Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-casd-3_17-cv-00108/USCOURTS-casd-3_17-cv-00108-0/pdf.json

Nature of Suit Code: 830
Nature of Suit: Patent
Cause of Action: 35:0271 Patent Infringement

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UNITED STATES DISTRICT COURT

SOUTHERN DISTRICT OF CALIFORNIA

APPLE INC.,

Plaintiff,

vs.

QUALCOMM INCORPORATED,

Defendant.

Case No. 3:17-cv-00108-GPC-MDD

ORDER DENYING ANTI-SUIT 

INJUNCTION

(Redacted version) 

ECF No. 92-1

QUALCOMM INCORPORATED,

Counterclaim-Plaintiff,

v.

APPLE INC.,

 Counterclaim-Defendant.

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Before the Court is a motion for anti-suit injunction filed by Defendant and 

Counterclaim-Plaintiff Qualcomm Incorporated (“Qualcomm”). Dkt. No. 92-1. The 

motion has been fully briefed. Plaintiff and Counter-Defendant Apple Inc. (“Apple”) 

filed an opposition on August 8, 2017 and Qualcomm filed a reply on August 15, 2017. 

Dkt. Nos. 108, 114. The Court heard oral argument on August 18, 2017. Dkt. No. 118. 

Upon review of the moving papers, the exhibits attached in support thereof, the 

applicable law, and for the following reasons, the Court DENIES Qualcomm’s motion 

for anti-suit injunction. 

I. INTRODUCTION

The underlying dispute arises out of what the parties refer to as the “FRAND 

commitment” or the “FRAND Bargain.” In response to the globalization of the 

telecommunications industry, key players in the industry have formed standard-setting 

organizations (“SSOs”) or standard-development organizations (“SDOs”) to facilitate

worldwide connectivity. The European Telecommunications Standards Institute 

(“ETSI”) is one of the most important and influential SSOs in the cellular 

communications industry. Both Apple and Qualcomm are members of ETSI, along with 

eight hundred members from sixty-six other countries. 

Before promulgating standards, ETSI requires — as do other SSOs — that any 

putative owner of a standard-essential patent (“SEP”) agree to make licenses available on 

“fair, reasonable and non-discriminatory” (i.e., FRAND) terms to willing licensees. SEP 

holders make this prohibitory promise with the understanding that they are entitled to 

seek royalties from any and all entities that want to practice the standard. The “FRAND 

commitment” or “FRAND bargain,” therefore, is a contractual obligation between the 

SEP holder and the SSO. Here, the contractual obligation is between Qualcomm and 

ETSI. 

Qualcomm holds thousands of FRAND-encumbered SEPs that comprise ETSI’s

3G/UMTS and 4G/LTE cellular communication standards. Apple’s iPhones and other 

cellular devices practice the 3G and 4G standards. For years, Apple has practiced 

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Qualcomm’s SEPs by relying on a license agreement between Qualcomm and the 

manufacturers who build Apple’s iPhones and iPads (the “Contract Manufacturers”).

1

 

Apple and Qualcomm have never executed a licensing agreement. 

Since the introduction of the iPhone in 2007, Apple and Qualcomm have 

periodically engaged in negotiations regarding a direct license for Qualcomm’s cellular 

SEP portfolio. The most recent took place between 2015 and 2017. In June 2016, 

Qualcomm offered Apple a license to Qualcomm’s Chinese 3G and 4G cellular SEPs. A 

month later, and pursuant to Qualcomm’s oral representations, Qualcomm offered Apple 

a license to Qualcomm’s “rest-of-world” patent portfolio. Apple rejected both offers on 

the grounds that they were non-FRAND. Not long thereafter, Apple filed the instant suit.

II. BACKGROUND 

A. Standard-setting organizations & intellectual property law 

Standard-setting organizations are industry groups that create common platforms 

for the practice of modern technologies including telephones, the Internet, and other 

electronics. See Microsoft Corp. v. Motorola, Inc., 871 F. Supp. 2d 1089, 1092 (W.D. 

Wash. 2012); see also Mark A. Lemley, Intellectual Property Rights and Standard–

Setting Organizations, 90 Calif. L. Rev. 1889, 1892-93 (2002) (positively cited in 

Microsoft Corp. v. Motorola, Inc., 696 F.3d 872, 875 (9th Cir. 2012)). Through 

standardization, manufacturers from across the world can create products that interface 

with one another. See Microsoft, 871 F. Supp. 2d at 1092. Standardization benefits the 

consuming public by ensuring interoperability, lower product costs, and increased price 

competition. Microsoft, 696 F.3d at 876 (citing Apple, Inc. v. Motorola Mobility, Inc., 

2011 WL 7324582, *1 (W.D. Wis. June 7, 2011)). 

 

1 Qualcomm has sued the Contract Manufacturers in a related action for breach of their license 

agreements. Qualcomm Inc. v. Compal Electronics Inc. et al., 3:17-cv-01010-GPC-MDD (complaint 

filed May 17, 2017). The two cases were consolidated at the Court’s August 18, 2017 hearing. Dkt. No. 

118. 

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Yet as countless authorities have recognized, this private standardization process 

becomes complicated when the common technological platform is made up of intellectual 

property owned by different companies. See Motorola, 696 F.3d at 876. Entities that 

own patented technology essential to the operation of a technological standard are said to 

own standard-essential patents, or SEPs. In theory, SEP holders wield tremendous 

control over standards because, as patent holders, they have the right to exclude others

from practicing their intellectual property. See Lemley, Intellectual Property Rights, at 

1901. “As a result, standards threaten to endow holders of standard-essential patents with 

disproportionate market power.” Microsoft, 696 F.3d at 876. To avoid this mischief and 

“to reduce the likelihood that owners of essential patents will abuse their market power, 

many standards setting organizations,” including ETSI, “have adopted rules related to the 

disclosure and licensing of essential patents.” Microsoft, 871 F. Supp. 2d at 1093. 

To that end, ETSI requires all SEP participants to comply with the Intellectual 

Property Rights (“IPR”) Policy.2 The IPR policy requires members to disclose 

potentially standard-essential patents in a timely fashion. Id. § 4.1. More importantly, 

the IPR policy also obligates SEP holders to make a written commitment that they will 

grant irrevocable licenses to any willing licensee on fair, reasonable, and 

nondiscriminatory terms — that is, FRAND terms. Id. § 6.1. In the event an SEP owner 

is not prepared to license its intellectual property on FRAND terms, the IPR policy 

dictates that the governing body shall search for alternative technology to incorporate into 

the standard. Id. § 8.1.1. 

By requiring all SEP holders to adhere to the FRAND commitment, ETSI and 

other SSOs mitigate the anticompetitive effects flowing from standardization. See 

 

2

See ETSI, ETSI Intellectual Property Rights Policy, Annex 6, (April 5, 2017), 

http://www.etsi.org/website/document/legal/etsi_ipr-policy.pdf. Apple cites to the IPR Policy in its 

complaint. See, e.g., FAC ¶ 45, Dkt. No. 83 at 22. Qualcomm, in its answer, “refers [the Court] to 

ETSI’s Intellectual Property Rights (“IPR”) Policy for its contents.” Answer to FAC ¶ 45, Dkt. No. 97 

at 10. Given Qualcomm’s referral, the Court finds it appropriate to take judicial notice of the provisions 

included in the IPR policy. 

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Microsoft, 696 F.3d at 876. For if there was no FRAND commitment, then “once a 

standard has gained such widespread acceptance that compliance is effectively required 

to compete in a particular market, anyone holding a standard-essential patent could 

extract unreasonably high royalties from suppliers of standard-compliant products and 

services.” Id. (quoting Mark A. Lemley, Ten Things to Do About Patent Holdup of 

Standards (And One Not to), 48 B.C. L. Rev. 149 (2007)). This potential abuse is welldocumented in judicial opinions discussing FRAND and is often referred to as “patent 

hold-up.” See id.; see also Ericsson, Inc. v. D-Link Sys., Inc., 773 F.3d 1201, 1209 (Fed. 

Cir. 2014) (“Patent hold-up exists when the holder of a SEP demands excessive royalties 

after companies are locked into using a standard.”). The FRAND commitment, therefore, 

is designed to prevent patent holdup. See Microsoft, 696 F.3d at 876. 

Qualcomm holds SEPs that are integral to practicing ETSI’s 3G and 4G standards. 

FACC (“First Amended Counterclaims”) ¶ 96, Dkt. No. 70 at 78. Qualcomm recognizes 

that those SEPs are encumbered by Qualcomm’s FRAND commitment to ETSI. Id. 

Qualcomm also acknowledges that its FRAND commitment to ETSI has created a 

“contractual obligation” between the two parties. Id. 

B. U.S. action 

On January 20, 2017, Apple filed suit against Qualcomm. Dkt. No. 1. Qualcomm 

filed an answer and counterclaims on April 10, 2017 and amended counterclaims on May 

24, 2017. Dkt. Nos. 61, 70. Apple filed a first amended complaint (“FAC”) on June 20, 

2017. FAC, Dkt. No. 83. Qualcomm answered Apple’s first amended complaint on July 

21, 2017, Dkt. No. 97, and Apple answered Qualcomm’s first amended counterclaims on 

August 4, 2017, Dkt. No. 107. 

