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Apple vs. Qualcomm: iPhone sales halted in Germany

by Milan
December 20, 2018
in News
Image: Apple

Image: Apple

The collaboration with chip manufacturer Qualcomm and Apple was terminated due to a patent war that started in early 2017.

Apple believes that Qualcomm is demanding far too high licensing fees - the semiconductor manufacturer is abusing its market power - according to Apple. Now the chip manufacturer has obtained a ban on the sale of certain iPhones in Germany in the patent dispute against Apple. The reason for this is the infringement of a patent whose technology optimizes the power consumption of the mobile phone chip. According to Qualcomm, Apple cannot change this with an iOS update. Today the Munich Regional Court issued a ruling in favor of the semiconductor manufacturer. According to this, Apple is no longer allowed to sell or market the iPhone 7, iPhone 7+, iPhone 8, iPhone 8+ and iPhone X models in this country. The current iPhone generation is not affected. The ruling is not yet final, but is provisionally enforceable - Apple has already announced that it intends to appeal. Qualcomm can take direct action against Apple if it pays a security deposit of 668.4 million euros.

Such a security deposit is required to ensure that Apple can receive compensation payments that could be incurred if Qualcomm ultimately loses the case in a higher court.

What is provisional enforceability?

Provisional enforceability refers to the possibility of enforcing a court judgment that is not yet final. The conditions under which a judgment can be declared provisionally enforceable arise from Sections 708 ff. of the Code of Civil Procedure (ZPO).

Sales ban effective immediately

Now Qualcomm has done just that. The semiconductor manufacturer has officially issued a sales ban, thereby taking a costly risk itself. Apple has removed the affected iPhone models from its 15 stores in Germany and has therefore temporarily stopped selling them. According to a spokesman for the iGroup, Apple is disappointed with the ruling and will take action against it. In addition, all affected iPhone devices are still available from other retailers and contractual partners in Germany.

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