Qualcomm is prepared to up the ante in its patent licensing dispute with Apple and is planning to seek a ban on all imports of iPhones to the US market, according to an unnamed source cited by Bloomberg. The chipmaker is said to be "incensed" over Apple's decision to stop paying licensing fees during the dispute and is now preparing an appeal to the International Trade Commission (ITC) to completely ban imports of the iPhone, which is mostly built by Foxconn in Asia, into the US. The ITC is a quasi-judicial agency in Washington that has the power to block the import of goods into the US and processes cases more quickly than federal district courts, said the report.
However, Apple CEO Tim Cook indicated earlier in the week that he doesn’t believe any agency would block iPhone imports because Qualcomm has yet to offer fair terms, as legally required in patent licensing negotiations. The US market currently accounts for around 40 percent of Apple’s global sales, with the iPhone providing more than 60 percent of the company’s total sales. Qualcomm last week cut its revenue outlook for the quarter by USD 500 million due to the likelihood of not receiving licensing fees from Apple.
The dispute arose after the FTC accused Qualcomm of unfair trade practices regarding its patent licensing, resulting in a lawsuit from Apple on grounds of overcharging and a countersuit from Qualcomm for breach of terms. Apple subsequently announced that it wouldn’t pay the fees until the dispute had been resolved.
