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Apple Wins One Patent Victory Against Qualcomm, Sees Adverse Ruling In Another Case

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Apple Wins One Patent Victory Against Qualcomm, Sees Adverse Ruling In Another Case

U.S. International Trade Commission members said in a Tuesday ruling that Apple Inc. (NASDAQ: AAPL) did not violate a patent controlled by Qualcomm, Inc. (NASDAQ: QCOM).

What Happened

Qualcomm argued in a case brought forward to the ITC in 2017 that Apple violated its patents related to techniques to extending battery life on its phones and handling data efficiently, The Wall Street Journal reported.

The court's ruling in Apple's favor is notable, as it overrules a prior ruling in September that said Apple violated a Qualcomm patent.

In a separate ruling Tuesday, an ITC judge said in initial comments that an import ban of certain iPhone devices made in China will be recommended, according to WSJ. The decision is not final and the initial comments will be discussed by a six-member ITC panel that has one open slot.

Why It's Important

The long-lasting legal feud between the two companies culminated in a decision which may sound "most concerning" to investors but in reality is mostly "noise," Loup Ventures' Gene Munster told Bloomberg TV.

"We are going to see some varying degrees of announcements both for Qualcomm and for Apple, but that doesn't change the trajectory of where the relationship between Apple and Qualcomm is going," the tech venture capitalist said. "And that relationship is moving in a direction where they will eventually be separate." 

What's Next

Tuesday's decision also marks an "irritation" for Apple, but the iPhone maker could take it as an opportunity to accelerate its move to become independent of Qualcomm, Munster said. 

Apple shares were trading 1.53-percent higher at $189.64 at the time of publication Wednesday, while Qualcomm shares were down 1.74 percent at $56.99. 

Related Links:

Sell-Side Stays On Sidelines With Qualcomm, Awaits Resolution Of Licensing Disputes

Kerrisdale: Qualcomm Ruling Could Cut 'Stock Price In Half'

Photo courtesy of Qualcomm. 

Posted-In: Bloomberg TV Gene Munster International Trade Commission iPhone ITC Wall Street JournalNews Media Best of Benzinga

 

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