1. Apple’s First Amended Complaint 

Apple’s first amended complaint asserts sixty-three (63) causes of action against 

Qualcomm. Those claims can be separated into three categories: breach of contract 

claims, patent claims, and antitrust claims. 

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Counts I through IV seek relief related to Qualcomm’s rights and obligations under 

the Business Cooperation and Patent Agreement (“BCPA”), which addresses, among 

other matters, royalty rebates that Qualcomm pays to Apple. 

Counts V through LVIII seek declarations stating that eighteen of Qualcomm’s

patents are not infringed by Apple’s technology and that they are invalid under U.S. 

patent law. In the alternative and in the event that the Court finds that the patents are 

valid and infringed, Apple asks the Court to set a FRAND royalty rate for all eighteen 

patents. 

Count LIX seeks a declaration that the sale of Qualcomm’s baseband processor 

chipsets to the Contract Manufacturers exhausts Qualcomm’s patent rights and that,

therefore, the eighteen patents-in-suit are unenforceable as to Apple. Count LX seeks 

declaratory relief regarding the Strategic Terms Agreement (“STA”), which requires 

Apple to pay a license fee on Qualcomm’s exhausted patents. Count LXI, relatedly, 

seeks declaratory relief regarding the Contract Manufacturers’ obligations to pay license 

fees on exhausted patents under their license agreements with Qualcomm. 

Finally, Counts LXII and LXIII lodge antitrust and anticompetitive claims against 

Qualcomm. Count LXII alleges that Qualcomm has unlawfully monopolized the market 

for cellular chipsets in violation of Section 2 of the Sherman Act, 15 U.S.C. § 2. Count 

LXIII alleges that Qualcomm’s licensing practices constitute unfair competition within

the meaning of the Cal. Bus. & Prof. Code § 17200, et seq. (the “Unfair Competition 

Law”).3 

 

3 Apple’s January 20, 2017 complaint asserted twenty-five (25) causes of action against Qualcomm. 

Dkt. No. 1. Of those causes of action, eighteen (18) were patent challenges directed at nine separate 

patents owned by Qualcomm. Additional challenges launched at another nine patents, along with added 

invalidity claims as to the nine patents already asserted in the original complaint, account for thirty-six 

(36) of the extra causes of action in the FAC. Thus, besides for the supplemental patent claims, the only 

other new causes of action raised by Apple in the FAC concern Claim LX (60), the request for 

declaratory relief on the STA and Claim LXI (61), the request for declaratory relief for Qualcomm’s 

license agreements with the Contract Manufacturers. 

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2. Qualcomm’s First Amended Counterclaims

Qualcomm’s first amended counterclaims assert a number of contract-based causes 

of action against Apple and, in addition, seek for the Court to issue a number of 

declarations regarding Qualcomm’s FRAND commitments and anticompetitive behavior. 

Count I seeks to hold Apple accountable for tortiously interfering with 

Qualcomm’s license agreements with the Contract Manufacturers. Count V alleges that 

Apple breached the Statement of Work, a contract providing for a high-speed chipset 

feature called “carrier aggregation,” and Count XI claims that Apple breached the Master 

Software Agreement, a contract that provides Apple with software to operate 

Qualcomm’s chipsets. 

Counts VI through IX relate to Apple’s and Qualcomm’s obligations under the 

BCPA. Specifically, Qualcomm alleges that Apple breached the BCPA, the implied 

covenant of good faith and fair dealing with regard to the BCPA, and that Apple was 

unjustly enriched by its breaches. Count IX seeks declaratory relief finding that Apple’s 

breaches relieved Qualcomm of its obligations under the BCPA as to royalty rebate 

payments. 

Count X alleges that Apple violated California’s Unfair Competition Law by 

covering up the superior performance of Qualcomm’s chipsets in the iPhone 7s, as 

compared to Intel’s chipsets, by declaring that there was no difference between the 

models, and by preventing Qualcomm from making statements on the matter. 

Counts II and III seek declarations that Qualcomm’s license agreements with the 

Contract Manufacturers do not violate Qualcomm’s FRAND commitments to ETSI and 

do not violate competition law. Moreover and importantly for present purposes, Count 

IV seeks a declaration that Qualcomm has satisfied and discharged its FRAND 

commitment to ETSI with regards to Apple. More precisely, Qualcomm seeks for the 

Court to conclude that its licensing offers to Apple, including its June 2016 and July 2016 

SEP portfolio offers, satisfied Qualcomm’s FRAND commitment to ETSI. Alternatively 

and in the event the Court determines that Qualcomm’s offers were not FRAND, 

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Qualcomm asks the Court to set a FRAND rate for the worldwide SEP portfolio that 

Qualcomm offered to Apple. 

C. Foreign actions 

Between January 23, 2017 and April 11, 2017, Apple filed a total of eleven 

lawsuits against Qualcomm and its subsidiaries in the United Kingdom, Japan, China, 

and Taiwan.4 All but one of these lawsuits was filed before Qualcomm had answered 

Apple’s original complaint. The Taiwanese lawsuit was filed on April 11, 2017, the day 

after Qualcomm filed its answer and the above-mentioned counterclaims. 

1. U.K. action

Apple initiated the U.K. proceeding in the Patent Court of the English High Court 

of Justice. Harrison Decl. ¶ 2. There are six claimants in the U.K. proceeding: Apple 

Retail UK Limited, Apple Distribution International, Apple Operations Europe, Apple 

GmbH, Apple Retail Germany B.V. & CO K.G., and Apple Inc. Id. ¶ 3. The four 

defendants in the UK proceeding are: Qualcomm UK Limited, Qualcomm 

Communications UK Limited, Qualcomm Technologies International Ltd, and 

Qualcomm Incorporated. Id. ¶ 4. Apple does not seek any global relief in the U.K.

action. Id. ¶ 7 (“. . . none of these [claims] involve any global relief, including any 

determination relating to a global licence [sic] of any of Qualcomm’s patents.”). 

Claims 1 and 2 of the UK proceeding seek declarations that the U.K. Defendants 

have breached their obligations under Article 102 of the Treaty of the Functioning of the 

European Union, Article 54 of the Agreement on the European Economic Area, Section 

18 of the Competition Act of 1998, and/or their obligations to ETSI by (1) abusing their 

dominant position in the markets for LTE, CDMA, and WCDMA/UMTS chipsets and (2) 

 

4 Apple filed a single complaint in the U.K. on January 23, 2017. Harrison Decl. ¶ 2 , Dkt. No. 108-3 at 

2. It filed four complaints in Japan on February 16, 2017, Yakura Decl. ¶¶ 3, 15, Dkt. No. 108-6 at 2, 5. 

Thereafter, Apple filed five complaints in China. Yang Decl. ¶ 5, Dkt. No. 108-8 at 2. Finally, on April 

11, 2017, Apple filed a complaint against Qualcomm in Taiwan. Wang Decl. ¶ 2, Dkt. No. 108-4 at 2. 

Although the Yang declaration does not include the precise date that the five Chinese actions were filed, 

Qualcomm has not objected to Apple’s representation that all lawsuits were filed before April 11, 2017. 

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abusing their ownership of SEPs in licensing practices. Id. ¶ 8. Claim 3 requests that the 

U.K. Defendants be required to offer the U.K. Claimants a direct license, on FRAND 

terms, of the SEPs practiced in Apple devices for sale in the European Union. Id. Claims 

4 through 6 seek an order declaring that the five U.K. patents-in-suit are invalid, that they 

should be revoked, and that they are not essential to ETSI’s telecommunications 

standards. Id. Claim 7 asserts that the U.K. Defendants’ rights under the patent-in-suits 

have been exhausted with respect to any device that incorporates a Qualcomm chipset. 

Id. Claims 8 through 11 seek damages, costs, interest, and other relief. Id.

2. Japanese action

Apple filed four Japanese complaints against Qualcomm Inc., Qualcomm Japan, 

Qualcomm Technologies, Inc., and Qualcomm CDMA Technologies Asia-Pacific Pte. 

Ltd. in three separate departments at the Tokyo District Court. Yakura Decl. ¶ 11. The 

first complaint involves antitrust law and alleges that Qualcomm has violated Japan’s 

Antimonopoly Act through monopolization and abuse of its superior bargaining position 

and that it has also violated various Japanese civil codes by failing to comply with its 

FRAND obligations. Id. ¶ 15. The second, third, and fourth complaints each challenge a 

single Qualcomm-owned patent and allege that the patent is invalid, that it is not 

infringed by Apple’s products, and that Qualcomm’s rights to the patent are exhausted 

under Japanese law. Id. ¶¶ 3, 10. None of these claims request that the Japanese courts

determine a FRAND rate for Qualcomm’s global license portfolio. Id. ¶ 2. 

