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I didn't realize that Huawei contributed. Learning something new every day :)

Huawei is a big contributor to cellular standards, as they make both the user and network side of things. Not long ago they were second only to Sony Ericsson on carrier network equipment, IIRC.

You might remember me posting this list of major contributors and their starting negotiation rates... all based off device price of course.

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I couldn’t find a perfect answer, but Qualcomm may be valued around $85B? Why doesn’t Apple just buy the company, dissolve it, fire it’s executives, suck it’s patents out, hire it’s engineers and tear down the ugly duckling from the inside out. And they’d still be able to collect royalty from Samsung and possibly renegotiate Samsung’s prices to Apple. I’m so glad I don’t run Apple, I’d actually consider this.

That's one the dumbest thoughts ever on the macrumors forum and shows a complete lack of understanding even the most basic business concepts.
 
None of the things you mentioned
For the same reason you cannot do that without also licensing from Nokia, Ericsson, LG, Samsung, and many others who invented the standard.

This is not that difficult to understand folks. Companies spent billions and years creating what we all use today around the world. They deserve to be paid for it.



As had been pointed out here many times over the years, modem chips do not come with or pay for licenses for all the IP you use on them. So no, there is no double payment.

Think of it like this: anyone can make a CPU. But CPUs don't come with an iOS or Windows license.



You've already started off badly. There's nothing wrong with the way they all charge. Heck, China even recently reaffirmed the method, ordering sellers of phones in China to pay Qualcomm a percentage of their device price.



A lot of the world already does. Taxes are a percentage of income. Franchise fees are a percentage of profits. App store fees are a percentage of product price.

Heck, Apple themselves license their MFi program by percentage of your device price.

Many patents in fact are licensed this way.



Utter nonsense. The companies behind cellular standards are not sitting around doing nothing.

As for our hard earned money making someone a profit, that's ironic. Apple has a quarter trillion in raw profit made off us, stashed away doing nothing.

Even if Apple got a lower royalty, nobody thinks they are going to pass on the savings to us. They'll just stash away more profit for themselves.


None of the things you mentioned are covered by FRAND. Patents on technologies which become standards and this are inherently necessary to follow in order to make a product have a different set of rules which prevent them from becoming a monopoly/price gouging/unfairly charging for its IP.

You are welcome to make any software for the iPhone and release it not on Apple’s App Store, and people can use it. There is nothing about building an app for Android that requires you to pay a liscensing fee to Apple.

There is no possibility for innovation here. In order to be able to connect to the network, you must follow Qualcomm’s standard. So even if you find another way to do it, you still have to pay Qualcomm. This is very different from how the majority of parents work. Thus, this is a very special situation.

Also, you make repeated claims only Apple is complaining. Meanwhile, the FTC filed s complaint in January, and they’ve been under investigation for royalty abuse in Japan, Europe and Taiwan. Now Samsung and Intel are also coming to join the suit.

So basically, a huge portion of anyone who interacts with Qualcomm is suing them. Keep up the blinding hatred, its getting you places.
 
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If there is an import ban, Apple could buy Qualcomm, fire its management, award itself Qualcomm licenses, and sell the company.

Or they could just continue to Duke it out in court.
 
None of the things you mentioned are covered by FRAND. Patents on technologies which become standards and this are inherently necessary to follow in order to make a product have a different set of rules which prevent them from becoming a monopoly/price gouging/unfairly charging for its IP.

Patents are still patents. Charging by device price for cellular royalties has been going on for over twenty years.

Even the DOJ ruled that this was not an antitrust issue and approved it long ago.

image.png



Also, you make repeated claims only Apple is complaining. Meanwhile, the FTC filed s complaint in January, and they’ve been under investigation for royalty abuse in Japan, Europe and Taiwan. Now Samsung and Intel are also coming to join the suit.

Try reading those complaints. They're not about the device pricing method, but over things like requiring licensing the full patent suite instead of a subset.

Apple complains about the device rate only because they're the only ones who didn't contribute. The others who did contribute, charge that way themselves.

