Qualcomm plans to release Apple internal documents to prevent antitrust ruling

WASHINGTON (Reuters) - The U.S. Federal Trade Commission on Thursday objected to Qualcomm's plan to release internal Apple documents in an effort to block enforcement of a ruling in a May antitrust lawsuit.

Qualcomm filed the document with U.S. District Judge Lucy Koh on Tuesday as it seeks to appeal a ruling that would require it to change its business model. Apple outlined its goals of "gaining advantage by building pressure" and "harming Qualcomm financially" in an internal presentation.

The slides were part of Qualcomm's opening statement in a separate civil lawsuit filed against Apple in April, but were never submitted in Qualcomm's previous battle with the FTC. If Koh accepts them, they will become part of the record for the higher court to evaluate when Qualcomm eventually appeals.

FTC officials said Thursday that the slide submission was "improper, unfair and prejudicial."

The slides were part of Qualcomm's public arguments in the Apple case, in which the company's lawyers believe Apple is targeting Qualcomm's patent licensing model. In them, Apple discussed how to "devalue" the types of patents held by Qualcomm and "reduce the net amount of royalties Apple pays to Qualcomm."

The FTC said it was not given a formal opportunity to object to the slides.

"If the document survives a high-profile opposition, Apple's witnesses will likely testify about the context and purpose of the document and the meaning of the quoted language," the FTC wrote Thursday.

Qualcomm, which makes modem chips that help mobile phones connect to wireless data networks, is seeking to freeze Koh’s ruling, which could reduce its patent royalties from several dollars to a few cents per phone if it fails.

Smartphone maker LG Electronics has objected to Qualcomm's move to freeze the ruling. The phone maker said it is negotiating with Qualcomm on chip supply and patent licensing agreements, and that it could be forced to sign an unfair agreement again if Koh's protections are not implemented. The FTC also opposes Qualcomm's move.

On Tuesday, Qualcomm responded to LG's allegations, saying it would continue to supply chips to the South Korean phone maker even though licensing talks had been suspended.