3. Chinese action

The claimants in the Chinese proceedings are Apple Inc. and Apple Electronic 

Products Commerce (Beijing) Co., Ltd. and the defendants are Qualcomm Incorporated, 

Qualcomm Technologies, Inc., Qualcomm Wireless Communications Technologies 

(China) Co., Ltd., and Qualcomm Wireless Semiconductor Technologies Co., Ltd. Yang 

Decl. ¶ 2. The first claim in the Chinese proceeding asserts, in part, that the Chinese 

Defendants have abused their market dominance under the China Anti-Monopoly Law by 

charging the Chinese Claimants excessive royalties on Apple’s products sold in China. 

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Id. ¶ 6. The second claim asks the Chinese court to settle disputes over licensing 

conditions for the Chinese Defendants’ SEPs. Id. ¶ 2. 

 Id., Exhibit 2, Dkt. No. 140-2 

at 22-23 (under seal). The third through fifth claims, in turn, seek for the court to declare 

that the Chinese Claimants are not liable for patent infringement on any of the three 

Chinese patents-in-suit. Yakura Decl. ¶ 2. None of the Chinese proceedings seek a 

determination of a FRAND rate for Qualcomm’s global patent portfolio. Id. ¶ 5. 

4. Taiwanese action 

In the Taiwanese proceeding, Apple Inc. and Apple Asia LLC have sued 

Qualcomm Incorporated, Qualcomm Technologies Inc., Qualcomm Taiwan Corporation, 

and Qualcomm CDMA Technologies Asia-Pacific PTE Limited. Wang Decl. ¶ 1. The 

Taiwanese action alleges that the Taiwanese Defendants have violated the Taiwan Fair 

Trade Law and have abused their patent rights through its activities in the baseband 

chipset market and SEP licensing market. Id. ¶¶ 2, 4. The Taiwanese suit does not 

request any worldwide FRAND determination. Id. ¶ 5. 

III. DISCUSSION 

Qualcomm has moved for an anti-suit injunction against Apple. The motion seeks 

to enjoin Apple from pursuing all of the claims in all of the foreign actions and from 

filing any other foreign action during the pendency of the U.S. action. Neither 

Qualcomm’s motion nor its reply asks, in the alternative, for a more limited anti-suit 

injunction that only targets certain claims. Qualcomm contends that an anti-suit 

injunction is appropriate because all of Apple’s foreign actions are part of a single 

licensing dispute already before this Court in the U.S. action. Qualcomm avers that the 

“essence of Apple’s [U.S. claim] is that Qualcomm’s royalties (both in the existing 

license agreements with the Contract Manufacturers and in Qualcomm’s offer to Apple 

for a direct license) are not FRAND.” Dkt. No. 92-1 at 6. Accordingly, Qualcomm 

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argues, the foreign actions are duplicative because this Court will already “determine 

whether Qualcomm has satisfied its global FRAND commitment as to Apple under the 

ETSI contract[.]” Id. at 18. For the following reasons, however, the Court disagrees with 

Qualcomm’s contentions and finds that none of the anti-suit injunction factors weigh in 

favor of the requested relief. Accordingly, the Court denies Qualcomm’s motion for an 

anti-suit injunction. 

A. Anti-suit injunctions

“Courts derive the ability to enter an anti-suit injunction from their equitable 

powers.” E. & J. Gallo Winery v. Andina Licores S.A., 446 F.3d 984, 989 (9th Cir. 

2006). Anti-suit injunctions “allow the court to restrain a party subject to its jurisdiction 

from proceeding in a foreign court in circumstances that are unjust.” Id. The injunction 

thus operates in personam. Id. The court enjoins the claimant, not the foreign court. Id.

Although the district court has the power to enjoin a party from proceeding with a suit in 

a foreign country, the power should be used sparingly. Microsoft, 696 F.3d at 881. 

A three-part inquiry governs a district court’s assessment of the propriety of an 

anti-suit injunction. Id. First, the court must evaluate “whether or not the parties and the 

issues are the same, and whether or not the first action is dispositive of the action to be 

enjoined.” Applied Med. Distrib. Corp. v. Surgical Co., 587 F.3d 909, 914 (9th Cir. 

2009). Second, the court must assess “whether at least one of the so-called ‘Unterweser 

factors’ applies.” Microsoft, 696 F.3d at 881. Third, the court must inquire into whether 

the impact on comity is tolerable. Id.

The Unterweser factors were first articulated by the Fifth Circuit in In re 

Unterweser Reederei GMBH, 428 F.2d 888, 896 (5th Cir. 1970), aff’d on reh’g, 446 F.2d 

907 (5th Cir. 1971) (en banc) (per curiam), rev’d on other grounds sub nom. M/S Bremen 

v. Zapata Off–Shore Co., 407 U.S. 1 (1972). The Ninth Circuit adopted the Fifth 

Circuit’s decision in Unterweser as instructive in Seattle Totems Hockey Club, Inc. v. 

Nat’l Hockey League, 652 F.2d 852 (9th Cir. 1981) and has since held that “any of the 

Unterweser factors” may justify anti-suit injunctive relief. Microsoft, 696 F.3d at 882 & 

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n.9. The four Unterweser factors are as follows: whether the foreign litigation would (1) 

frustrate a policy of the forum issuing the injunction; (2) be vexatious or oppressive; (3) 

threaten the issuing court’s in rem or quasi in rem jurisdiction; or (4) prejudice other 

equitable considerations. Id. at 882 (quoting Gallo, 446 F.2d at 990). Thus, so long as 

one of these factors applies, a court may grant an anti-suit injunction. 

B. The issues are not the same and the U.S. action will not dispose of the 

foreign actions

Whether or not the parties and issues are the same is a functional inquiry. 

Microsoft, 696 F.3d at 882 (quoting Applied Med., 587 F.3d at 915). There is no dispute, 

here, that the parties in the U.S. and foreign actions are functionally the same. The focus 

of the Court’s inquiry, therefore, is on whether the issues are functionally the same. 

Functional similarity depends upon whether “all the issues in the foreign action can be 

resolved in the local action.” Id. at 832-33 (internal punctuation omitted). The issues 

“need not be ‘precisely and verbally identical,’ as ‘the verbal form of laws in different 

countries will inevitably differ.’” Id.; see also Applied Med., 587 F.3d at 915 (“. . . . 

requiring issues to be precisely and verbally identical would lead to counterproductive, 

and perhaps unintended, results.”). Rather, “the crux of the functional inquiry in the first 

step of the analysis is to determine whether the issues are the same in the sense that all 

the issues in the foreign action . . . can be resolved in the local action.” Applied Med., 

587 F.3d at 915. 

1. Qualcomm’s position

Qualcomm argues that the issues in the U.S. and foreign actions are the same for 

purposes of an anti-suit injunction because “[w]hether Qualcomm has complied with its 

contractual FRAND obligations as to Apple is squarely before this Court and is raised 

repeatedly throughout Apple’s foreign complaints.” Dkt. No. 92-1 at 18. Given the 

parties’ inability to agree on FRAND terms for Qualcomm’s global SEP portfolio, 

“Qualcomm has asked this Court to declare that Qualcomm has satisfied and discharged 

its FRAND commitments as to Apple or, in the alternative, to declare the FRAND royalty 

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terms for Qualcomm’s global portfolio of cellular SEPs that it has offered to Apple.” Id.

at 20. Thus, Qualcomm contends, “This global determination will resolve the FRAND 

issues between Apple and Qualcomm in Apple’s foreign lawsuits.” Id. 

As to the non-FRAND issues raised in Apple’s foreign actions, Qualcomm argues 

that those, too, should be enjoined because they are “tied to Qualcomm’s FRAND 

obligations” and will become “moot” by resolving the parties’ global licensing dispute. 

Id. at 22-23. The antitrust and patent claims included in Apple’s foreign actions will 

become moot, Qualcomm contends, because the foreign patent and antitrust claims 

“depend on the determination of the core FRAND questions as between Apple and 

Qualcomm” currently before this Court. Dkt. No. 114 at 8-9. In other words, and as 

Qualcomm articulated at the August 18, 2017 hearing, Apple’s foreign claims and 

arguments will “evaporate because they are all premised on the notion that they can’t get 

to our technology under FRAND terms.” Transcript, Dkt. No. 122 at 52. 

2. Functional similarity in the Ninth Circuit

To understand why Qualcomm’s position on the functional similarity of the U.S. 

and foreign claims is unpersuasive, the Court must first review those cases that have 

passed the Ninth Circuit’s threshold inquiry. Qualcomm would have this Court conclude 

that the FRAND claims that Apple has asserted in this action, along with Qualcomm’s 

global FRAND counterclaim, dispose of all of the claims in Apple’s foreign suits, 

including Apple’s anticompetitive and patent claims. Such a conclusion, however, does 

not follow from the Ninth Circuit’s reasoning in its most recent anti-suit cases, including 

its decision in Microsoft v. Motorola, upon which Qualcomm’s position heavily relies. 

The Court will thus address these cases first. 

