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Brexit and Apple in the limelight

06744 CC Trader Talk V2

European equities finished the session in the green on Tuesday ahead of a parliamentary vote on British Prime Minister Theresa May’s withdrawal agreement with Brussels. As per expectations U.K Prime Minister May lost the vote by a wide margin after lawmakers had their say on four amendments to the deal. According to reports, the prime minister faces a leadership challenge over the defeat of her Brexit deal in the Parliament yesterday. Meanwhile, the former UKIP leader Nigel Farage expects the Article 50 to be extended and a push for a second Brexit referendum to intensify.

The DAX gained 0.33% with Heidelberg Cement leading the gains as it rose just over 2%. Meanwhile, the CAC 40 advanced 0.49% as Capgemini jumped 3.67%. In London, the FTSE 100 climbed 0.58%; private equity company 3i was the top performer, adding 2.55%.

Apple Loses VirnetX appeal

A United States appeal court rejected Apple Inc’s appeal against a 2016 ruling that compelled it to pay damages of $302.4 million to VirnetX Holding Corp, according to the opinion published on its website.

The court dismissed Apple’s appeal in a short judgment by using a little-known rule that enables it to give opinions without substantiating them if certain conditions are fulfilled. VirnetX was awarded the damages in October 2016 by a Texas court in spite of the Patent and Trademark Office finding that several of its patents were invalid. VirnetX’s shares spiked up over 40% following the news.

Apple wins this time

A German court rejected Qualcomm’s patent lawsuit against Apple on the grounds that it was unfounded.

Qualcomm filed the lawsuit as it alleged that Apple’s instalment of iPhone chips infringed its patent, which Apple denied. The case hinged on the two companies’ different interpretations of the "bulk tension" of the relevant patent. However, the regional court in the city of Mannheim disagreed with Qualcomm and found for Apple, although the former may still appeal the decision. A court spokesman said that the ruling is the first of six patent suits that filed by Qualcomm in Mannheim and that a decision on the second suit could be expected next month.

A Munich court previously awarded Qualcomm an injunction to stop the sale of iPhones in Germany after finding that Apple was infringing several of its patents. However, it also stated that Qualcomm would have to initiate separate proceedings to enforce the injunction and that the posting of security was a necessary prerequisite, which the chipmaker duly did at the beginning of this year.

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