That's why Apple has gotten smart and is now trying to contribute towards 5G standards. As they would put it, they need to put on their big boy pants now.
 
I'm confused... Since Intel is the one that makes the supposedly infringing chipset Apple is using, shouldn't Qualcomm be suing Intel?
 
For the same reason you cannot do that without also licensing from Nokia, Ericsson, LG, Samsung, and many others who invented the standard.

This is not that difficult to understand folks. Companies spent billions and years creating what we all use today around the world. They deserve to be paid for it.

Nice way to dodge the real question by selectively quoting from my post which literally SAID they deserved to be paid, but to be paid fair and just for their contributions just as the others you mention are. That's why they're not a part in this and Samsung is taking Apple's side.

Wireless-Charging-Pie.jpg


You didn't answer my question about why Qualcomm deserves to be paid a percentage of the entire device the modem is put in and not for the percentage on the modem itself? Even when using a competitors technology only using their IP.

They don't deserve to profit off the money Apple is putting into iPhone developments independent of the modem. They deserve to profit from their inventions: not Samsung's or Apples. It's think it's absolutely ridiculous and can't wait for this issue to be brought up again: a lot can change in 15 years and a lot in wireless has.

They are changing royalties (by reducing rebates) for exclusivity. Just because it's "a rebate" doesn't mean it's not an attempt to control the market.

I personally think Qualcomm is attempting to prevent others from contributing towards future wireless technology in an effort to maintain its leadership. Anticompetitive.

They've already been found guilty of refusing to license their standard essential patents and forcing people to pay more for what they don't need, why is not believable they would continue such nefarious acts?
 
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Qualcomm is essential and American like Boeing, Lockheed, GE, etc. while Apple is just a front for off-shore made, off-shore tax evasion, license payment evasion and the list goes on. If Qualcomm prevail American engineering talent and jobs will be saved otherwise fanboys and their future generations will all be jobless or have low end retail jobs if Apple prevail.
 
That isn't the job of Apple - Intel designs, manufacturers and sells those components to Apple therefore it is on Intel's own shoulders to ensure the correct royalty are paid.

Nope, chip makers do not pay for the phone maker royalties in most cases. That's a common misconception here, though.

Anyone wondering why Qualcomm isn't going after Intel with the same vigour as they are going after Apple?

Because Intel already has a license for the non-FRAND Qualcomm IP they use in their silicon. But they're not the ones who have to pay for the FRAND IP used to make the chip run. That's what phone makers do.

anyone feel as though this is a shake down as Qualcomm is being screwed from all directions because in the long run the only thing hold Samsung to using Qualcomm is CDMA2000 but once that dies off with Verizon/Sprint going pure LTE then Samsung can ship globally a single SoC that they design and make themselves ...

Another common misconception.

Qualcomm is not just about CDMA 2000. Qualcomm is involved in ALL 3G including GSM, and all LTE and 5G.

That's why it does not matter if CDMA 2000 goes away(*). Qualcomm still gets IP royalties no matter whose chip is used, for any cellular standard. All they'll lose from Apple is relatively minor income from their side chip sales.

(*) Okay, not quite true, if Qualcomm is forced to only license the tech being used.

I'm confused... Since Intel is the one that makes the supposedly infringing chipset Apple is using, shouldn't Qualcomm be suing Intel?

Nope. Intel already legally licenses whatever they need to make the chip itself.

Apple still has to license what they need to run the chip. And not just from Qualcomm, but from every standards contributor.

It's similar to as if Intel licensed and made an ARM based CPU chip. Then Apple bought it and licensed and used an OS that ARM sells. They're totally separate bits of IP from ARM.

Nice way to dodge the real question by selectively quoting from my post which literally SAID they deserved to be paid, but to be paid fair and just for their contributions just as the others you mention are. That's why they're not a part in this and Samsung is taking Apple's side.

Apple has already attempted the same kind of royalty complaints against other major ETSI contributors and failed.

