Apple Sues Qualcomm for $1 Billion in Unpaid Royalty Rebates [Updated]

Discussion in 'MacRumors.com News Discussion' started by MacRumors, Jan 20, 2017.

  1. MacRumors macrumors bot

    MacRumors

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    Following an FTC complaint alleging Qualcomm engaged in anticompetitive patent licensing practices, Apple has filed a lawsuit against Qualcomm claiming the company has charged unfair royalties for "technologies they have nothing to do with."

    [​IMG]

    According to a statement Apple shared with several news sites, Qualcomm "reinforces its dominance" through exclusionary tactics and high patent licensing fees. Apple's full statement is below:
    In the lawsuit, filed in a federal district court in the Southern District of California, Apple accuses Qualcomm of using its position as the supplier of a key iPhone component to drive up patent licensing fees.

    Qualcomm supplies the LTE modems used in Apple's line of iPhones, and up until 2016, the company was Apple's sole supplier. The iPhone 7 and the iPhone 7 Plus use modems from both Qualcomm and Intel.

    Qualcomm reportedly forced Apple to use its LTE chips exclusively in iOS devices and pay a percentage of the total average selling price of an iPhone for access to Qualcomm patents.

    Qualcomm is supposed to provide Apple with quarterly rebates, but has failed to do so for the past year because of Apple's participation in an antitrust investigation against Qualcomm in South Korea. That investigation led to an $850+ million fine against Qualcomm for anticompetitive licensing practices.

    Apple is seeking $1 billion in rebate payments that have been withheld.

    Earlier this week, the United States Federal Trade Commission filed a lawsuit against Qualcomm that focused in part on Apple and Qualcomm's licensing deals. According to the FTC, Qualcomm imposes "onerous and anticompetitive supply and licensing terms" on its smartphone partners by abusing its patent portfolio.

    Qualcomm has said it has "grave concerns" about the lack of evidence supporting the FTC's allegations and has promised to defend itself in federal court.

    Update 1/25: Apple has also filed two lawsuits against Qualcomm in Beijing. The first, which seeks 1 billion yuan ($145.32 million) in damages accuses Qualcomm of abusing its clout in the chip industry. The second claims Qualcomm has not fulfilled promises to license standard essential patents fairly.

    Article Link: Apple Sues Qualcomm for $1 Billion in Unpaid Royalty Rebates [Updated]
     
  2. Tycho24 Suspended

    Tycho24

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  3. samcraig macrumors P6

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    Both companies are bullies.
     
  4. imran5720 macrumors regular

    imran5720

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  5. Bigsk8r macrumors 6502

    Bigsk8r

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    Get the popcorn going, this could get interesting...
     
  6. BasicGreatGuy Contributor

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  7. gotluck macrumors 603

    gotluck

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    #7
    still want qualcomm modems in my iphone

    no intel for me yet!
     
  8. Sevanw Suspended

    Sevanw

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    Lol, Apple, hustling till it's last breath. Get a life
     
  9. r03dz macrumors member

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    #9
    This is hilarious. Apple is a huge bully of a company.
     
  10. oneMadRssn macrumors 601

    oneMadRssn

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    Someone's gotta stop these patent trolls.

    </s>
     
  11. citysnaps macrumors 601

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  12. rimcrazy macrumors member

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    #12
    Gee, now if Samsung would only buy Qualcom then Apple would only have 1 huge lawsuit instead of 2!
     
  13. Kaibelf Suspended

    Kaibelf

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    #13
    Get a life? Any person or company worth its salt should expect a contract to be honored. If the payments are due, then they should be paid, period. Maybe your word is mud, but to normal people a deal is a deal.
     
  14. Orlandoech macrumors 68040

    Orlandoech

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    #14
    Funny how when Apple sues someone, people like you say "Good for Apple", then when people/companies sue Apple it's "frivolous case".
     
  15. Wowereit macrumors 6502a

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    #15
    That's purposefully misleading.
    Qualcomm is not charging Apple royalties for Apple's own technologies.
     
  16. BasicGreatGuy Contributor

    BasicGreatGuy

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    #16
    Some may show bias that way, but I judge each case on its own merits (or lack thereof).
     
  17. lowendlinux Contributor

    lowendlinux

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    #17
    Hey look two big companies with deep pocket and good lawyers going to court..for another decade :rolleyes:
     
  18. Johnny Vegas macrumors member

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    #18
    Thank goodness! Go get them Apple, sue their pants off! I'll just wait patiently for the iPhone price to drop as a result ;)
     
  19. cariacou macrumors 6502a

    cariacou

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    #19
    not a good time to be working at Qualcomm
     
  20. WRChris macrumors 6502a

    WRChris

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    #20
    You can't blindly say all lawsuits are frivolous just because some are. Did you read the article or skip to the comments?
     
  21. cfunk macrumors newbie

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    #21
    Well, they are to an extent. Qualcomm is getting royalties based on the selling price. The more non-Qualcomm tech they put into the iPhone, potentially driving up the price, the more Qualcomm receives, even though the cost of their components in the phone is likely decreasing.
     
  22. Headrush69 macrumors member

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    #22
    If their royalties are based on a percentage of the phone, they actually are.

    If I introduce a new phone and the only difference is has a bigger screen for example, why should any patent company get more $$$ for the exact same chip used?
     
  23. blacktape242 macrumors 68000

    blacktape242

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  24. kognos macrumors member

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    #24
    Apple using Intel is starting to make sense now.

    I get that it's all about saving a buck here and there. But seriously, Qualcomm wanting a slice of the whole iPhone pie does just sound unreasonable to me. Usually these kinds of things are licensed simply: Apple pays $2.43 a chip from Qualcomm (for example, I have no idea the actual $$). Why try to eat into the whole pie? That's not their business, so that's where I tend to agree with Apple.

    I don't have any love for Intel either, but Intel's problem isn't solely the chip, it's that they too would have to license from Qualcomm to get the same CDMA coverage that I believe they exclusively own. And then I'm sure they aren't licensing on a item-by-item basis, they would again want a cut of the end product. Shady?
     
  25. Naraxus macrumors 6502a

    Naraxus

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    #25
    "According to a statement Apple shared with several news sites, Qualcomm "reinforces its dominance" through exclusionary tactics and high patent licensing fees."

    This is rich coming from the company who's made their entire fortune through exclusionary tactics & patent troll licensing fees.
     

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132 January 20, 2017