Prior to the Microsoft decision, the two seminal cases on anti-suit injunctions were 

Gallo and Applied Medical. In Gallo, the plaintiff, Gallo, moved to enjoin the defendant, 

Andina, from proceeding with foreign litigation in Ecuador. 446 F.3d at 986-87. Gallo, a 

large California winery, had entered into a distributorship agreement with Andina, an 

Ecuadorian wine and liquor distributor, that contained a forum-selection and choice of 

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law clause in favor of California. Id. at 987. Subsequently and after a number of 

disputes arose concerning late shipments and the exclusivity of Andina’s distributorship,

Andina filed suit in Ecuador alleging that Gallo had breached the distributorship 

agreement under Ecuadorian law. Id. Some weeks later, Gallo filed suit in California 

state court, and the case was removed to federal district court. Id. at 988. Thereafter, 

Gallo moved the district court for a preliminary injunction preventing Andina from 

proceeding with its litigation in Ecuador. Id. at 986-87. Ultimately, the district court 

denied the injunction “because the California and Ecuador cases arose from different 

acts” and because “enjoining the Ecuador action would deprive it [Andina] of its right to 

pursue its claims under Ecuadorian law.” Id. at 991. 

On appeal, the Ninth Circuit disagreed with the district court’s reasoning regarding 

the legal differences between the two cases. Whereas the district court held that the suits 

were distinct because they arose under different laws, the Gallo court held that the issues 

were, in fact, functionally the same because both suits arose out of the same alleged 

breach of the distributorship agreement. See id. The Gallo court moreover noted that 

because the distributorship agreement contained a choice of law clause, it was not even 

clear that Andina had the right to seek a remedy under Ecuadorian law. Id. In addition, 

and in the section addressing whether any public policy weighed toward granting an antisuit injunction, the Gallo court held that the public policy in favor of enforcing forumselection clauses further justified enjoining the foreign action. See id. at 991-93.

Accordingly, the Ninth Circuit reversed the district court’s opinion with instructions to 

grant what it deemed to be a “paradigmatic case for a preliminary anti-suit injunction.” 

Id. at 995. 

The Ninth Circuit’s similarity-of-issues inquiry in Applied Medical turned even 

more explicitly on the parties’ forum-selection and choice of law clause. In Applied 

Medical, the plaintiff was a California corporation that sold surgical supply products and 

the defendant was a Netherlands limited liability company that purchased plaintiff’s 

products for distribution in Europe. 587 F.3d at 911. Like the parties in Gallo, the 

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Applied Medical parties had signed a distributorship agreement that included a forumselection clause in favor of California and its laws. Id. Later on, a dispute arose after the 

plaintiff, Applied, notified the defendant, Surgical, that it would be exercising its right

not to renew the distributorship agreement. Id. at 912. In response, Surgical asserted that 

any failure to renew the agreement would entitle it to compensation under the Belgian 

Act of 1961. Id. Thereafter, Applied filed a complaint in federal district court seeking 

declaratory relief and Surgical filed suit in Belgium a month later. Id. Both lawsuits 

concerned whether Applied owed Surgical pre-termination damages given the terms of 

their contract. Id. at 912-13. 

Below, the district court had held that the U.S. and foreign suits were not 

functionally the same because the Belgian claims were “potentially broader” than the 

U.S. claims and, therefore, did not necessarily turn on the termination of the 

distributorship agreement. Id. at 913. The Applied Medical court, however, found this 

reasoning to be in error because the U.S action was nonetheless dispositive of the foreign 

action. “We hold that the present action is dispositive of the Belgian action because all of

the claims in the Belgian action arise out of the Agreement, are subject to the forum 

selection clause, and therefore must be disposed of in the California forum if at all.” Id.

at 916 (internal citations omitted). In other words, the Applied Medical court concluded 

that the issues were functionally the same because the domestic action, via the forumselection clause, would dispose of all the issues in the foreign action. Id. at 915 (“ . . . to 

the extent the domestic action is capable of disposing of all the issues in the foreign 

action and all the issues in the foreign action fall under the forum selection clause, the 

issues are meaningfully ‘the same.’”). 

In Microsoft, the Ninth Circuit addressed for the first time what functionally 

similar claims look like absent a forum-selection clause. Microsoft, 696 F.3d at 882 

(“Although the contract at issue in this case does not contain a forum-selection clause, we 

are nevertheless informed by Applied Medical’s emphasis on the functional character of 

the threshold similarity-of-issues inquiry.”). The dispute between the Microsoft parties, 

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unlike the Gallo and Applied Medical parties, did not arise from a contract executed 

between the plaintiff and the defendant. Rather, it arose out of an agreement entered into 

by the defendant, Motorola, and two standard-setting organizations, the International 

Telecommunications Union (“ITU”) and the Institute of Electrical and Electronics 

Engineers (“IEEE”). Id. at 875-76. Motorola, like Qualcomm, had made written 

representations to a standard-setting organization promising to offer worldwide licenses 

to its SEPs on RAND terms — that is reasonable and non-discriminatory terms. See id.

at 876. Microsoft, the plaintiff, later sued Motorola in district court alleging that 

Motorola had breached its contract with the SSOs by offering Microsoft a global SEP 

license that was non-RAND. Id. at 877-78. Microsoft posited that it had standing to 

assert such a claim because it was a third-party beneficiary of Microsoft’s contractual 

obligations to the ITU and IEEE. Id. at 878. 

Months after the U.S. action commenced, Motorola filed suit against Microsoft in 

Germany alleging that Microsoft was infringing upon two of Motorola’s German

standard-essential patents. Id. at 879. After reviewing the positions of the parties, the 

German court rejected Microsoft’s key contention that it could enforce Motorola’s 

RAND commitment to the ITU because German law does not recognize third-party 

contractual rights. Id. As such, and having ultimately found that Microsoft was 

infringing upon Motorola’s German SEPs, the German court issued an injunction 

prohibiting Microsoft from marketing or selling any of its infringing products in 

Germany. Id.

In the meantime and while the German court’s decision was still pending, 

Microsoft asked the U.S. district court to enjoin Motorola from enforcing any injunction 

obtained from the German court. Microsoft, 871 F. Supp. 2d at 1100. In so doing, 

Microsoft argued that an anti-suit injunction was appropriate because the relief that 

Motorola sought in the foreign action was “squarely before” the district court. 

Ultimately, the district court agreed. After evaluating Microsoft’s request under the 

three-part Applied Medical rubric, it concluded that the issues were functionally the same 

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because whether injunctive relief was an appropriate remedy for infringement of 

Motorola’s SEPs depended upon the district court’s adjudication of the parties’ 

contractual obligations. See id. at 1099. As such, the court concluded, and because the 

district court “in no way enjoined Motorola from pursuing the German Action” and 

because it “in no way prohibited further proceedings in Germany,” the court granted what 

it deemed to be a very “limited” injunction. Id. at 1100. 

The Ninth Circuit approved of this reasoning on appeal. In its opinion, the 

Microsoft court emphasized that the district court was correct to issue the injunction 

because it “[wa]s not enforcing German patent law but, rather, the private law of the 

contract between the parties.” Id. at 884. 

. . . the district court concluded that the pending contract action before it 

would be dispositive of the German patent action, because the European 

Patents at issue in the German Action were included in Motorola’s October 

29 Letter offering a worldwide license for Motorola’s H.264 Standardessential patents, and because Motorola contracted with the ITU to license the 

European Patents on RAND terms to all applicants on a worldwide basis.

Id. at 880 (emphasis in original) (internal citations omitted). Accordingly and because

“there is no reason a party may not freely agree to reservations or limitations on rights 

that it would have under foreign patent law (or any other rights that it may have under 

foreign law),” the Microsoft court held that Motorola’s licensing commitment to the ITU 

prevented it from seeking injunctive relief against infringement. Id. at 884. 

3. The import of the decision in Microsoft

Qualcomm argues that the Ninth Circuit’s decision in Microsoft is “squarely on 

point” and governs the instant anti-suit injunction. Dkt. No. 92-1 at 7-8. This is so,

Qualcomm avers, because here, like in Microsoft, the parties have asked the Court to 

resolve their global FRAND dispute after being unable to reach an agreement during 

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negotiations.

5

 Id. at 8. As such, Qualcomm argues, just as the anti-suit injunction was 

necessary in Microsoft to allow the “district court to resolve the global FRAND issues,” it 

is likewise necessary here to enjoin Apple’s foreign actions so that they cannot “impede

this Court’s ability to resolve the issues before it.” Id.

