patent litigation

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U.S. federal court jury finds Apple infringed three Qualcomm patents

Mobile chipmaker Qualcomm has chalked up another small legal victory against Apple in another patent litigation suit.

A jury in a U.S. federal court in San Diego found Friday that Apple owes Qualcomm about $31M for infringing three patents, per Reuters.

As we reported earlier the San Diego patent suit relates to the power consumption and speed of boot-up times for iPhones sold between mid-2017 and late-2018.

Qualcomm had asked to be awarded up to $1.41 in unpaid patent royalties damages per infringing iPhone sold during the period.

The chipmaker has filed a number of patent suits against the iPhone maker in the U.S., Europe and Asia in recent years. The suits are skirmishes in a bigger battle between the pair over licensing terms that Apple alleges are unfair and illegal.

In a statement on on the San Diego trial outcome Qualcomm executive vice president and general counsel, Don Rosenberg, said:

Today’s unanimous jury verdict is the latest victory in our worldwide patent litigation directed at holding Apple accountable for using our valuable technologies without paying for them. The technologies invented by Qualcomm and others are what made it possible for Apple to enter the market and become so successful so quickly. The three patents found to be infringed in this case represent just a small fraction of Qualcomm’s valuable portfolio of tens of thousands of patents. We are gratified that courts all over the world are rejecting Apple’s strategy of refusing to pay for the use of our IP.

The iPhone models involved in the patent suit are iPhone 7, 7 Plus, 8, 8 Plus and X, which were found to infringe two Qualcomm patents, U.S. Patent No. 8,838,949 (“flashless booting”), and U.S. Patent No. 9,535,490 (data management between the applications processor and the modem); and the iPhone 8, 8 Plus and X which were found to infringe Qualcomm’s U.S. Patent No. 8,633,936 (high performance rich visual graphics with power management).

The patents are not contained in modems and are not standards-essential to cellular devices, Qualcomm said.

Reuters suggests the jury’s damages award could have wider significance if it ends up being factored into the looming billion dollar royalties suit between Apple and Qualcomm — by putting a dollar value on some of the latter’s IP, the San Diego trial potentially bolsters its contention that its chip licensing practices are fair, it said.

At the time of writing it’s not clear whether Apple intends to appeal the outcome of the trial. Reuters reports the iPhone maker declined to comment on that point, after expressing general disappointment with the outcome.

We’ve reached out to Apple for comment.

In a statement provided to the news agency Apple said: “Qualcomm’s ongoing campaign of patent infringement claims is nothing more than an attempt to distract from the larger issues they face with investigations into their business practices in U.S. federal court, and around the world.”

Cupertino filed its billion dollar royalties suit against Qualcomm two years ago.

It has reason to be bullish going into the trial, given a preliminary ruling Thursday — in which a U.S. federal court judge found Qualcomm owes Apple nearly $1BN in patent royalty rebate payments (via CNBC). The trial itself kicks off next month.

The U.S. Federal Trade Commission also filed antitrust charges against Qualcomm in 2017 — accusing the chipmaker of operating a monopoly and forcing exclusivity from Apple while charging “excessive” licensing fees for standards-essential patents.

That trial wrapped up in January and is pending a verdict from Judge Lucy Koh.

At the same time, Qualcomm has also been pursuing several international patent suits against Apple — also with some success.

In December Apple filed an appeal in China to overturn a preliminary ruling that could have blocked iPhone sales in the market.

While in Germany it did pull older iPhone models from sale in its own stores in January. But by February it was selling the two models again — albeit with Qualcomm chips, rather than Intel, inside.

This report was updated with comment from Qualcomm

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Apple is selling the iPhone 7 and iPhone 8 in Germany again

Two older iPhone models are back on sale in Apple stores in Germany — but only with Qualcomm chips inside.

The iPhone maker was forced to pull the iPhone 7 and iPhone 8 models from shelves in its online shop and physical stores in the country last month, after chipmaker Qualcomm posted security bonds to enforce a December court injunction it secured via patent litigation.

Apple told Reuters it had “no choice” but to stop using some Intel chips for handsets to be sold in Germany. “Qualcomm is attempting to use injunctions against our products to try to get Apple to succumb to their extortionist demands,” it said in a statement provided to the news agency.

Apple and Qualcomm have been embroiled in an increasingly bitter global legal battle around patents and licensing terms for several years.

The litigation follows Cupertino’s move away from using only Qualcomm’s chips in iPhones after, in 2016, Apple began sourcing modem chips from rival Intel — dropping Qualcomm chips entirely for last year’s iPhone models. Though still using some Qualcomm chips for older iPhone models, as it will now for iPhone 7 and iPhone 8 units headed to Germany.

For these handsets Apple is swapping out Intel modems that contain chips from Qorvo which are subject to the local patent litigation injunction. (The litigation relates to a patented smartphone power management technology.) 

Hence Apple’s Germany webstore is once again listing the two older iPhone models for sale…

Newer iPhones containing Intel chips remain on sale in Germany because they do not containing the same components subject to the patent injunction.

“Intel’s modem products are not involved in this lawsuit and are not subject to this or any other injunction,” Intel’s general counsel, Steven Rodgers, said in a statement to Reuters.

While Apple’s decision to restock its shelves with Qualcomm-only iPhone 7s and 8s represents a momentary victory for Qualcomm, a separate German court tossed another of its patent suits against Apple last month — dismissing it as groundless. (Qualcomm said it would appeal.)

The chipmaker has also been pursing patent litigation against Apple in China, and in December Apple appealed a preliminary injunction banning the import and sales of old iPhone models in the country.

At the same time, Qualcomm and Apple are both waiting the result of an antitrust trial brought against Qualcomm’s licensing terms in the U.S.

Two years ago the FTC filed charges against Qualcomm, accusing the chipmaker of operating a monopoly and forcing exclusivity from Apple while charging “excessive” licensing fees for standards-essential patents.

The case was heard last month and is pending a verdict or settlement.

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How Tech Can Shut Down Patent Trolls

troll Patent trolls, more formally known as Patent Assertion Entities (PAEs), pose a major threat to American businesses. A study published by the Boston University School of Law revealed that more than six times as many patent lawsuits are filed today as in 1980. More than 10,000 companies have been sued at least once by a PAE, and litigation by PAEs using acquired patents is increasing at an… Read More

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