Again: Samsung and other ETSI contributors are not fighting the royalty method, since they use it themselves. They're fighting other Qualcomm business requirements such as full licensing... which btw also used to be standard for ETSI licenses.

You didn't answer my question about why Qualcomm deserves to be paid a percentage of the entire device the modem is put in and not for the percentage on the modem itself? Even when using a competitors technology only using their IP.

Licensing by chip price makes no sense. Silicon keeps getting cheaper to make, but the IP retains its value. It's like claiming that Apple should only charge its users for the actual cost of the extra storage they buy in an iPhone, instead of the way they actually charge many times as much.

As for licensing by device price, who knows, maybe that will change in today's legal environment. But the point is, it'll be a change and it'll be only because Apple is trying for even more profit, not because the previous way was wrong or illegal.
 
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Let’s say Qualcomm would charge Apple less for their IP, does anyone here think Apple would pass on their savings to the consumer?

Nope. They'd save money but they would never pass that on to us. If anything it's a green light on charging us MORE. If they didn't have to pay a huge portion to Qualcomm, that will increase their profits and consumers won't get a darn thing from it...
 
its worst than that - Qualcomm charges a percentage of the total selling price of the phone regardless of whether the device uses a Qualcomm chip or NOT- great business for them obviously

https://www.bloomberg.com/news/arti...nsing-payments-to-qualcomm-as-fight-escalates

I don't understand why some still make this asinine comment about the royalty basis.

First, it's a perfectly legal and widely accepted industry practice to charge a percentage of a total selling price. Also considering that Apple demanded about $30 per device for a handful of frivolous design and utility patents from Samsung a few years back, Qualcomm's licensing offer by contrast is a bargain, IMO. There other industries, business, and standard groups with different licensing schemes: eg, MPEGLA licensing is per unit sales with a certain cap on total royalty collected; IEEE related patent licensings are now based on component pricing.

Second, Qualcomm is not shoving their chips in every consumer's throat. If you want to enjoy Apple's engineering and design marvels your iPhone offers and you have absolutely no need for Qualcomm's chips/wireless inventions, you could go out and buy a iPod Touch.
 
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That isn't the job of Apple - Intel designs, manufacturers and sells those components to Apple therefore it is on Intel's own shoulders to ensure the correct royalty are paid. Anyone wondering why Qualcomm isn't going after Intel with the same vigour as they are going after Apple? anyone feel as though this is a shake down as Qualcomm is being screwed from all directions because in the long run the only thing hold Samsung to using Qualcomm is CDMA2000 but once that dies off with Verizon/Sprint going pure LTE then Samsung can ship globally a single SoC that they design and make themselves - millions of units disappearing over night and a huge revenue stream disappears. Yes, I can see what Qualcomm is behaving like they are - they're fighting for their very survival.

Qualcomm typically doesn't go after competing baseband makers -- there is nothing new about this. The company instead collects licensing fees from handset OEMs who buy chips from their competitors for greater royalty.

Sure, Qualcomm chip making division (QTI) make greater revenue, but most, about 3/4, of their profit comes from licensing division (QTL). Qualcomm is still a significant leading contributor of almost all existing and emerging wireless standards (ie, LTE, 5G, etc). IMO, I don't think their dominance in IP in jeopardy, but the company has been fined and is still being investigated for their anti-competitive licensing practices in baseband business -- which could in turn adversely affect businesses in other areas.
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The deal wasn't that Apple buys a chip and that is it. So when you or I buy a processor, we pay our $300 - $500 for the physical processor and that is it. Qualcomm is saying that they want a percentage of the total phone sale, which is likely much more than the chip is worth, you know price gouging. Apple on AT&T and T-Mobile phones isn't even using a Qualcomm chip, they are using an Intel Chip. You don't see Qualcomm suing Intel or at least I haven't heard of that. Apple is simply taking a stand because they are big enough to do so and rumors here suggest that they are doing everything they can to get rid of Qualcomm chips in their products moving forward.