Qualcomm’s analogy to Microsoft is specious. While Microsoft and the instant 

matter undoubtedly share the same general set of circumstances, key differences between 

the cases overpower any superficial similarities. In Microsoft, the court enjoined the

party — that is, Motorola — that had made the binding commitment to the standardsetting organization. This distinction is legally significant. Just as the parties in Gallo 

and Applied Medical entered into a binding forum-selection and choice-of-law clause, 

Motorola entered into a binding commitment to offer licenses to its patented technology 

on RAND terms. In exchange for having its SEPs incorporated into the ITU standard, 

Motorola promised the ITU that it would license its SEPs to all willing licensees. By

striking this bargain, therefore and according to the Microsoft district court, Motorola

willingly limited itself to one of two alternatives: either make Microsoft, and all other 

willing licensees, a RAND offer through bilateral negotiation or after adjudication by the 

courts. Microsoft, 871 F. Supp. 2d at 1099. In other words, by making a FRAND 

 

5 The Court observes that Apple’s complaint does not ask for a worldwide FRAND determination. That 

relief is found only in Qualcomm’s counterclaim. Notwithstanding this fact, Qualcomm argues that 

Apple’s complaint nevertheless places the parties’ global FRAND dispute in issue because the parties’ 

failed licensing negotiations precipitated the current dispute. Accordingly and because Apple’s 

complaint has placed the global FRAND dispute in issue, Qualcomm avers that this Court should 

resolve the global FRAND issues between Apple and Qualcomm. Dkt. No. 92-1 at 20. At oral 

argument, it became apparent that Apple’s position is that this Court does not have the authority to 

adjudicate Qualcomm’s counterclaim for a global FRAND determination because Apple is under no 

obligation to accept Qualcomm’s license offer regardless of whether the offer is FRAND and because 

Apple has not consented to be bound by any global FRAND determination. Transcript, Dkt. No. 122 at 

41-47. As such, Apple argues that any decision by this Court setting a global FRAND rate would be an 

advisory opinion. See generally Microsoft Corp. v. Motorola, Inc., 795 F.3d 1024, 1039 n.13 (9th Cir. 

2015); TCL Commc’ns Tech. Holdings Ltd. v. Telefonaktenbologet LM Ericsson, 2014 WL 12588293, 

*5 (C.D. Cal. Sept. 30, 2014); Realtek Semiconductor Corp. v. LSI Corp., 2012 WL 4845628, *5 (N.D. 

Cal. Oct. 10, 2012). The Court, however, need not decide this question to resolve the instant motion. 

Regardless of whether or not Qualcomm’s counterclaim is proper, the anti-suit injunction fails. 

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commitment to the ITU, Motorola surrendered its right to seek infringement actions 

against a willing licensee, including Microsoft, because, when all was said and done, 

Motorola had to offer Microsoft a RAND license. 

Understood in this way, the Microsoft court applied the same principle articulated 

in Gallo and Applied Medical by similarly holding the enjoined party to its contractual 

bargain. Motorola, through its RAND commitment to the standard-setting organization, 

promised to license, on RAND terms, any entity that wanted to practice the relevant 

standard. In so doing and according to the Microsoft court, Motorola gave up the right to 

pursue infringement actions except against an unwilling licensee. It was, therefore, 

plainly improper, vexatious, and duplicative for Motorola to bring an infringement action 

in a foreign court for a patent that Microsoft had wanted to license, but could not, due to 

Motorola’s failure to make a RAND offer. 

This reasoning, however, does not translate into the instant set of circumstances. 

Here, Qualcomm seeks to enjoin Apple from proceeding with foreign litigation based 

upon Apple’s mere invitation to deal with Qualcomm. Apple, unlike Qualcomm, has not 

made any binding commitment to ETSI.6 And Apple does not have a licensing 

agreement with Qualcomm. The only contractual rights and obligations implicated by 

this lawsuit are Apple’s rights and obligations as a third-party beneficiary of Qualcomm’s 

promises to ETSI. Stated differently, Apple, unlike Motorola and Qualcomm, has made 

no binding commitment that limits the relief that it may seek or how it may enforce that 

relief. Whereas Qualcomm’s negotiations with Apple are constrained by its contractual 

obligations to ETSI, Apple is free to decline or accept Qualcomm’s offer regardless of 

whether it complies with FRAND.

7

 

 

6 The Court observes that Apple is a member of ETSI. Qualcomm, however, has made no argument that 

through its membership, Apple has somehow agreed to circumscribe or limit how it may seek to enforce 

other members’ obligations to ETSI. 

7 Of course, if Apple wishes to enforce Qualcomm’s commitment to ETSI it must demonstrate that it 

was a willing licensee and, therefore, a proper third-party beneficiary. The nature of that obligation, 

however, is different in kind than Qualcomm’s obligation to ETSI. If Apple is not a willing licensee, it 

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In light of these legal rights and obligations, and notwithstanding Qualcomm’s 

protestations to the contrary, the Microsoft holding is not “squarely on point.” The 

Microsoft court concluded that the U.S. and foreign actions were functionally the same 

because Motorola’s contractual commitment to the standard-setting organization 

effectively mooted any right Motorola had to bring an action for infringement in a foreign 

court. The same cannot be said of Apple’s U.S. and foreign actions. Apple has made no 

binding commitment that limits where it can bring a lawsuit, under what laws, or how it 

can enforce its third-party beneficiary rights under ETSI. As a baseline matter, therefore, 

Apple is free to exercise its rights in the United Kingdom, China, Taiwan, and Japan 

under those countries’ laws. Accordingly, the similarity-of-issues principle that 

underpinned Gallo, Applied Medical, and Microsoft does not dictate the outcome of the 

threshold similarity-of-issues inquiry here. 

4. The U.S. action is not dispositive of the foreign actions

With this background in mind, the Court now turns to the question of whether this 

Court’s adjudication of the claims before it will be dispositive of Apple’s foreign actions. 

Qualcomm, of course, argues that this Court’s “ruling on Qualcomm’s FRAND 

obligation will be dispositive of Qualcomm’s obligations as to Apple (and the extent to 

which they were satisfied) worldwide.” Dkt. No. 92-1 at 7. More specifically, 

Qualcomm asserts that this Court’s “binding, global FRAND determination as to the 

obligations owed between Apple and Qualcomm and the extent to which they were 

fulfilled . . . will resolve issues at the core of the foreign actions[.]”

8

 Id. at 25. 

Apple begs to differ. Apple contends that even the global FRAND issue will not 

dispose of the foreign actions because Apple’s foreign suits have challenged the validity 

and exhaustion of Qualcomm’s foreign patents, under foreign patent law, and have 

 

simply loses the right to enforce Qualcomm’s contract with ETSI. Yet if Qualcomm fails to offer a

FRAND license, it has breached its contractual obligations. 

8 The Court again observes that Apple disputes that it would be bound by any global FRAND 

determination made by this Court because it does not have to accept a license from Qualcomm. 

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additionally challenged Qualcomm’s licensing practices under foreign competition and 

anti-trust laws. Dkt. No. 108 at 21. Apple moreover argues that this Court does not have 

the authority to make determinations regarding the validity of U.K., Chinese, Japanese, or 

Taiwanese patents under their laws, and that any antitrust relief sought under U.S. law 

could not apply out of the U.S. territory. See Dkt. No. 108 at 21-23. 

Qualcomm’s response to these legitimate concerns is lacking and otherwise 

unconvincing. In its reply brief, Qualcomm emphasizes that Apple’s arguments miss the 

mark because Qualcomm’s contractual FRAND obligation applies worldwide. Thus, it 

argues, “while a U.S. antitrust claim may concern only U.S.-related activity, the 

contractual FRAND inquiry necessarily concern global activities.” Dkt. No. 114 at 8. 

With regards to Apple’s patent-based contentions it argues along similar veins that 

“Because the foreign patent claims are intertwined with the same FRAND issues before 

this Court, the U.S. Action will dispose of core issues in the foreign patent claims.” Id.

(footnote omitted). Qualcomm’s response to Apple’s concerns at oral argument likewise 

lacked specificity. When the Court directly asked Qualcomm to explain how the U.S. 

action would dispose of Apple’s anticompetitive claims in the foreign suits, Qualcomm 

simply reiterated, without explaining, that the parties’ FRAND dispute is a worldwide 

contractual question and that that contractual FRAND question will moot the foreign 

actions as was the case in Microsoft. See Transcript, Dkt. No. 122 at 9-12, 15-17. 

Yet what Qualcomm left out of its response, both in its briefing and at oral 

argument, is telling. Apple has asserted anticompetitive-based causes of action under 

Article 102 of the Treaty of the Functioning of the European Union, Article 54 of the 

Agreement on the European Economic Area, Section 18 of the U.K. Competition Act of 

1998, Japan’s Antimonopoly Act, the Chinese Anti-Monopoly Law, and the Taiwan Fair 

Trade Law. Qualcomm, however, has not even attempted to explain (other than relying 

on Microsoft) why this Court’s findings on Qualcomm’s FRAND obligations to ETSI 

would be dispositive of Apple’s anticompetition claims under these laws. Qualcomm 

does not argue that the foreign courts are bound by this Court’s FRAND determination. 

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In fact, it does not even explain why this Court’s global FRAND determination would 

moot Apple’s suit challenging purely foreign conduct and foreign effects. Qualcomm has 

wholly failed to demonstrate how an adjudication on the merits, here, would dispose of 

Apple’s anticompetitive claims abroad. Accordingly and for the reasons previously

stated, this Court is not persuaded that even resolution of Qualcomm’s global contractual 

obligations to ETSI will dispose of Apple’s competition-based causes of action arising 

under foreign laws. 

