AAPL Apple Inc

By Asa Fitch and Tripp Mickle 

Apple Inc. and Qualcomm Inc. each notched victories from a U.S. trade body in their yearslong feud over patent licensing, hardening the divide between them ahead of a federal trial slated to begin next month.

Apple netted the more significant victory Tuesday, with a ruling by members of the U.S. International Trade Commission that the iPhone maker didn't violate a patent held by its former chip supplier. That ruling effectively overturned an ITC administrative judge's finding in September that Apple had violated a Qualcomm patent related to power efficiency in mobile phones.

A less-definitive decision came just hours earlier from another ITC administrative judge in a separate patent claim by Qualcomm. In that case, the judge issued an initial finding against Apple and recommended a limited ban on iPhone imports. That recommendation is still subject to review by the ITC -- a six-member group that currently has one open slot -- and potentially by the Trump administration.

A Qualcomm representative didn't immediately provide comment.

An Apple spokesman said the ITC's finding that Qualcomm's patent claim was invalid was an important step to preserving fair competition. He added, "We look forward to detailing the many ways they're harming consumers and stifling innovation when we present our case in San Diego next month."

Shares of Qualcomm ended Tuesday's regular trading session up 2.4%, but slid slightly after hours following news of the second decision. Apple shares ended down 1%, then edged up after hours.

Qualcomm's complaints against Apple to the ITC are part of a world-spanning legal battle between the companies that could determine how much revenue Apple must share from its most important product at a time of slowing global smartphone sales.

The fight started 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.

The legal tug-of-war has cost both sides millions of dollars without producing a clear victor. With neither side ascendant, both are digging in ahead of their trial, set to start 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, who is overseeing the FTC case, is expected to make a decision 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 ITC commissioners ruled on Tuesday. The jury awarded Qualcomm $31 million in damages for Apple's violation of three patents.

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

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.

The ITC administrative judge's decision on Tuesday means Apple may not be out of the woods. Judge MaryJoan McNamara recommended that some iPhones be barred from import, although her two-page order didn't specify which iPhone models it covered.

Even if the ITC commissioners agree with Judge McNamara's decision, the White House could step in before any import ban took place. 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.

Write to Asa Fitch at asa.fitch@wsj.com and Tripp Mickle at Tripp.Mickle@wsj.com

(END) Dow Jones Newswires

March 26, 2019 18:53 ET (22:53 GMT)

Apple (NASDAQ:AAPL)
Gráfico Histórico do Ativo
De Mar 2024 até Abr 2024

Apple (NASDAQ:AAPL)
Gráfico Histórico do Ativo
De Abr 2023 até Abr 2024