Apple, Qualcomm gird for next phase of patent battle

new york — Split decisions on Tuesday by a US government panel in acrimonious patent disputes between iPhone-maker Apple and chip supplier Qualcomm left their battle lines largely unchanged ahead of a US Federal Trade Commission ruling and a major trial next month.

The International Trade Commission, a government agency empowered to hear disputes over patented technology, issued a final ruling in one case that went in Apple’s favour while an ITC administrative judge made a non-binding recommendation that supported Qualcomm in another.

In both cases Qualcomm sought to have imports of Apple iPhone 7, 8 and X models containing chips made by Intel Corp banned. Because iPhones are made overseas, banning imports would choke Apple’s sales of the phones in the United States.

The two American companies have been locked for two years in a legal dispute in which Apple has accused Qualcomm of unfair patent licensing practices. Qualcomm has in turn accused Apple of patent infringement.

“Qualcomm is using these cases to distract from having to answer for

the real issues, their monopolistic business practices,” Apple said in a statement. After praising the first decision in its favour, Qualcomm said it would seek “reconsideration” of the second decision because it was at odds with a jury trial that the chip supplier won earlier this month in federal court in San Diego, where jurors found Apple infringed three Qualcomm patents.

“The Commission’s decision is inconsistent with the recent unanimous jury verdict finding infringement of the same patent after Apple abandoned its invalidity defence at the end of trial,” Qualcomm said in a statement. “We will seek reconsideration by the Commission in view of the jury verdict.”

Gaston Kroub, a patent lawyer in New York not involved in the cases, said Qualcomm’s strategy at the ITC was to use the threat of an import ban to pressure Apple into reaching a settlement of all patent and antitrust claims between the companies.

“Qualcomm will be happy they got at least something, but at the end of day, with this final determination, Apple will be emboldened to think it can continue to ward off Qualcomm’s attacks,” Kroub said.