Qualcomm (QCOM) Sues Apple in China, Seeks iPhone Sales Ban

Bloomberg had earlier reported about the lawsuits in China.

Apple Inc. said chip supplier Qualcomm Inc.'s lawsuit aiming to ban the sale and manufacture of iPhones in China was "meritless" and "will fail". If successful Apple could be blocked from selling or manufacturing some iPhones in China.

When asked to provide some details with regards to the lawsuit, a spokesperson for Qualcomm told Bloomberg that it involved Apple's violation of three patents. "Apple utilizes technologies invented by Qualcomm without paying for them", a Qualcomm representative said. Apple has antitrust suits against Qualcomm in the United States as well as almost a dozen in the United Kingdom, Japan, China and Taiwan alleging that Qualcomm is charging unfair prices for its technology.

Qualcomm countersued Apple later in April in the same federal court, saying Apple had interfered with its business relationships with other tablet and smartphone manufacturers. Though there aren't any direct benefit to Qualcomm, the company can negotiate with Apple to further extent regarding the Apple's lawsuit against the Qualcomm for a whopping 1 billion dollars.

"The consequences are just dire if (an injunction) were to actually happen, the lawyer, who asked not to be named because Qualcomm and Apple were clients of his firm, said".

Apple is now involved in an ongoing legal battle against the company to end the practice of having to pay a small percentage of the total price of each iPhone and iPad sold to Qualcomm over the use of its patents.

The iPhone maker has always been willing to pay fair and reasonable rates for the patents it uses, Apple told Reuters in an email. "Regulators around the world have found Qualcomm guilty of abusing their position for years".

Qualcomm made the filings at the Beijing court on 29 September.

Meanwhile, as for Apple, the Cupertino, California-based technology giant maintained that Qualcomm's claims were without merit.

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