Apple vs. Qualcomm: Key Takeaways From the Latest Patent Rulings

(Bloomberg) -- The U.S. International Trade Commission ruled twice in a long-running patent battle between Apple Inc. and Qualcomm Inc.

What happened on Tuesday:

• In the first case, an ITC judge found that Apple infringed a Qualcomm power-saving patent and said she would recommend an import ban on some older models of the iPhone.
• In the second ruling, which came after the market closed, the full commission ruled against Qualcomm. That was a final decision in a separate, earlier case about a different patent.

What you need to know:

Company responses:

• Apple: "We’re pleased the ITC has found Qualcomm’s latest patent claims invalid, it’s another important step to making sure American companies are able to compete fairly in the marketplace. Qualcomm is using these cases to distract from having to answer for the real issues, their monopolistic business practices. They are being investigated by governments around the world for their behavior and we look forward to detailing the many ways they’re harming consumers and stifling innovation when we present our case in San Diego next month.”
• Qualcomm’s General Counsel Don Rosenberg on the earlier ruling: “We appreciate Judge McNamara’s recognition of Apple’s infringement of our hardware patent and that she will be recommending an import ban and cease and desist order.” The company declined to comment on the second decision.

Analyst reactions:

• "No court has actually kept iPhones from hitting the U.S. It’s not to say it won’t happen, but I think it would be difficult," said Shannon Cross of Cross Research. "In these cases, these are also the older phones, which Apple is using to push to more people at lower price points, so a ban would go against what Apple has been pushing."
• "They’ll continue to litigate until something happens in the courtroom which seems to foreshadow a result that one side or another can’t tolerate," said Doug Cawley, a patent lawyer at McKool Smith PC, who has represented clients in suits against Apple and Qualcomm. "Both companies may look at the expenditures, which are easily in the hundreds of millions in attorney’s fees and say maybe we would be better off finding a resolution here."
• The fact that an import ban is still hanging over Apple "gives Qualcomm some settlement leverage over Apple," said Tamlin Bason, an analyst with Bloomberg Intelligence.

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