Federal Trade Commission

Apple is selling the iPhone 7 and iPhone 8 in Germany again

Posted by | antitrust, Apple, apple inc, China, Europe, Federal Trade Commission, Germany, Intel, iPhone, lawsuit, licensing, Mobile, mobile phones, patent litigation, patents, Qorvo, Qualcomm, smartphone, standards-essential patents | No Comments

Two older iPhone models are back on sale in Apple stores in Germany — but only with Qualcomm chips inside.

The iPhone maker was forced to pull the iPhone 7 and iPhone 8 models from shelves in its online shop and physical stores in the country last month, after chipmaker Qualcomm posted security bonds to enforce a December court injunction it secured via patent litigation.

Apple told Reuters it had “no choice” but to stop using some Intel chips for handsets to be sold in Germany. “Qualcomm is attempting to use injunctions against our products to try to get Apple to succumb to their extortionist demands,” it said in a statement provided to the news agency.

Apple and Qualcomm have been embroiled in an increasingly bitter global legal battle around patents and licensing terms for several years.

The litigation follows Cupertino’s move away from using only Qualcomm’s chips in iPhones after, in 2016, Apple began sourcing modem chips from rival Intel — dropping Qualcomm chips entirely for last year’s iPhone models. Though still using some Qualcomm chips for older iPhone models, as it will now for iPhone 7 and iPhone 8 units headed to Germany.

For these handsets Apple is swapping out Intel modems that contain chips from Qorvo which are subject to the local patent litigation injunction. (The litigation relates to a patented smartphone power management technology.) 

Hence Apple’s Germany webstore is once again listing the two older iPhone models for sale…

Newer iPhones containing Intel chips remain on sale in Germany because they do not containing the same components subject to the patent injunction.

“Intel’s modem products are not involved in this lawsuit and are not subject to this or any other injunction,” Intel’s general counsel, Steven Rodgers, said in a statement to Reuters.

While Apple’s decision to restock its shelves with Qualcomm-only iPhone 7s and 8s represents a momentary victory for Qualcomm, a separate German court tossed another of its patent suits against Apple last month — dismissing it as groundless. (Qualcomm said it would appeal.)

The chipmaker has also been pursing patent litigation against Apple in China, and in December Apple appealed a preliminary injunction banning the import and sales of old iPhone models in the country.

At the same time, Qualcomm and Apple are both waiting the result of an antitrust trial brought against Qualcomm’s licensing terms in the U.S.

Two years ago the FTC filed charges against Qualcomm, accusing the chipmaker of operating a monopoly and forcing exclusivity from Apple while charging “excessive” licensing fees for standards-essential patents.

The case was heard last month and is pending a verdict or settlement.

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German court tosses Qualcomm’s latest iPhone patent suit

Posted by | apple inc, China, Europe, Federal Trade Commission, Germany, Intel, iPhone, lawsuit, Mobile, patent, Qualcomm, smartphones | No Comments

Qualcomm has had a patent lawsuit against Apple dismissed by a court in Mannheim, Germany, as groundless (via Reuters).

The chipmaker had argued Intel -powered iPhones infringed a transistor switch patent it holds. But in an initial verbal decision the court disagreed. Qualcomm has said it will appeal.

In a statement, Don Rosenberg, Qualcomm’s executive VP and general counsel, said: “Apple has a history of infringing our patents. Only last month the Munich Regional Court affirmed the value of another of Qualcomm’s cutting-edge patents against Apple’s infringement and ordered a ban on the import and sale of impacted iPhones in Germany. That decision followed a Court-ordered ban on patent-infringing iPhones in China as well as recognition by an ITC judge that Apple is infringing Qualcomm’s IP. The Mannheim court interpreted one aspect of our patent very narrowly, saying that because a voltage inside a part of an iPhone wasn’t constant the patent wasn’t infringed.  We strongly disagree and will appeal.”

We’ve reached out to Apple for comment. Update: The company told us: “We are happy with the decision and thank the court for their time and diligence.  We regret Qualcomm’s use of the court to divert attention from their illegal behavior that is the subject of multiple lawsuits and proceedings around the world.”

The pair have been embroiled in an increasingly bitter and global legal battle in recent years, as Apple has shifted away from using Qualcomm chips in its devices.

Two years ago the FTC also filed charges against the chipmaker accusing it of anticompetitive tactics in an attempt to maintain a monopoly (Apple is officially cited in the complaint). That trial began early this month.

Cupertino has also filed a billion-dollar royalty lawsuit accusing Qualcomm of charging for patents “they have nothing to do with”.

While the latest court decision in Mannheim has gone in Apple’s favor, a separate ruling in Germany late last year went Qualcomm’s way. And earlier this month Apple was forced to withdraw the iPhone 7 and 8 from its retail stores in Germany, after Qualcomm posted €1.34BN in security bonds to enforce the December court decision — which related to a power management patent.

Although the affected iPhone models remain on sale in Germany via resellers. Apple is also appealing.

Qualcomm also recently secured a preliminary injunction banning the import and sales of some older iPhone models in China. Again, Apple is appealing.

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