Qualcomm pursuing iPhone sales ban in China


According to a Bloomberg report, Qualcomm has escalated its legal battle against Apple by filing multiple new lawsuits in China, seeking a ban on sale and manufacture of iPhones in the country. The product provides nearly two-thirds of Apple's revenue. Apple has accused Qualcomm of failing to pay it $1 billion in rebates that it says it is owed. The Cupertino company has historically used Qualcomm's modems in its phones, though it's recently switched to Intel chips for that objective.

Qualcomm alleges that Apple is using technologies invented by Qualcomm without paying for them. Qualcomm's suit in China is based on three non-standard essential patents that allegedly cover power management and touch-screen technology like Force Touch used in current iPhones.

If granted, that would be a big blow to Apple as the Greater China region was responsible for 22.5% of Apple's revenues in the latest fiscal year.

Qualcomm has countered with a patent suit and argued that Cupertino, California-based Apple encouraged regulators from South Korea to the U.S.to take action against it based on false testimony. 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.

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This is Qualcomm's second attempt to get a ban on iPhone sales.

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.

However, Apple has now cut off those payments costing Qualcomm an estimated $2 billion a year in revenue.