Purely going by using your flawed logic, Apple's pricing is also unfair -- or "gouging" -- since they are charging more than what it's physically "worth."

AT&T and Tmobile phones don't use Qualcomm chips, but the Intel baseband inside those won't work without Qualcomm wireless IP's. Qualcomm's licensing is not for the chip alone, but the wireless communication tech they developed.

Yeah, Qualcomm doesn't go after other patent holders -- they go after handset makers.

Now, as to why Apple is fighting Qualcomm, Apple believes that their own frivolous design and utility patents are worth $30 per devices, while everyone else's, including those of Qualcomm, are worth $0.00000x and it should be based on the smallest component that embodies patented features -- especially if they are part of wireless standards.
 
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Qualcomm develops technology and patents it.

Apple uses said technology in their phones, refuses to pay for it, violating the patent.

Qualcomm wants restitution.

How is Qualcomm the bad guy here? Am I missing something?

They pay for damn license when they buy the chip, that's it GOT THAt.
The POS at Qualcom also wants a cut from the whole damn phone Apple is making (that's just one way they're abusing the market). Think about that and then come back with your asinine "why are they the bad guy" (sic).

BTW, the only reason they're a standard is that they PROMISED NOT TO DO THAT. That's the whole point of getting those IP into standard. So, basically, get a clue.
 
That's one the dumbest thoughts ever on the macrumors forum and shows a complete lack of understanding even the most basic business concepts.

Well thank you. Like I said, glad I don't run it. I'm an engineer, I make gears turn. I can't stand the office dummies.
 
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Sleazy because it's not Apple.

How DARE someone else make money from developing the technology for the Anointed Almighty God Steve Jobs' phone!
It sleazy because Qualcomm overreached asking not only for the profit buying its chips but additional profit based on the cost of the device the chip was part of. Thus profiting off all the other technology as well that the phone included. Apple should consider in it's counter suit asking to embargo all non-Apple phones using Qualcomm chips that _may_ infringe on Apple's patents. And then ask for a part of the cost of all the devices built with infringing chips ... Fairs fair when you beat the bear.
 
Yeah! <grabs pitchfork>

Those AirPods, iPhone X, iPad Pros, MacBooks, and other class-leading products and services suck! Let’s bring back the other guy who was responsible for MobileMe!

(Obviously I’m being overly sarcastic, but cmon, TC isn’t a bad guy and you seem to forget he was hand-picked by the guy that every Apple fan adores. I mean Steve wasn’t going to just hand the company that he spent his entire life work to someone who wasn’t good enough)

You've got to be kidding.

Steve saved Apple by bringing on OSX (who remembers OS/9?). Reinvented the phone with the iPhone. Changed the way we play music with the iPod and iTunes. And of course invented the lamp shade iMac ;)

Timmy polarizes people with his politics, strings us along (just wait for the Mac Pro! and Mac mini!) and confuses us with all the SKU's in the stores now (how many generations of iPhones and iWatches and iPads to we need).

Timmy turned Apple into the GE of technology.
 
You've got to be kidding.

Steve saved Apple by bringing on OSX (who remembers OS/9?). Reinvented the phone with the iPhone. Changed the way we play music with the iPod and iTunes. And of course invented the lamp shade iMac ;)

Timmy polarizes people with his politics, strings us along (just wait for the Mac Pro! and Mac mini!) and confuses us with all the SKU's in the stores now (how many generations of iPhones and iWatches and iPads to we need).

Timmy turned Apple into the GE of technology.
If you think Steve’s politics were different than Tim’s you are very mistaken.
 
Nice way to dodge the real question by selectively quoting from my post which literally SAID they deserved to be paid, but to be paid fair and just for their contributions just as the others you mention are. That's why they're not a part in this and Samsung is taking Apple's side.

hate to nitpick, in what way is Samsung taking Apple's side? Both Samsung and Intel filed amicus in support of FTC, not Apple. Samsung's complaint against Qualcomm mostly evolves around Qualcomm's license practice with competing baseband makers (or lack thereof) and cross-licensing; Apple's is concerned with mostly with the royalty basis/rates and portfolio licensing.

