Qualcomm Accuses Tech Lobby of 'Misdirecting' ITC

Responding to a letter filed by a tech lobby to bar the import of iPhone models not using its modem chips, Qualcomm has said the group was conducting a "coordinated effort aimed at misdirecting" trade regulators. The Computer and Communications Industry Association, which represents several tech companies, lodged a formal letter with the US International Trade Commission (ITC) last week, saying Qualcomm's proposed import ban on foreign-assembled iPhones using Intel chips would cause "significant shocks to supply" for the wider smartphone market, Apple Insider reported on Monday.

It was followed by Intel's standalone declaration, supporting Apple. The declaration asserted that Qualcomm maintained a monopoly over the chip market through "anticompetitive practices". Apple continues to reassert claims it made in its lawsuit against Qualcomm, saying "the chipmaker supplies Apple with a single connectivity component, but for years have been demanding a percentage of the total cost of our products -- effectively taxing Apple's innovation."

The global chip maker had filed a new patent infringement lawsuit against Apple a few months back and now expects 'out of court' settlement with the Cupertino-based iPhone maker. Qualcomm had lodged a complaint with ITC requesting an import and domestic sales ban on iPhone and iPad models produced outside of the US. More specifically, the chipmaker seeks an exclusion order that applies only to handsets that implement wireless modems made by Intel. Apple first began sourcing Intel modems with the iPhone 7 last year.

Earlier this year, Qualcomm filed a complaint with the ITC, accusing Apple's iPhones and iPads of infringing six of its mobile patents. Qualcomm said all iPhones and iPads that contain competing mobile communications chips should be barred from the country. Apple responded to this, saying that the company had tried to negotiate before suing and that Qualcomm is abusing its position. Saying 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.