Technology: Qualcomm sues Apple to halt sales of iPhones in world's biggest smartphone market

Qualcomm filed lawsuits against Apple on Friday to halt sales of iPhones in China, one of Apple’s most important markets.

The San Diego-based chipmaker claimed patent infringement against Apple and will seek injunctive relief, according to Bloomberg. The suits were filed in Beijing intellectual property court.

“Apple employs technologies invented by Qualcomm without paying for them,” Christine Trimble, a Qualcomm spokeswoman, told Bloomberg.

Apple said there is no justification for Qualcomm’s claim.

"Apple believes deeply in the value of innovation, and we have always been willing to pay fair and reasonable rates for patents we use. In our many years of ongoing negotiations with Qualcomm, these patents have never been discussed and in fact were only granted in the last few months," the company said in a statement to Bloomberg.

"Regulators around the world have found Qualcomm guilty of abusing their position for years," the statement went on. "This claim is meritless and, like their other courtroom maneuvers, we believe this latest legal effort will fail."

China, with a population of more than 1.4 billion, is the world's biggest smartphone market.

Qualcomm’s business model consists of selling chips used in many smartphones and licensing patents for wireless technology, which are used in most smartphones sold globally. Per The Wall Street Journal, the company’s patent-licensing business accounts for roughly 80 percent of its revenue. Apple accounts for as much as 30 percent of Qualcomm’s per-share earnings, according to Macquarie Capital.

In January, Apple filed lawsuits against Qualcomm for about $1 billion, claiming the San Diego chip firm was charging unfair prices to mine patent royalties and obstruct competitors. Qualcomm leadership criticized the lawsuits during an earnings call earlier this year and said the suits were "without merit," according to ComputerWorld. The company accused Apple of using the suits as a means to reduce the royalties it pays to Qualcomm.

If Qualcomm could strike a blow at Apple, it would have a major impact on the Cupertino-based company, which sees China as a huge market for its products. China was one of Apple’s weak points during its third quarter: Revenue in the region was down 10 percent year-over-year as the iPhone maker faces stiffer competition in the region from brands such as Oppo, Vivo and Huawei.

source: bizjournals.com