U.S. trade office will investigate Apple iPhone 7 imports

Reuters

The ITC is picking up on that thread, saying it will investigate whether Apple's mobile devices, like the iPhone 7, and its component parts, like baseband processor modems, infringe on Qualcomm's patents in violation of section 337 of the Tariff Act of 1930.

On July 6 Patently Apple posted a report titled "Qualcomm Files another Patent Infringement Complaint against Apple with International Trade Commission". Things went quiet on that front for a little while but now this week, we have learned that the ITC is going to be launching an investigation into Apple over Qualcomm's claims.

On the other hand, the FTC argued in May that Qualcomm's customers "accept elevated patent royalties they otherwise would refuse" only because they are forced "to negotiate in the shadow of Qualcomm's threat to withhold chips".

Stating that its third quarter results were negatively impacted by Apple's contract manufacturers not paying royalties, chip giant Qualcomm reported its revenue declined 11 per cent over the previous year.

It would not be wrong to say that Qualcomm has won the first round of the battle now that ITC is looking to investigate the matter.

The U.S. International Trade Commission has announced it's launching an official investigation into claims that some of Apple Inc.'s iPhone and iPad devices infringe on technology patents held by Qualcomm Inc.

Читайте также: Police Carry Out Raids Across Sydney, 14 Arrested

Apple, on the other hand, is getting support from other large tech firms, such as Alphabet, Microsoft, Amazon and Facebook, stating that a ban would not be good for customers.

The USITC has identified Apple Inc. of Cupertino, CA, as the respondent in this investigation.

Analysts are watching the ITC case closely because the trade regulator moves more quickly than many courts and could deliver a decision ahead of the pending lawsuits.

In its investigation, the ITC will go through certain mobile electronic devices and radio frequency and processing components. The USITC specifically said it would investigate components used in Apple's iPhone 7 as well as other devices. The ITC also maintained that within the next 45 days, it will finalize the date it plans to end the investigation. Apple pointed to Chief Executive Tim Cook's earlier comments that Qualcomm had not yet offered it "fair and reasonable" licensing terms for Qualcomm's technology.

On Tuesday, Apple shares closed up 0.8% at $160.08.

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