Qualcomm’s $1.5 billion bond halts certain iPhone sales in Germany

05 January, 2019, 23:27 | Author: Brooke Harris
  • The iPhone maker had earlier said it would pull iPhone 7 and 8 models from its 15 retail stores in Germany

On December 20 the District Court of Munich decided Apple had in fact infringed Qualcomm's technology for power savings in the older models and ordered the company to halt all sales in Germany.

Qualcomm's win in Germany came weeks after it secured a court order to ban sales of some iPhone models in China.

The court ruling in Munich in December included the sale of iPhones by third party sellers, such as mobile phone operator shops and other retailers, as well as those sold in Apple's 15 branded outlets. In the aftermath of the ruling, Apple stopped selling the iPhone 7 and iPhone 8 in Apple Stores in Germany.

The bonds are required to cover potential damages incurred by Apple if the decision by the court is overturned or appealed.

As indicated by the court arrange, Apple needs to stop the deal, offer available to be purchased and importation available to be purchased of all encroaching iPhones in Germany.

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The German case is Qualcomm's third major effort to secure a ban on Apple's lucrative iPhones over patent infringement allegations after similar moves in the USA and China, and part of the ongoing global patent skirmish between the two companies. However, at the time, the iPhone 7 and 8 models were still being sold through third-party resellers.

Apple is appealing the decision. Qualcomm said the bond was filed Thursday, formalizing the ban. The trick is in the way the court order is being interpreted.

"These third parties are still free to sell the (affected) iPhones, and they sell the majority of iPhones", Ruting said, adding, "the question of a settlement will be driven by the United States litigation and not the German case". If that happens, Qualcomm's bond will be used to compensate Apple, he said.

"[Qualcomm's suit is] a desperate attempt to distract from the real issues between our companies", Apple said.

Qualcomm's modem technology has been used in several iterations of the iPhone, but since the iPhone 7, Apple has diversified its supplier base, using Intel chips in some handsets. The California-based chip maker has made patent infringement claims against Apple in the USA and China already.

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