Chinese court bans iPhone sales in patent dispute

Published December 11, 2018
The move marks the latest in a long-running dispute over patents and royalties between the two California tech giants playing out in courts and administrative bodies worldwide. ─ Reuters/File
The move marks the latest in a long-running dispute over patents and royalties between the two California tech giants playing out in courts and administrative bodies worldwide. ─ Reuters/File

WASHINGTON: A Chinese court ordered a ban in the country on iPhone sales in a patent dispute between US chipmaker Qualcomm and Apple, according to a Qualcomm statement Monday.

The statement said the Fuzhou Intermediate People’s Court had granted Qualcomm’s request for two preliminary injunctions against four subsidiaries of Apple, ordering them to immediately to stop selling the iPhone 6S, iPhone 6S Plus, iPhone 7, iPhone 7 Plus, iPhone 8, iPhone 8 Plus and iPhone X.

The move marked the latest in a long-running dispute over patents and royalties between the two California tech giants playing out in courts and administrative bodies worldwide.

“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,” said Don Rosenberg, Qualcomm executive vice president and general counsel in Monday’s statement. The China case is based on patents which enable consumers to adjust and reformat the size and appearance of photographs, and to manage applications using a touchscreen, Qualcomm said.

An Apple statement to AFP called Qualcomm’s effort a “desperate move by a company whose illegal practices are under investigation by regulators around the world.”

Apple added that Qualcomm “is asserting three patents they had never raised before, including one which has already been invalidated.” Apple said that “all iPhone models remain available for our customers in China,” adding that “we will pursue all our legal options through the courts.”

The court action also comes amid a backdrop of increased trade tensions between Washington and Beijing and the arrest in Canada of a top executive of Chinese tech giant Huawei at the request of US authorities.

Beijing has reacted angrily to the arrest of Huawei chief financial officer Meng Wanzhou, the daughter of the company’s founder, who faces US fraud charges related to alleged sanctions-breaking dealings with Iran.

Apple’s China strategy: China has been an important market for Apple in recent years since China Mobile agreed to begin distributing the smartphones, and the company has opened up a number of Apple retail stores in the court.

Apple’s most recent quarterly report showed it brought in some $11 billion - around 18pc of its total revenues - from “Greater China,” a region which includes Taiwan and Hong Kong.against Apple chief executive Tim Cook has made regular visits to China, and has touted the company’s inroads in the Chinese market as well as its manufacturing there.

Qualcomm, the leading supplier of chips for mobile devices, has been in a prolonged legal battle with Apple in recent years.

Apple has claimed that Qualcomm is abusing its market power over certain mobile chipsets in order to demand unfair royalties, joining a string of antitrust actions against the chipmaker.

Published in Dawn, December 11th, 2018

Follow Dawn Business on Twitter, LinkedIn, Instagram and Facebook for insights on business, finance and tech from Pakistan and across the world.

Opinion

Editorial

Plugging the gap
06 May, 2024

Plugging the gap

IN Pakistan, bias begins at birth for the girl child as discriminatory norms, orthodox attitudes and poverty impede...
Terrains of dread
06 May, 2024

Terrains of dread

KARACHI, with its long history of crime, is well-acquainted with the menace. For some time now, it has witnessed...
Appointment rules
06 May, 2024

Appointment rules

IT appears that, despite years of wrangling over the issue, the country’s top legal minds remain unable to decide...
Hasty transition
Updated 05 May, 2024

Hasty transition

Ostensibly, the aim is to exert greater control over social media and to gain more power to crack down on activists, dissidents and journalists.
One small step…
05 May, 2024

One small step…

THERE is some good news for the nation from the heavens above. On Friday, Pakistan managed to dispatch a lunar...
Not out of the woods
05 May, 2024

Not out of the woods

PAKISTAN’S economic vitals might be showing some signs of improvement, but the country is not yet out of danger....