Apple Says China iPhone Ban Would Force Settlement With Qualcomm

PACERA selection from the complaint

Apple will update iPhones in China with new software next week that the company says will address the contentious features Qualcomm claims infringe its patents. The software update will be released in an attempt to circumvent the two Qualcomm patents which Apple is guilty of breaching.

Meanwhile, Qualcomm is pushing even harder on Apple, apparently emblazoned by the preliminary injunctions win this week.

Apple will send software updates to several iPhone models in China to remove features disputed by Qualcomm as illegal.

Unsurprisingly Qualcomm disagreed. "Apple continues to disregard and violate the Fuzhou court's orders", Don Rosenberg, general counsel at the chip-maker, argued, suggesting that it wasn't down to Apple to decide what did and did not meet the terms of the court order. "Based on the iPhone models we offer today in China, we believe we are in compliance".

Qualcomm, a leading chip making company on Thursday has urged the Chinese courts to impose a ban on the sales of Apple's new 2018 iPhones models.

Qualcomm has paid a 300 million yuan (US$43.54 million) bond to cover potential damages to Apple from a sales ban and Apple is willing to pay a "counter security" of double that to get the ban lifted, the copy of the reconsideration request shows.

In addition to the Chinese case, it's filed complaints against Apple in Munich and Mannheim, Germany, and lodged another one with the U.S. International Trade Commission in Washington. A new report from Reuters reveals that the same Chinese court has imposed a ban on the latest iPhone XS and iPhone XR as well.

Apple has asked a Chinese court to reconsider the ban.

However, Apple does not mince words when describing how destructive an Apple sales ban in China would be.

"Apple will be forced to settle with the Respondent, causing all mobile phone manufacturers to relapse into the previous unreasonable charging mode and pay high licensing fees, resulting in unrecoverable losses in the downstream market of mobile phones", Apple was quoted as saying by Bloomberg.

"Apple and many other companies, consumers, and government will suffer truly irreparable harm", the company said in the filing.

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