What is more, Apple has also asserted patent-based causes of action alleging that 

Qualcomm’s U.K. SEPs are invalid and exhausted under U.K. law, that Qualcomm’s 

Chinese SEPs are invalid and exhausted under Chinese law, that Qualcomm’s Japanese 

SEPs are invalid and exhausted under Japanese law, and that Qualcomm’s Taiwanese 

SEPs are invalid and exhausted under Taiwanese law. But yet again, other than pointing 

to the outcome in Microsoft, Qualcomm has failed to adequately explain how this Court’s 

adjudication of Qualcomm’s global contractual FRAND commitment to ETSI would 

moot Apple’s foreign patent claims. Apple is not obligated to accept a worldwide 

FRAND license from Qualcomm. Apple, therefore, has not contracted away its right to 

ask foreign courts for declarations that their products do not infringe upon Qualcomm’s 

SEPs because those SEPs are either non-essential, invalid, or exhausted under foreign 

law. Accordingly and even if this Court ultimately sets a worldwide FRAND rate for 

Qualcomm’s global portfolio, Apple’s patent claims for invalidity and exhaustion under 

foreign law as to foreign patents will remain unaddressed. 

As such and in the absence of any argument explaining how the U.S. action 

specifically moots each of the distinct claims asserted in Apple’s foreign actions, the 

Court concludes that Qualcomm has failed to demonstrate that the issues in Apple’s U.S. 

and foreign actions are functionally similar in the sense that an adjudication on the merits 

here would dispose of the claims abroad. The Court moreover concludes that even if 

Qualcomm had demonstrated that the issues in the U.S. action and the foreign actions are 

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“functionally similar,” the Court’s ultimate decision would not change as the Court 

additionally finds that the remaining two anti-suit factors are also absent. 

C. None of the articulated Unterweser factors applies

The second step in deciding an anti-suit injunction requires the Court to assess 

whether the foreign litigation would (1) frustrate a policy of the forum issuing the 

injunction; (2) be vexatious or oppressive; (3) threaten the issuing court’s in rem or quasi 

in rem jurisdiction; or (4) prejudice other equitable considerations. Microsoft, 696 F.2d 

at 881-82. Only one of these factors needs to be met in order to weigh in favor of 

granting an anti-suit injunction. Id. at 885. Qualcomm contends that at least two of the

Unterweser factors applies: namely, the second, that Apple’s foreign actions are 

vexatious and oppressive, and the fourth, that Apple’s simultaneous U.S. and foreign 

proceedings prejudice other equitable considerations.9 Dkt. No. 92-1 at 25. 

1. Apple’s foreign suits are not vexatious or oppressive

A party demonstrates that suit is “vexatious” if it can show that the suit was 

“without reasonable or probable cause or excuse; harassing; annoying.” Microsoft, 696 

F.2d at 886. Qualcomm avers that Apple’s foreign lawsuits are vexatious because they 

are duplicative and because the duplicative nature of the lawsuits demonstrates that Apple 

seeks to harass Qualcomm in order to gain leverage in future licensing negotiations. Dkt. 

No. 92-1 at 26-27. As such, Qualcomm argues, the “additional foreign actions [that] 

Apple has brought . . . can only be described as vexatious.” Id. at 27. 

The record before the Court, however, does not support Qualcomm’s contentions. 

For one, Apple filed the U.S. action in January 2017 and it filed the U.K., Japanese, 

Chinese, and Taiwanese actions one after the other between January 2017 and April 

2017. All of Apple’s foreign actions, therefore, were filed before the parties’ pleadings 

 

9 The Court observes that it is telling that the two factors that Qualcomm has identified as applicable are 

the two factors deemed less important elsewhere. See, e.g., Ibeto Petrochemical Indus. Ltd. v. M/T 

Beffen, 475 F.3d 56, 64 (2d Cir. 2007) (concluding that the first and third Unterweser factors hold 

greater significance than the second and fourth). 

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were finalized and before this Court ever made a ruling on the merits. As such, this is not 

a case where the delay between the filing of the first action and the subsequent actions

raises concerns about forum-shopping or harassing motive. See Microsoft, 871 F. Supp. 

2d at 1100 (finding vexatious duplication where Motorola filed a single foreign action 

alleging infringement of two patents six months after Microsoft had filed a U.S. action

seeking to resolve Microsoft’s dispute with Motorola concerning those same patents and 

one hundred additional patents).

Two, Apple has submitted declarations from each of their respective

representatives before the U.K., Japanese, Chinese, and Taiwanese courts explaining why 

the foreign claims that Apple has filed and the relief that it seeks under foreign laws are

not duplicative of the claims and relief sought in the U.S. action. See, e.g., Wang Decl. 

¶¶ 6-7 (“The relief that Apple seeks is primarily in the form of injunctive relief, focused 

on ensuring that Qualcomm ceases its licensing practices and terms that are in violation 

of the Taiwan Fair Trade Act and/or constitute abuse of patents rights in Taiwan. To the 

extent Apple is seeking damages for past excessive royalties paid to Qualcomm, those 

damages would be limited to royalties paid for products sold in Taiwan, to the extent 

such royalties violate the Taiwan Fair Trade Act.”) (emphasis in original); Yang Decl. ¶ 5 

(“The claims in the China Actions are focused on Chinese patents, Chinese markets, and 

harm to competition in China. None of the China Actions seeks a determination of what 

a fair, reasonable, and non-discriminatory (“FRAND”) royalty would be for Qualcomm’s 

global patent portfolio.”) (emphasis in original); Yakura Decl. ¶ 2 (“. . . Apple has filed 

patent and antitrust cases in Japan, focusing on Japanese patents and harm in Japanese 

markets. None of those actions request the court to determine what a fair, reasonable, 

and non-discriminatory (“FRAND”) royalty would be for Qualcomm’s patents on a 

global portfolio-wide basis.”); Harrison Decl. ¶ 9 (“. . . the claims that Apple filed in the 

United States . . . are neither dispositive of the UK proceedings, nor do the US 

Proceedings and the UK Proceedings overlap in such a way that the outcome of the US 

Proceedings would resolve the issues and claims raised in the UK proceedings.”). 

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In light of these declarations, the Court concludes that any duplication evident in 

the U.S. actions and foreign actions is not so “unreasonable” that it suggests motive to 

harass or annoy. Although it is true that Apple’s foreign actions attack the same conduct 

underlying the U.S. action, the Court does not find that Apple acted unreasonably by 

filing the separate foreign actions. Apple’s declarations make evident that it has sought 

to challenge Qualcomm’s patent licensing practices and anticompetitive conduct territory

by territory. While Qualcomm may object to this litigation strategy as duplicative, the 

Court will not conclude that Apple’s exercise of its rights under foreign laws is vexatious. 

See 1st Source Bank v. Neto, 861 F.3d 607, 614 (7th Cir. 2017) (concluding that it was 

not vexatious for a party to pursue parallel litigation in Brazil where the party was 

exercising its contractual rights to protect its interests under foreign law). Because 

antitrust laws differ significantly from jurisdiction to jurisdiction, Apple had a legitimate 

reason to file separate foreign actions. See F.Hoffman-La Roche Ltd. v. Empagran S.A., 

542 U.S. 155, 167-68 (wherein foreign governments advocated for the Supreme Court to 

hold that U.S. antitrust law did not extend to the disputed conduct because their 

countries’ remedial schemes differed significantly from the U.S. system). 

Furthermore, the Court concludes that Apple also had and has a reasonable interest 

in challenging Qualcomm’s patents forum by forum. At oral argument, Apple

emphasized that Qualcomm’s practice of licensing its SEPs on a portfolio-level basis 

insulates Qualcomm from challenges to the validity or essentiality of its patents because

licensees do not know what patents are included in Qualcomm’s portfolio.10 

Accordingly, Apple brought patent claims in the various foreign suits as a means to 

verify that Qualcomm’s various patents are, in fact, valid and essential before Apple 

agrees to license Qualcomm’s global patent portfolio. See id. at 60-61 (“We want to look 

at the patents before we pay some extraordinary amount[.]”). That Apple wants to 

 

10 In its 2016 decision, the Korea Fair Trade Commission (“KFTC”) found that this practice violated 

Qualcomm’s FRAND commitment to ETSI. See infra Part D. 

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litigate any alleged infringement of Qualcomm’s SEPs before it accepts a global offer to 

license Qualcomm’s SEP portfolio, therefore, is yet another reasonable justification for 

filing the foreign actions. After all, and as neither party disputes, this Court cannot 

adjudicate or enforce the patent law of the U.K., China, Japan or Taiwan. See Microsoft, 

696 F.3d at 884 (“To be sure, if the district court had based its injunction in an 

expectation that U.S. patent claims could dispose of German patent claims, then it would 

have erred.”). As such and in light of these legitimate considerations, the Court 

concludes that any duplication between Apple’s U.S. action and foreign actions was not 

so unreasonable that it was vexatious and designed to only harass and annoy. 

