Apple has lost the first round in its battle with Qualcomm with the big iPhone maker ordered to pay More $40M for infringing patents with billions now at stake for Apple as new court cases loom.
Qualcomm Inc. won the first U.S. jury trial in its global dispute with Apple with several court cases set to be heard in coming months which if they go against Apple will result in iPhone sales being halted in some markets.
Apple’s fall out with Qualcomm could cost the Company more than dollars as Qualcomm is one of the world’s leading 5G technology Companies with Apple forced to now do business with Intel who does not have the experience necessary to deliver 5G technology for Apple up against Huawei and Qualcomm.
Following the Jury decision on Saturday Qualcomm shares jumped as much as 3.5 percent before finishing up 2.2 percent at the close in New York trading.
Bloomberg said that the outcome boosts Qualcomm’s contention that its technology provides significant value to smartphones beyond the basic ability to connect to a telecommunications network.
The $40M ruling is just the tip of the iceberg for Apple with billions of dollars at stake in upcoming trials, which go to the heart of the licensing dispute between the two tech giants.
Josh Rosenstock, a spokesman for Apple claimed in what was a clear deflection move “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,”, said in a statement.
“While we are disappointed with the outcome, we thank the jury for their service in this case.”
Don Rosenberg, Qualcomm’s general counsel, responded to the Apple statement claiming, “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 disputed patents pertain to technology for graphics processing and battery power conservation, which Qualcomm claims improves the efficiency and reduce the cost of smartphones.
The infringement verdict covers iPhone 7, 8, and X — not the latest models. Qualcomm can now ask the judge for an order to halt further infringement of its patents by Apple. U.S. courts have been unwilling to order outright sales bans and favour financial remedies.
Bloomberg said that while the damages awarded Friday aren’t significant to either company, from Qualcomm’s perspective, valuing just three of its more than 10,000 patents at $1.41 per phone shows the overall worth of its inventions. About 1.4 billion smartphones were sold last year, according to IDC.
The case is Qualcomm Inc. v. Apple Inc., 17-cv-01375, U.S. District Court, Southern District of California (San Diego).
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