Qualcomm ups ante, accuses Apple of infringing six patents in devices

WASHINGTON:Qualcomm Inc. will ask the US International Trade Commission to bar Apple Inc. from selling some iPhones and iPads in the US that use chips made by competitor Intel Corp. on grounds the devices infringe on six Qualcomm patents.

In a request that will broaden its legal battle with Apple, Qualcomm said it will ask the US ITC to ban imports of the infringing Apple devices.

A related lawsuit was filed in federal court in California on Thursday to request monetary damages. Qualcomm, which also supplies chips to Apple, said the six patents help devices perform well without draining the battery.

Apple referred reporters to its earlier comments on the dispute with Qualcomm, which accuse Qualcomm of unfairly imposing what Apple calls a “tax” on Apple devices using Qualcomm chips.

In its complaint to the ITC, Qualcomm asked the body to ban “iPhones that use cellular baseband processors other than those supplied by Qualcomm’s affiliates”. Qualcomm did not name Intel, but Intel began supplying chips for some iPhones starting with the iPhone 7.

Qualcomm has not alleged that Intel chips violate its patents but claims that the way Apple implements them in the iPhone does. Intel declined comment. Stacy Rasgon, an analyst with Bernstein, said ITC cases typically take 16 months to conclude and the case was unlikely to affect Apple’s 10th anniversary iPhone launch expected this fall. “I doubt this puts a lot of immediate pressure on Apple,” Rasgon said.

There has been long-running tension between Qualcomm and Apple over Qualcomm’s practice of taking a cut of the total price of the phone in exchange for “modem” chips that help phones use wireless networks data plans.

The ITC is a popular venue for patent disputes because it handles cases relatively quickly and can more easily bar an infringing product from the US market than federal courts.

Animosity between the two companies burst into the open in January, when the US Federal Trade Commission filed a lawsuit against Qualcomm and accused it of using “anticompetitive” tactics to maintain its monopoly on a key semiconductor used in mobile phones. MUMBAI:Shares of Central Depository Services (India) Ltd (CDSL) surged 122.25% from the issue price of ₹149 per share in a week after their market debut last week on June 30.

CDSL shares rose more than 17% intraday on Friday, closing at ₹331.15 on the National Stock Exchange (NSE). The benchmark Sensex index was up 1.42% while the Nifty gained 1.52% from June 30 to July 7.

During the week, CDSL’s market value rose by ₹726.80 crore to ₹3,460.52 crore, from ₹2,733.72 crore on the listing day.

CDSL, which listed on the National Stock Exchange, saw listing gains of around 75% after opening at ₹250, a 68% premium over its issue price.

The ₹524 crore initial public offering (IPO), which was open between June 19 and 21, was oversubscribed a staggering 170.16 times.

CDSL’s stellar performance beats a bumper rally in Avenue Supermarts Ltd, which listed on March 21. Shares of maverick investor Radhakishan Damanipromoted Avenue Supermarts, operator of supermarket chain D-Mart, have surged around 200% since the day of listing.

Within a week of listing, the Avenue Supermarts stock had jumped 106.25%.

It has maintained its rising trend with a steady flow of volumes.

The stock touched a record high on Friday at ₹910 per share. In terms of market capitalisation, the company is among the 50 most valued.

According to BSE data, Avenue Supermart, with a market value of ₹55,961.66 crore, holds the 48th position in overall ranking on the BSE, ahead of Tata Steel Ltd and Cadila Healthcare Ltd. CDSL is one of India’s two depositories—the other is National Securities Depository Ltd—which hold securities in the electronic form.

Ahead of its IPO, analysts had said the CDSL issue was attractive due to its strong parentage, stable earnings growth, strong margins and decent return on equity of 17% in FY17.

According to Motilal Oswal Securities Ltd, a key positive of CDSL is that it has controlled operating expenses in the last three years, triggering a significant margin expansion of 1,150 basis points to 54% in FY17 from FY15.

CDSL’s revenue grew 17.8% to ₹146 crore over FY15-17 while net profit over the same period grew 24.8% to ₹87 crore.

The debt-free company had cash and investments of ₹551 crore as on March 2017.

The number of CDSL demat accounts have grown at a compound annual growth rate of 8.6% over FY2011-17 to 12.3 million, compared to rival NSDL’s 5.1% over the same period to 15.6 million.

While CDSL has an overall market share of 43% in cumulative demat accounts, on the incremental accounts opened, it had a market share of 59% in FY2017.

The depository has gained market share with higher growth in incremental beneficial owner (BO) accounts over the last three years to 44% in FY17 from 40% in FY14.

Parent BSE Ltd, State Bank of India Ltd (SBI), Bank of Baroda Ltd and The Calcutta Stock Exchange sold around 3.51 crore shares in the public offering. CDSL will not receive any proceeds from the offer.

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