input on Qualcomm's request to ban iPhone imports. Investigations are expected to commence in August and continue into next year. (Compiled by Intern Wang Tian, reviewed by Li Zongze.)
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