Apple is 'Not in Talks' to Settle Legal Dispute With Qualcomm and is 'Gearing Up For Trial'

Discussion in 'MacRumors.com News Discussion' started by MacRumors, Nov 7, 2018.

  1. MacRumors macrumors bot

    MacRumors

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    Apple and Qualcomm are not in talks "at any level" to settle a wide-ranging legal dispute spanning multiple countries, according to Reuters.

    [​IMG]

    The report cites an unnamed source on Apple's side who said "there is absolutely no meaningful discussion taking place between us and Qualcomm, and there is no settlement in sight," with Apple "gearing up for trial."

    The case is set to go to trial early next year, should the companies fail to reach a resolution, according to the report.

    Qualcomm CEO Steve Mollenkopf had told investors on the company's quarterly earnings call in July that the two companies were in talks to resolve the litigation. "We hope that through the combination of either those paths, we could get to a resolution, and we're confident that we will," he said at the time.

    The saga began when Apple sued Qualcomm in January 2017 for allegedly withholding nearly $1 billion in royalty rebates as retaliation for Apple "responding truthfully to law enforcement agencies investigating them," referring to the FTC's investigation into Qualcomm's anticompetitive business practices.

    Qualcomm countersued Apple in April 2017, accusing the company of failing to engage in good faith negotiations for a license to its 3G and 4G standard essential patents on fair, reasonable, and non-discriminatory terms. Qualcomm also accused Apple of encouraging regulatory attacks on its business in multiple countries.

    Qualcomm's countersuit said Apple "could not have built the incredible iPhone franchise" without relying upon the chipmaker's "fundamental cellular technologies." Qualcomm went as far as alleging that Apple "contributed virtually nothing to the development of core cellular technology."

    Qualcomm also accused Apple of making "misleading statements" about the performance of Qualcomm and Intel modems in iPhones. In testing, iPhone 7 models with Qualcomm's modem achieved faster wireless speeds than those with Intel's modem, but Apple said there was "no discernible difference" between the two.

    Apple broadened its lawsuit against Qualcomm in June 2017, accusing the chipmaker of "double-dipping" with unfair patent licensing agreements. Apple said Qualcomm charged it royalties based on a percentage of the entire iPhone's value, despite supplying just a single component of the device - the wireless modem.

    The legal dispute encompasses several other claims, including Qualcomm's allegation that Apple shared Qualcomm's trade secrets with Intel to help improve its LTE modems, allowing Apple to stop using Qualcomm's modems.

    Qualcomm was the exclusive supplier of wireless modems in iPhones until the iPhone 7 and iPhone 7 Plus, when Apple added Intel as a secondary supplier. Likely due to this legal dispute, Intel became the exclusive supplier of wireless modems starting with the iPhone XS, iPhone XS Max, and iPhone XR.

    Apple is reportedly $7 billion behind in royalties owed to Qualcomm as it withholds payments as a result of the legal dispute.

    Article Link: Apple is 'Not in Talks' to Settle Legal Dispute With Qualcomm and is 'Gearing Up For Trial'
     
  2. aUniqueName macrumors newbie

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    #2
    Apple should just buy Qualcomm already and be done with it...
     
  3. bladerunner2000 macrumors 68020

    bladerunner2000

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    #3
    Is there any deal in which Apple hasn't let it go sour? Jesus.. Samsung spat took years to finish... How long is this one going to last?
    --- Post Merged, Nov 7, 2018 ---
    Apple is not entitled to just buy any company you think it should.

    Why do you think this way?
     
  4. toukale macrumors newbie

    toukale

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    #4
    Not surprising at all. Right now Apple have little to lose and everything to gain. A win will bring much competition in the market, which will bring down costs etc.
     
  5. aUniqueName macrumors newbie

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    #5
    Apple is absolutely entitled to buy any company they want if the company is willing to sell.
     
  6. avanpelt macrumors 68030

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    #6
    They can't buy something that's not being offered for sale.
     
  7. bladerunner2000 macrumors 68020

    bladerunner2000

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    #7
    No, I want to know why YOU think they can just steamroll through the tech industry and buy everyone out.
     
  8. aUniqueName macrumors newbie

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    1) they have the money to
    2) the USA a free country where free commerce is allowed (you live in china or something?)
    3) everything is for sale if the price is right - that's just the facts of life buddy
    4) its not "steamrolling" if its a mutual agreement
    5) I want to know why you are so hostile to the idea of apple buying other companies???
     