2. “Other equitable considerations” do not justify the relief sought

Next, Qualcomm contends that Apple’s foreign lawsuits prejudice “other equitable 

considerations” because (1) they are a pretext for withholding royalties to gain leverage 

in licensing negotiations; (2) they threaten to delay a speedy and efficient resolution of 

the FRAND issues; (3) they will cause substantial inconvenience, unnecessary expense 

and a duplication of efforts; and (4) they could result in inconsistent rulings or a race to 

the judgment. Dkt. No. 92-1 at 27-29. The Court will address each of these assertions in 

turn. 

Qualcomm argues that the Court should conclude that Apple’s foreign actions are 

pretext for withholding royalties because “Apple has told Qualcomm that it plans to 

withhold from the Contract Manufacturers payments for all royalties—hundreds of 

millions of dollars each calendar quarter—until the global litigation has been resolved.” 

Id. at 27; see also Rogers Decl. ¶ 12, Dkt. No. 92-4 at 5 (stating that Qualcomm received

a letter from Apple on April 25, 2017, stating that “it will continue to withhold 

Qualcomm royalties for the indefinite future . . . until Apple’s litigation against 

Qualcomm ends.”). The Court, however, finds that the record before the Court does not 

support any assertion of pretextual motive. For all the reasons stated above, the Court 

finds that Apple has legitimate reasons for pursuing parallel actions in the U.S. and 

abroad, including Apple’s interest in vindicating its rights under foreign anticompetition 

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and patent law. Accordingly, the Court rejects Qualcomm’s contention as being 

unsupported by the facts before the Court. 

Second, Qualcomm argues that Apple’s foreign actions will “necessarily prolong 

the dispute and delay any final resolution.” Dkt. No. 92 at 28. The Court is unpersuaded 

by the conclusory nature of this argument. The Court will hear the parties’ respective 

motions to dismiss at the end of September 2017. The Court will hold a claim 

construction hearing on March 22, 2018. Dkt. No. 117. All discovery, including expert 

discovery, will conclude on May 11, 2018 and the final pre-trial conference will be held 

on September 28, 2018. Dkt. No. 116. Given that the Court had already set a number of 

key litigation dates and in light of the fact that Qualcomm has offered no reason why this 

timeline will necessarily be delayed by the parallel proceedings, the Court declines to 

find that the need for a speedy and efficient determination of this case requires enjoining 

Apple’s foreign suits and overcomes Apple’s legitimate interest in pursuing those suits. 

Third, Qualcomm argues that allowing the foreign actions to proceed will “lead to 

substantial inconvenience, unnecessary expense, and an absurd duplication of effort.” 

Dkt. No. 92 at 28. More specifically, Qualcomm contends that parallel proceedings will 

force the parties to “shuttle witnesses back and forth across the globe for duplicative 

testimony” and will “waste judicial resources” as Apple “uses courts around the world as 

sounding boards for its position on the same issue.” Id. The Court likewise finds this 

contention to be without merit. 

As an initial matter and for the reasons previously stated, the Court does not find 

that judicial resources will be wasted on the foreign actions. Apple’s foreign suits raise 

legitimate questions under foreign anticompetition and patent law that are distinct from 

the claims before the Court. Accordingly, the Court does not find that allowing the 

concurrent proceedings to move forward wastes judicial resources. 

In addition, the Court is also not persuaded that the resulting inconvenience or 

expense to Qualcomm justifies anti-suit relief. Any defendant who faces parallel 

litigation in a foreign suit will be inconvenienced. Any defendant who is sued in parallel 

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proceedings will bear the costs of defending themselves in each. Qualcomm, however, 

has offered no reason why the inconvenience or expense that it will incur as a result of 

these related proceedings are so extraordinary or substantial that they justify equitable 

injunctive relief. See China Trade & Dev. Corp. v. M.V. Choong Yong, 837 F.2d 33, 36 

(2d Cir. 1987) (“Since these factors [additional expense and race to judgment] are likely 

to be present whenever parallel actions are proceeding concurrently, an anti-suit 

injunction grounded on these additional factors alone would tend to undermine the policy 

that allows parallel proceedings to continue and disfavors anti-suit injunctions.”). 

Moreover, and even if Qualcomm had offered such reasons, the Court’s decision 

would not change. Because Apple’s U.S. and foreign actions are not identical and 

because the foreign suits assert Apple’s rights under foreign anticompetition and patent 

law, the Court is not prepared to conclude that any inconvenience or expense is so 

unnecessary or absurd that it overwhelms Apple’s right to pursue concurrent proceedings. 

Equity does not demand that a court enjoin a non-identical parallel proceeding simply 

because it is burdensome to defend oneself. Accordingly and absent any persuasive 

showing that Qualcomm is uniquely-situated such that it will be substantially 

inconvenienced and expensed by the concurrent proceedings, the Court concludes that 

this equitable consideration does not weigh in favor of an anti-suit injunction. 

Fourth, Qualcomm argues that “Apple’s duplicative lawsuits create a serious risk 

of inconsistent judgments” and that “Apple’s duplicative lawsuits raise related concerns 

that Apple is engaged in an improper ‘race to judgment.’” Dkt. No. 92 at 29. The Court 

disagrees. Both of these arguments ring hollow in light of the record before the Court 

and the context in which these proceedings have arose. 

One and for the reasons previously mentioned, because Apple’s U.S. and foreign 

complaints are sufficiently distinct, they do not raise concerns that Apple is, as 

Qualcomm says, “test[ing] the waters in each court and then opportunistically rac[ing] to 

judgment[.]” Id. Apple does not ask this Court for worldwide relief. It has not asked 

this Court to determine whether Qualcomm’s global license offer complies with FRAND. 

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Rather, it was Qualcomm who counterclaimed for a determination that its worldwide 

global SEP offer to Apple was FRAND. That Qualcomm asked for this relief, and not 

Apple, belies Qualcomm’s assertion that Apple’s foreign suits opportunistically seek to 

litigate the same or overlapping issues in five different jurisdictions. Qualcomm placed 

global relief on the table, not Apple. Accordingly, the Court is not prepared to find that 

the threat of granting Qualcomm the relief that it seeks, here, is reason enough to enjoin

the otherwise legitimate lawsuits that Apple filed elsewhere. 

Furthermore, the Court is also not persuaded that any risk of inconsistent rulings 

among the five jurisdictions justifies the extraordinary relief that Qualcomm seeks. 

Qualcomm suggests that it would be untenable or unfair for it to have to alter its behavior 

territory by territory in order to comply with potentially inconsistent rulings. Yet 

Qualcomm has already been the recipient of rulings regarding the anticompetitive nature 

of its business model that only apply throughout the territory issuing the ruling. Take 

China for instance. In 2013 the Chinese National Development and Reform Commission

(“NDRC”) conducted an investigation into Qualcomm’s licensing and baseband chipset 

supply practices and their effect on competition in the China markets. Yang Decl. ¶ 13. 

Upon completion of the investigation, China fined Qualcomm close to $1 billion dollars 

and Qualcomm issued a Chinese-specific rectification plan in order to comply with the 

resulting decision. Id. (stating that the rectification plan specifically addressed the 

royalties paid on Qualcomm’s 3G and 4G standard-essential Chinese patents for devices 

sold in China); see also Qualcomm’s Answer to First Amended Complaint, Dkt. No. 97 

¶ 201. That Qualcomm has already modified its licensing practices and conduct in order 

to conform to a judicial ruling that only applied to one jurisdiction significantly lessens

the weight of Qualcomm’s otherwise conclusory assertion that it would be placed in the 

“impossible position of attempting to alter is behavior in an attempt to satisfy conflicting 

rulings” in different countries. Dkt. No. 92 at 29. 

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As such, and especially in light of the fact that Apple’s foreign suits are not, as 

Qualcomm contends, identical, the Court concludes that any risk of inconsistent 

judgments does not weigh in favor of an anti-suit injunction. 

D. The effect on comity is not tolerable. 

“Comity is the recognition which one nation allows within its territory to the 

legislative, executive or judicial acts of another nation, having due regard both to 

international duty and convenience, and to the rights of its own citizens, or of other 

persons who are under the protection of its laws.” Gallo, 446 F.3d at 994 (internal 

citations omitted). “The extension of comity to a foreign judgment is neither a matter of 

absolute obligation, on the one hand, nor of mere courtesy and good will, upon the 

other.” Applied Med., 587 F.3d at 920. As such, it is not necessary to “calculate the 

precise quantum of [an] injunction’s interference with comity,” but rather it is enough to 

“estimate whether any such interference is so great as to be intolerable.” Microsoft, 696 

F.3d at 886. The comity inquiry, therefore, is flexible, fact-specific, and context-specific. 

Id.

Qualcomm contends that enjoining the foreign suits will have no impact on comity 

because “[a]t its core, this is a dispute between two California corporations concerning 

licensing negotiations that occurred primarily in California.” Dkt. No. 92-1 at 30. Since 

the key issue in each foreign action is Apple’s “claim as a third-party beneficiary of 

Qualcomm’s contractual commitment to ETSI” and because no foreign government is 

involved, Qualcomm argues that there is no negative effect on comity. Id. Stated 

differently and in Qualcomm’s own words, “Ordering one American corporation to stop 

pursuing duplicative foreign actions concerning the contractual relationship with another 

American corporation will have no adverse impact on comity.” Id. 

