Why Apple's 5G iPhones, iPads Have Been Banned In Colombia

Apple Inc's AAPL iPhones and iPads capable of communicating using 5G technology have been banned in Colombia.

What Happened: The 5G-capable iPhones, iPad devices have been banned from sale and import in Colombia following an order from a court, which ruled that Apple’s products infringe on a patent owned by Telefonaktiebolaget LM Ericsson ERIC, reported Apple Insider.

The court in the South American nation issued an injunction on July 6 impacting Apple Colombia S.A.S — the Tim Cook-led company’s subsidiary in Colombia.

Under the issued injunction, Apple would reportedly be banned from importing, selling, advertising, or otherwise commercializing any products infringing the patent — effectively any 5G iPhone or iPad.

Why It Matters: In April, the Juzgado 042 Civil del Circuito de Bogotá in the Colombian capital said that Apple’s 5G hardware infringes on a claim that is deemed standards essential to 5G and granted to Ericsson in 2019. According to the court, the patent is valid until December 2037.

Ericsson then reportedly posted a bond of $50,000 for enforcement to take place and the injunction followed.

The iPhone maker is appealing the ruling and is trying to fight the Colombia order by demanding antisuit damages in the Eastern District of Texas. 

Apple says the Colombian injunction gives Ericsson "economic and logistical leverage" and asked the judge to rule that Ericsson must “indemnify Apple from any fines, fees, penalties, and costs it incurs as a result of the Colombian injunction."

The U.S. tech giant’s move takes the form of an antisuit damages claim instead of an antisuit injunction because the judge in Colombia ruled that Apple can't seek or enforce the latter from a foreign country to prevent or restrict enforcement of the preliminary injunction, according to Apple Insider.

Price Action: On Friday, Apple shares closed 0.5% higher at $147.04 in the regular session and fell 0.2% in the after-hours trading. On the same day, Ericsson shares closed 0.4% lower at $7.56 in the regular session, according to data from Benzinga Pro.

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