(Reuters) – Mobile phone chip supplier Qualcomm Inc on Friday won a legal victory against iPhone maker Apple Inc, with a jury in federal court in San Diego finding that Apple owes Qualcomm about $31 million for infringing three of its patents.
An Apple company logo is seen behind tree branches outside an Apple store in Beijing, China December 14, 2018. REUTERS/Jason Lee
Qualcomm last year sued Apple alleging it had violated patents related to helping mobile phones get better battery life. During an eight-day trial, Qualcomm asked the jury to award it unpaid patent royalties of up to $1.41 per iPhone that violated the patents.
“The technologies invented by Qualcomm and others are what made it possible for Apple to enter the market and become so successful so quickly,” Don Rosenberg, Qualcomm’s general counsel, said in a statement. “We are gratified that courts all over the world are rejecting Apple’s strategy of refusing to pay for the use of our IP.”
In a statement, Apple said it was disappointed with the outcome.
“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,” Apple said.
The case is part of a series of lawsuits around the world between the companies. Apple has alleged that Qualcomm engaged in illegal patent practices to protect a dominant position in the chip market, and Qualcomm has accused Cupertino, California-based Apple of using its technology without compensation.
To date, Qualcomm has won sales bans on iPhones in Germany and China, though the Chinese ban has not been enforced and Apple has taken moves it believes allow it to resume sales in Germany.
Qualcomm also suffered a setback with U.S. trade regulators who found that some iPhones infringed one of the San Diego-based company’s patents but declined to bar their importation into the United States, citing the damage such a move would inflict on rival Intel Corp.
The companies’ legal battle will reach a crescendo in April, when an antitrust case filed by Apple in early 2017 heads to trial and challenges the foundation of Qualcomm’s business model of licensing its patents to mobile device makers and selling them chips.
The verdict on Friday could come into play in that case because it puts a per-phone dollar figure on some of Qualcomm’s intellectual property. Qualcomm’s patent licensing model relies on charging phone makers a cut of the selling price of the phone, a practice Apple has alleged is unfair and illegal.
During an earlier trial between Qualcomm and the U.S. Federal Trade Commission, Apple executives outlined their company’s extensive negotiations to reduce those license fees to $7.50 per phone for Qualcomm’s patents.
The San Diego jury valued just three of Qualcomm’s patents in the company’s portfolio at $1.41, a figure that the chip supplier believes bolsters its contention that its licensing practices are fair.
“The three patents found to be infringed in this case represent just a small fraction of Qualcomm’s valuable portfolio of tens of thousands of patents,” Rosenberg said in a statement.
The highly technical San Diego case had an unexpected turn last week when a former Apple engineer who was set to testify that he had come up with a key idea for one of Qualcomm’s patents briefly reversed course and said he would not take the stand.
The engineer changed his mind again and did testify. But he stopped short of saying he felt he should have been named an inventor on the patent and he did not have documents to show precisely when he came up with the idea.
Reporting by Stephen Nellis in San Francisco and Jan Wolfe in Washington; Editing by Richard Chang