Apple argues the opposite. According to Apple, issuing the anti-injunction would 

plainly offend comity concerns because it would be akin to “forbid[ding] a foreign court 

from adjudicating legal issues under its own law.” Dkt. No. 108 at 28. Specifically, 

Apple avers that it would be improper to prevent the foreign courts from adjudicating the 

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infringement and antitrust-related claims or even from delaying adjudication of either 

type of claim. Id. In reply, Qualcomm emphasizes that the anti-suit injunction does not 

ask this Court to adjudicate the foreign patent and foreign anti-trust claims, but rather, 

asks this Court to prevent Apple from litigating “the same private contractual dispute 

over and over again around the world.” Dkt. No. 114 at 11. As such Qualcomm asserts, 

and because the “contractual FRAND determination in this action will resolve the claims 

and issues in the foreign actions based on the same FRAND contract” any “remaining 

foreign issues can be resolved by the foreign courts in due course, after this Court’s 

resolution of the global FRAND issues.” Id. (footnote omitted). 

For many reasons, the Court disagrees that enjoining the foreign suits would have a 

tolerable impact on comity. Throughout its briefing, Qualcomm emphasizes that this is a 

“private contractual dispute” between Apple and Qualcomm. Accordingly, and to the 

extent that private commercial obligations do not implicate public concerns, Qualcomm 

argues that an anti-suit injunction would have no effect on comity. See Microsoft, 696 

F.3d at 887 (holding that district court did not abuse its discretion in granting anti-suit 

injunction because case involved private dispute under Washington state contract law and 

did not raise any public international issue). Yet given the specific claims raised in 

Apple’s foreign lawsuits — which include antitrust and patent claims — and given the

numerous lawsuits filed against Qualcomm by international bodies, the Court finds it 

improper to demote this action to no more than a “private contractual dispute.” 

As Qualcomm reiterated throughout oral argument, Qualcomm’s FRAND 

commitment to ETSI is global. Indeed, Apple is not the only third-party beneficiary with 

an interest in enforcing Qualcomm’s contractual obligations to ETSI. ETSI’s IPR policy, 

in fact, plainly states that any willing licensee is entitled to license Qualcomm’s 

intellectual property at a FRAND rate. There are, therefore, any number of corporations 

in China, Japan, the U.K., and Taiwan that are similarly-situated to Apple and that are 

similarly entitled to benefit from Qualcomm’s FRAND promise to ETSI. Viewed in this 

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light, it is far from accurate to say that this is a paradigmatic “private contractual dispute”

that only implicates the rights and obligations among Apple and Qualcomm. 

Moreover and because Qualcomm’s promises to ETSI are global in scope, whether 

Qualcomm is upholding its FRAND commitment has global consequences and is of 

global significance. Long before Apple ever filed suit in this Court, adjudicative bodies 

in the countries implicated by this anti-suit injunction began to investigate Qualcomm’s 

licensing practices.11 In 2009, the Korea Trade Fair Commission imposed a corrective 

order and fined Qualcomm $208 million dollars “[f]or abusing its dominant position by 

charging discriminatory royalties and offering conditional rebates.”12 Also in 2009, the 

Japan Fair Trade Commission issued an order finding that Qualcomm had violated 

Article 19 of the Anti-Monopoly Act by coercing Japanese manufacturers to accede to a 

FRAND-encumbered license agreement that guaranteed Qualcomm “royalty-free licenses

for the intellectual property rights of the Japanese Manufacturers” and that prevented the 

Japanese Manufacturers from “assert[ing] their intellectual property rights against 

Quaclomm[.]”13 In 2014 and as explained in further detail above, the Chinese National 

Development and Reform Commission concluded that Qualcomm’s licensing practices

violated China’s Anti-Monopoly Law. In 2015, the European Commission issued two 

“Statements of Objections” alleging, among other matters, that Qualcomm abused its 

dominant position in the baseband chipset market by paying a “major smartphone and 

tablet manufacturer” significant amounts of money in order to be the company’s 

 

11 The following decisions were specifically identified in Apple’s first amended complaint. See FAC 

¶¶ 200-06. In its answer, Qualcomm acknowledges the existence of each of these cases, but refers the 

Court “to the foregoing documents for their contents.” Answer to FAC ¶¶ 200-06. Thus, the Court 

finds it proper to take judicial notice of the contents of these decisions and the official documents 

explaining the grounds for the decisions. 

12 Qualcomm’s Abuse of Market Dominance, KFTC (July 23, 2009), 

http://www.ftc.go.kr/eng/solution/skin/doc.html?fn=d83c42bbd9236e343cf78a7250d57b2292383b1f0ca

3eb1d83cccaf4e6854dd2&rs=/eng/files/data/result/files/bbs/2009/. 

13 Cease and Desist Order against Qualcomm Incorporated, JFTC (Sept. 30, 2009), 

http://www.jftc.go.jp/en/pressreleases/yearly-2009/sep/individual-000038.files/2009-Sep-30.pdf. 

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exclusive manufacturer of baseband chipsets.14 In 2017, the KFTC issued a decision that 

specifically found that Qualcomm had violated its FRAND commitment to ETSI by (1) 

refusing to license rival chipset makers; (2) coercing manufacturers to sign unfair license 

agreements by linking Qualcomm’s chipset supply with their patent license agreements; 

(3) and by offering their “comprehensive portfolio license” without “undergoing a 

reasonable value assessment process.”15 And finally, as of the date of Apple’s complaint,

the Taiwanese Fair Trade Commission had begun to actively investigate Qualcomm’s 

business model as well. FAC ¶ 208; Answer to FAC ¶ 208. 

That multiple sovereign and international bodies have concluded or alleged that 

aspects of Qualcomm’s business model are anticompetitive demonstrates that this dispute

implicates global public concerns in a way not evident from the record in Microsoft v. 

Motorola. Through the U.S. and foreign actions, Apple has specifically alleged that 

Qualcomm’s licensing practices are anticompetitive under U.S. antitrust law and 

anticompetition laws in the U.K., China, Japan, and Taiwan. That anticompetitive 

conduct is, moreover and as both parties concede, inextricably intertwined with 

Qualcomm’s FRAND obligations to ETSI. Enjoining Apple, therefore, from proceeding 

with its foreign suits, or even just part of them, would effectively deprive the U.K., 

China, Japan, and Taiwan of its jurisdiction to consider whether licensing agreements that

Qualcomm executes within those jurisdictions, have anticompetitive effects in those

territories. See China Trade, 837 F.2d at 35-36 (citations omitted) (“The fact that the 

injunction operates only against the parties, and not directly against the foreign court, 

does not eliminate the need for due regard to principles of international comity, because 

 

14 Press Release, Antitrust: Commission Sends Two Statements of Objections on Exclusivity Payments 

and Predatory Pricing to Qualcomm, European Commission (Dec. 8, 2015), http://europa.eu/rapid/pressrelease_IP-15-6271_en.htm. 

15 KFTC imposes sanctions against Qualcomm’s abuse of SEPs of mobile communications, KFTC 

(Dec. 28, 2016), 

http://www.ftc.go.kr/eng/solution/skin/doc.html?fn=0575fbdccbed8ced77b565db3dc7d32ffc7051e67ef1

09afad6d4f1cd780d6e8&rs=/eng/files/data/result/files/bbs/2017/. 

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such an order effectively restricts the jurisdiction of the court of a foreign sovereign[.]”). 

Yet such a result is intolerable given that numerous foreign bodies, including those slated 

to adjudicate the foreign suits, have proactively sought to investigate and terminate the 

anticompetitive effects of Qualcomm’s licensing and patent practices in their respective

jurisdictions. 

In sum, this is not a case where the only assertion of comity is “vague and 

omnipotent.” See Kaepa, Inc. v. Achilles Corp., 76 F.3d 624, 627 (5th Cir. 1996). The 

record before the Court demonstrates that the boundaries of this dispute are not limited to 

the United States. Multiple sovereign states and bodies have posed legal challenges to 

Qualcomm’s business model on the belief that Qualcomm’s conduct in their respective 

jurisdictions has an adverse effect on competition in their territories. To issue an anti-suit 

injunction, therefore, would directly impede upon the ongoing efforts in the U.K., China, 

Japan, and Taiwan to assess the anticompetitive effects of Qualcomm’s licensing and 

chip practices on their markets. Accordingly, the Court finds that the impact on comity is 

not tolerable and weighs against the issuance of an anti-suit injunction. 

IV. CONCLUSION 

For the foregoing reasons, and because the Court finds that none of the three antisuit factors weigh in favor of granting Qualcomm the injunction that it seeks, the Court 

DENIES Qualcomm’s request for an anti-suit injunction. 

IT IS SO ORDERED. 

Dated: September 7, 2017

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