Qualcomm seeks iPhone import ban, stepping up patent fight

Qualcomm persuaded a US trade agency to consider banning imports of Apple iPhones that use Intel Corp chips, though the agency appeared to be grappling with ways to forge a compromise that would protect America’s dominance in the next generation of phone technology.

The US International Trade Commission said Wednesday it would take a closer look at a recommendation by a judge in September that an import ban would hurt America’s competitive edge in the development of the next generation of mobile technology, known as 5G. It also will look at the judge’s finding that Apple infringed one of three Qualcomm patents in the case, though confirmed that two other patents weren’t infringed.

Qualcomm and Apple both rose less than 1 per cent in extended trading, building on their gains during the regular session.

The commission said it would issue a final decision February 19. In the meantime, it said it wants answers to the questions of how long it would take Apple to work around the patented battery-saving feature, whether a limited order could be crafted and what national security concerns would be implicated. It also wants more information on Intel’s claim it would exit the market for high-end chips if an import ban is implemented.

In seeking an import ban on certain iPhone models, Qualcomm is using the power of its patents to try to get leverage over Apple in licensing negotiations. Apple, which claims Qualcomm charges too much, has refused to pay anything for more than a year and has cost the chip maker billions of dollars in profit.

The trade case is one of dozens around the world, with much of the focus on the US, Germany and China. On Monday, Qualcomm said a Chinese court issued a sales ban on certain Apple phones in the Asian nation.