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14 October 2017, 12:47 | Megan Pierce
Report: Qualcomm files to block iPhone sales and manufacturing in China
Update: Qualcomm'ssuits pertain to three non-standard essential patents and the claims were filed in a Beijing court on September 29. The product provides nearly two-thirds of Apple's revenue. It has since expanded that lawsuit on the heels of a Supreme Court ruling last month, arguing that the license agreements that give Qualcomm a cut of every iPhone manufactured are invalid.
"Apple employs technologies invented by Qualcomm without paying for them", says Christine Trimble, a spokesperson for Qualcomm.
The latest suits come at a crucial time for Apple.
Apple is now rushing to manufacture as many iPhone 8, 8 Plus and iPhone X models during its busiest sales period of the year. Spokesperson Josh Rosenstock told Bloomberg that "in our many years of on-going negotations with Qualcomm, these patents have never been discussed".
It seems exceedingly unlikely that sales of any iPhones will be banned.
Qualcomm's latest move is part of its countersuit agains the antitrust claims Apple filed against it earlier this year. Qualcomm charges a percentage of the price of each handset regardless of whether it includes a chip from the company, and Apple is sick of paying those fees. Qualcomm is also asking USA authorities to ban the import of some versions of the iPhone, arguing they infringe on its patents.
Between the $2 billion in licensing fees Apple is refusing to pay and the $773 million fine from Taiwan's Fair Trade Commission, Qualcomm is now looking at an empty dinner plate.
Soon after its first legal salvo, Apple cut off licensing payments to Qualcomm. Apple shares are up 36 percent this year.
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