By Asa Fitch 

A U.S. trade judge recommended that some iPhones be barred from import on Tuesday after finding that Apple Inc. violated a patent held by Qualcomm Inc., handing the mobile-phone chip giant a victory in its long-running feud with its erstwhile business partner.

The decision from the U.S. International Trade Commission judge means that Apple, which has its iPhones assembled overseas before sending them to the U.S. and other markets, could be barred from selling iPhones that infringe on a Qualcomm patent covering strategies for conserving power and improving battery life. The judge's two-page order didn't specify which iPhone models it covered.

The decision by ITC administrative law judge MaryJoan McNamara, however, is subject to review by the full six-member ITC as well as by the Trump administration, either of which could change the findings and reverse the recommended ban. Presidents have vetoed ITC moves before, including in 2013 when the Obama administration prevented an ITC ban on the sale of some iPhones and iPads from taking effect after Samsung Electronics Co. won a case there.

Qualcomm long supplied Apple with modem chips, which handle wireless connectivity to mobile networks. But amid a widening battle between the companies, Apple has stopped using Qualcomm modem chips since the iPhone XS's release in 2018.

Qualcomm and Apple representatives didn't immediately respond to requests for comment.

Shares of Qualcomm rose 2.4% in recent trading, while Apple shares were down 0.6%

Qualcomm's complaints against Apple -- including another ITC case where a final decision was expected later Tuesday -- are part of a world-spanning legal battle between the companies. The fight came to a boil in early 2017, when Apple sued Qualcomm in federal court in San Diego, alleging the chip maker extracted extortionate rates for patent licenses by leveraging its dominance in the modem-chip market. That case is set to go to trial next month.

The U.S. Federal Trade Commission also filed suit against Qualcomm in 2017, focusing on the chip company's allegedly monopolistic practices. Qualcomm, which denies the claims and says its pricing practices are fair, has countered by alleging that Apple violated its patents in Germany, China, the U.S. and other jurisdictions. Judge Lucy Koh is expected to make a decision in that case in the coming weeks.

In a separate case brought by Qualcomm, a jury in San Diego this month found that Apple violated the same Qualcomm patent that the ITC found issue with in the case set for a decision later Tuesday. The jury awarded Qualcomm $31 million in damages for Apple's violation of three patents in that case.

Qualcomm had filed both of its ITC cases in 2017, arguing that Apple was violating patents covering techniques to handle data efficiently and extend battery life on mobile phones.

ITC judge Thomas Pender ruled last September that Apple had violated one of those patents, but in a seldom-used exception, he said banning iPhone imports would be counter to the public's interests.

The full six-member commission that oversees the ITC opted in December to review Judge Pender's decision, setting the stage for its expected announcement later Tuesday.

Write to Asa Fitch at asa.fitch@wsj.com

 

(END) Dow Jones Newswires

March 26, 2019 15:36 ET (19:36 GMT)

Copyright (c) 2019 Dow Jones & Company, Inc.
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