International Trade Commision to Investigate Qualcomm’s Claims about Apple iPhone Patents

International Trade Commision to Investigate Qualcomm

Shareholders of Qualcomm (NASDAQ:$QCOM) will be pleased to know that United States trade officials have agreed to investigate the company’s allegations that Apple (NASDAQ:$AAPL) breached on patents with its iPhone 7 and other devices, the U.S. International Trade Commission said on August 8.

Based on what the commission said in a statement, the International Trade Commission plans to make its decision “at the earlier practicable time” and will determine a target date for finishing its investigation within the next 45 days.

The complaint was filed by Qualcomm last month, and asked the U.S. trade regulators to forbid models of the iPhone that contain so-called broadband modem chips that were not made by Qualcomm. For those who don’t know, these chips help phones connect to wireless data networks. Apple started to use broadband modem chips created by Intel Corporation (NASDAQ:$INTC) in the iPhone 7.

It’s important to note that Qualcomm does not believe that Intel chips violate its patents, but rather it is the way that Apple uses them in the iPhone that does.

“We look forward to the International Trade Commission’s expeditious investigation of Apple’s ongoing infringement of our intellectual property and the accelerated relief that the commission can provide,” said Qualcomm executive vice president Don Rosenberg.

Meanwhile, Apple has pointed to Tim Cook’s earlier comments that the San Diego-based company had not offered it “fair and reasonable” licensing terms for their technology.

“I don’t believe anyone is going to decide to enjoin the iPhone based on that,” Cook said in May. “I think that there’s plenty of case law around that subject, but we shall see.”

The takeaway? If you’re interested in the semiconductor industry, keep a close eye on the International Trade Commission case as the trade regulator moves a lot quicker than most courts. As a result, it could deliver a decision ahead of the pending lawsuits.

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