UPDATED 13:05 EST / DECEMBER 10 2018

APPS

Handing Qualcomm a victory, court bans sale of certain iPhones in China

A Chinese court has granted Qualcomm Inc. two preliminary injunctions against Apple Inc. that ban the sale of certain iPhone models in the world’s largest smartphone market.

The ruling, which the chipmaker announced today, applies to the iPhone 6S, 6S Plus, 7, 7 Plus, 8, 8 Plus and last year’s X. Apple’s 2018 device lineup is excluded. The court found that the versions of iOS pre-installed in the affected devices infringe upon two Qualcomm software patents: one that relates to photo editing and another describing a method of managing applications on mobile devices.

Dan Rosenberg, Qualcomm’s executive vice president and general counsel, hailed the decision in a statement: “Apple continues to benefit from our intellectual property while refusing to compensate us. These Court orders are further confirmation of the strength of Qualcomm’s vast patent portfolio.”

Wall Street certainly seems to be taking the decision seriously, with Qualcomm’s stock currently up nearly 2 percent on the news. But it remains to be seen if the injunctions will have a tangible impact on Apple’s business in China. All the affected iPhones can be upgraded to the latest version of the company’s operating system, iOS 12, which is excluded from the injunctions.

The impact of the ruling is further mitigated by the fact that the court didn’t place any restrictions on the production or export of the affected devices. In other words, the injunctions shouldn’t cause any disruption to Apple’s Chinese manufacturing operations.

“Qualcomm’s effort to ban our products is another desperate move by a company whose illegal practices are under investigation by regulators around the world,” Apple said in a statement. “All iPhone models remain available for our customers in China. Qualcomm is asserting three patents they had never raised before, including one which has already been invalidated. We will pursue all our legal options through the courts.”

The ruling marks the latest development in the companies’ ongoing legal dispute, which started when the iPhone maker sued Qualcomm last year over what it said are unfair business practices. Apple is accusing the chipmaker of charging excessive licensing fees for its market-leading mobile modems.

Since that initial complaint last year, the dispute is estimated to have spawned more than 100 lawsuits worldwide. Qualcomm Chief Executive Steve Mollenkopf said in late November that the companies are “on the doorstep of a resolution,” but Apple’s lawyers later dismissed the possibility of an imminent settlement. The original 2017 case is on track to go to trial in April.

Photo: williamhook/Flickr

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