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Qualcomm bans iPhone import and sales in China

Dec 10, 2018, 2:30 pm

Qualcomm Incorporated (NASDAQ: QCOM) announced today that they have won their claim in the Fuzhou Intermediate People’s Court in China for two preliminary injunctions against four Chinese subsidiaries of Apple Inc. Qualcomm had filed the case against the subsidiaries back in 2017. This will affect the sales of Apple products overall in general. The court ordered the Chinese subsidiaries of Apple to cease importation, sale and offers for sale in China of the iPhone 6S, iPhone 6S Plus, iPhone 7, iPhone 7 Plus, iPhone 8, iPhone 8 Plus and iPhone X.

This ban was successful because the Chinese subsidiaries were apparently violating two Qualcomm patents. However, SIPO, the Chinese patent office cleared these two patents to be valid. The patents enable the customers to adjust and resize photographs, to change their appearance and to manage applications when viewing or navigating on the phone or working on the phone in general, using a touchscreen. The Fuzhou Intermediate People’s Court previously had banned the chip maker company Micron Technology from importing their products in China.

Qualcomm released an official statement regarding their win over the ban stating that although they care deeply about their customers, the draining of intellectual property was becoming a real concern for them.

We deeply value our relationships with customers, rarely resorting to the courts for assistance, but we also have an abiding belief in the need to protect intellectual property rights. Apple continues to benefit from our intellectual property while refusing to compensate us. These Court orders are further confirmation of the strength of Qualcomm’s vast patent portfolio. – Mr. Don Rosenberg, Executive Vice President and general counsel of Qualcomm Inc.

The ban is just not the only thing that Qualcomm had asked for. Additional actions for other Qualcomm patents are pending in China and other jurisdictions around the world.

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