Qualcomm Plans Retaliation against Apple and ask the International Trade Commission to Stop iPhone Sales
Last week Patently Apple posted a report titled "Qualcomm Lowers Q3 Fiscal 2017 Guidance due to Apple Holding back Royalty Payments." Qualcomm's legal team hit the roof with that move from Apple and will now retaliate by asking a U.S. trade agency to ban the imports of iPhones, according to a new Bloomberg report.
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.
Kevin Cassidy, an analyst at Stifel Nicolaus told Bloomberg that "They have to do something. The bigger risk is other companies or countries say we're not going to pay, too. That's the danger of letting Apple get away with this."
Apple Chief Executive Officer Tim Cook said when asked about the possibility the chipmaker could try to halt iPhone sales anywhere in the world: "Qualcomm hasn't offered fair terms as required under rules governing the licensing of patents. That's both the price and the business terms. Qualcomm has not made such an offer to Apple. I don't believe anyone's going to decide to enjoin the iPhone based on that. There's plenty of case law around that subject. But we shall see."
Cook added that "We strongly believe we're in the right. And I'm sure they believe that they are. And that's what courts are for. And so we'll let it go with that."
For more on this story, read the full Bloomberg report here.