  9. Baymowe335 macrumors 68040

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    #9
    Apple doesn't want a capital intesive, largely commoditized hardware business.

    The value is in the iPhone...not the modems.
     
  10. notabadname macrumors 65816

    notabadname

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    Seems to me, of the two feuding children, that Qualcomm kind of “started” it, with their initial withholding of $1 Billion in Royalty rebates. Apple is not alone in the claims of Qualcomm’s anticompetitive practices. This is a no-brainer IMO. As was already said, Apple has way more to gain than lose. I think Qualcomm is the one that got greedy and “soured” the relationship. We should know the winner in a couple of years LOL. In either case, Qualcomm has already lost, because they lost the account of one of the biggest users of their Hardware. So big, that they make whatever customer Apple partners with as an alternate a juggernaut that Qualcomm has to compete with. Big Win for Intel, big loss for Qualcomm.
     
  11. Baymowe335 macrumors 68040

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    Why wouldn't it have gone sour with Samsung? Samsung copied the iPhone.
     
  12. bladerunner2000 macrumors 68020

    bladerunner2000

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    Because Apple already is a monopoly, it doesn't need to be even more so.
     
  13. justperry macrumors G3

    justperry

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  14. wigby macrumors 68000

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    They are a monopoly of their own products just like Microsoft is a monopoly of Surface products, Google has a monopoly on Pixel laptops and Samsung has a monopoly on Galaxy phones. That is not a monopoly that harms consumers since healthy competition exists outside of iPhone and Mac products.
     
  15. rjohnstone macrumors 68040

    rjohnstone

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    #15
  16. Jsameds macrumors 68040

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    A monopoly in which market?
     
  17. aUniqueName macrumors newbie

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    #17
    Apple is far from a monopoly, there are dozens if not hundreds of pc and phone manufacturers out there for you to choose from - you could be using a windows PC and an android phone. But I see in your signature you are using a "Hackintosh"... you know why its called "Hackintosh"? cause when you run that, you are allowing hackers easy access into your icloud account...

    I guess you don't realize that when you buy apple hardware with their software, what you are paying for is the most secure, hacker resistant ecosystem on the planet. They even deny governments' ability to access your devices. But hey, you may not care about those things so you should probably switch to windows and android.
     
  18. rjohnstone macrumors 68040

    rjohnstone

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    #18
    The FTC and DOJ will disagree with you on points 2 and 3.
    All sales of public companies require approval from the government. (Broadcom attempted take over of Qualcomm is a good example)
    Apple would have to attempt a hostile takeover as I doubt Qualcomm would ever agree to a buyout from Apple.
     
  19. 840quadra Moderator

    840quadra

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    #19
    I have a hard time with this. I like Qualcomm and want them to do well and stay an active part of the Tech industry. At the same time, I see Apple’s viewpoint on not wanting to pay them a precentage of earnings per device, as opposed to a flat per device fee.

    I don’t know how patent law works, so I can’t really say if Qualcomm is wrong, but what they are doing just doesn’t sound fair. This is especially apparent to me based on how other companies have similar complaints.
     
  20. justperry macrumors G3

    justperry

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    That goes beyond my knowledge of patents.
     
  21. macfacts macrumors 68030

    macfacts

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    Microsoft does not have a monopoly on stores that sell Windows apps. Samsung doesn't have a monopoly on stores that sell android apps.
     
  22. KPandian1 macrumors 65816

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    #22
    Apple is not a monopoly of any kind.

    Meanwhile, that judge should force Apple to license out the MagSafe technology to everyone. It has been about 13 years since the original patent.
     
  23. Vanilla35 macrumors 68040

    Vanilla35

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    Man we are never going to get those good chips back, are we?
     
  24. barkomatic macrumors 68040

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    It does sound like Qualcomm is being greedy, but then again Apple is hardly innocent of that either. It all turns out to be a shame, since the Qualcomm modems are far superior to anything Intel currently has. The only hope is that with all that Apple money Intel will be able to reach parity with Qualcomm by next year.
     
  25. yeah macrumors 6502a

    yeah

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    Well the modem plays a huge role in phones nowadays, even though most consumers and even tech enthusiasts overlook the potential and capability of modern modems and LTE/NR networks. This is why they should move to in-house modem design and create spectacular antenna and RF designs, just like their insane speeds of the A12X processor in the new iPads.

    What is the value of an iPhone when you have a poor-performing modem like the older Intel chipsets?
     

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