U.S. Supreme Court rejects Apple's appeal to cancel Qualcomm patents

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U.S. Supreme Court rejects Apple's appeal to cancel Qualcomm patents

WASHINGTON Reuters - The U.S. Supreme Court on Monday refused to hear Apple Inc's attempt to revive an effort to cancel two Qualcomm Inc. smartphone patents despite the global settlement of the underlying dispute between the two tech giants.

The justices turned away Apple's appeal against the lower court ruling that the Cupertino, California-based company lacked standing to pursue the matter because of the settlement. Apple had argued that it should be allowed to appeal because San Diego-based Qualcomm could sue again after the settlement ended.

In 2017, Qualcomm sued Apple in San Diego federal court, arguing that Apple's iPhones, iPads and Apple Watches infringed a variety of Qualcomm mobile technology patents. The case was part of a wider dispute between the rivals.

Apple challenged the validity of two patents at the Patent and Trademark Office's Patent and Trademark Office's Patent Trial and Appeal Board.

The parties settled their dispute in 2019 and signed an agreement worth billions of dollars that allowed Apple to use Qualcomm chips in iPhones. The patent board case allowed for a license to tens of thousands of Qualcomm patents, including the two at issue, as well as a license to the two at issue.

The board ruled in favor of Qualcomm. The U.S. Court of Appeals for the Federal Circuit, which specializes in patent law, dismissed Apple's appeal last year based on the settlement. The Federal Circuit rejected Apple's contention that its royalty payments and risk of being sued justified hearing the case on the merits.

Apple told the Supreme Court that it still faces the risk of litigation after the agreement ends in 2025 or in 2027. Qualcomm has already sued once, hasn't disclaimed its intention to do so again, and has a history of aggressively enforcing its patents, Apple said.

Qualcomm asked the justices to reject the appeal, arguing that Apple had not shown any concrete injury that would give it proper legal standing.

President Joe Biden urged the Supreme Court to reject the appeal in a brief in May.