Apple Says Chinese iPhone Ban Will Force Settle Qualcomm Dispute

Qualcomm owns patents on key pieces of mobile technology that Apple and other manufacturers use in their products.

Apple and Qualcomm have also battled over how much Apple owes in licensing fees to Qualcomm.

(Photo: AP)

Tech giant Apple has said that the ban on iPhone’s in China will force it to settle a long withstanding license battle with chipmaker Qualcomm, a Bloomberg report said, adding that it might end up harming the country’s smartphone industry.

The response from Apple comes after a Chinese court said that the company infringed two of Qualcomm’s patents and issued an order against the sale of six older iPhones. 

Apple, according to Bloomberg, argued that this might lead to Qualcomm raising the royalties and fees that is paid to them by smartphone makers.

The dispute is over two Qualcomm patents enabling consumers to format photos and manage phone apps using a touch screen. Apple called it a "desperate move" by Qualcomm and promised to fight it in the courts.

Apple said it filed a request on Monday for the court to reconsider its ruling.

Qualcomm's general counsel, Don Rosenberg, said in a statement that if Apple doesn't heed the orders, it will seek enforcement through tribunals that are part of the Chinese court system.

Although its name isn't widely known outside the technology industry, San Diego-based Qualcomm is one of the world's leading makers of the processors that power many smartphones and other mobile devices.

Qualcomm also owns patents on key pieces of mobile technology that Apple and other manufacturers use in their products, like the Snapdragon processor that powers most Android-powered .

Qualcomm's case against Apple is part of a broader legal strategy it has waged against the iPhone maker around the world, with cases also pending in the United States and Europe.

The two companies have also battled over how much Apple owes in licensing fees to Qualcomm.

Bloomberg also reports that like Apple, Chinese smartphone makers had argued for years that Qualcomm is abusing its position by levying punitive fees. Even after that, most have struck a deal with the company.

Now, Apple argues that China’s latest order might influence a broader global conflict. While the future of iPhones in the country remains hanging, a negative order can hamper Apple’s sales in the world’s biggest market for smartphones – Bloomberg report says that it amounts for about a fifth of Apple’s revenue, at a time when the demand for iPhones is already slowing.

(With inputs from Bloomberg and AP)