You didn't answer my question about why Qualcomm deserves to be paid a percentage of the entire device the modem is put in and not for the percentage on the modem itself? Even when using a competitors technology only using their IP.

They don't deserve to profit off the money Apple is putting into iPhone developments independent of the modem. They deserve to profit from their inventions: not Samsung's or Apples. It's think it's absolutely ridiculous and can't wait for this issue to be brought up again: a lot can change in 15 years and a lot in wireless has.

I'm not kdarling, but sure, Qualcomm, or wireless patent holders, deserves to get paid on per device basis because Qualcomm's IPs add significant value and drive market demand for Apple iPhones. Without Qualcomm's wireless IPs -- or Nokia's, Ericsson's, Samsung's, for that matter -- Apple iPhone is essentially a iPod Touch which costs far less and sells a lot fewer in units sales.

They are changing royalties (by reducing rebates) for exclusivity. Just because it's "a rebate" doesn't mean it's not an attempt to control the market.

That's how Apple misrepresented the rebate agreement to regulators, but Qualcomm's response shed light on what really happened (see : QUALCOMM INCORPORATED’S REDACTED ANSWER AND DEFENSES). In short, it was Apple who first drafted the exclusivity into their agreement; now Apple accuses Qualcomm of twisting their arms into the exclusivity :

146. In its Complaint, Apple misstates the nature of the Transition Agreement and the parties’ negotiating positions. Apple claims that Qualcomm forced Apple “to deal exclusively with Qualcomm on the purchase of chipsets”. But, in fact, it was Apple’s draft of the Transition Agreement that included the term about which it now complains.

through

150. Apple also misrepresents the nature and terms of the Cooperation Agreement in its Complaint. Apple alleges that the “sole purpose” of Qualcomm's payments under the Cooperation Agreement was “to reduce Apple’s royalty burden in exchange for exclusivity”. The terms of the contract make clear, however, that Qualcomm’s payments under the Cooperation Agreement are in exchange for other valuable consideration from Apple, including, among other things, Apple’s promise not to initiate, or actively induce a third party to initiate, litigation (including regulatory investigations) against Qualcomm; and (ii) not to assert its patents against Qualcomm. Apple’s patent standstill commitment provided Qualcomm with assurance that Apple would not disrupt Qualcomm’s ability to provide its chipsets to other customers, and Apple agreed not to assert its patents against Qualcomm for certain past sales even after expiration of the CooperationAgreement. In other words, the parties negotiated for complete peace. For that, Qualcomm agreed to make large payments to Apple each quarter.


I personally think Qualcomm is attempting to prevent others from contributing towards future wireless technology in an effort to maintain its leadership. Anticompetitive.

Sure, time to put on your fanboi tin-foil hat. Now if you want to talk about something absurd and sinister in tech industry, do you remember when Apple tried to monopolize rounded-corners and rectangles?

They've already been found guilty of refusing to license their standard essential patents and forcing people to pay more for what they don't need, why is not believable they would continue such nefarious acts?

Sure, Qualcomm has been found in violation of FRAND and competition laws when they refused to license their patents to competing baseband makers. Apple on other hand accused wireless patents holders like Nokia, Ericsson, Samsung, etc, of unfair royalty basis, rates in violation of FRAND without any evidence, but lost or settled every single case. Apple brings no new evidence to change that this time.
 
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Uh - not sure how you can build a cell modem without using Qualcomm technology- for Apple to bring this in house it will take too many years and its not worth it when they can continue using Intel.
I’m pretty sure there’s another modem the phones use? Doesn’t Verizon use a snap dragon modem? Or did I read a recent article wrong...
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I’m pretty sure there’s another modem the phones use? Doesn’t Verizon use a snap dragon modem? Or did I read a recent article wrong...

Never mind, Qualcomm owns snapdragon.
 
Nope. They'd save money but they would never pass that on to us. If anything it's a green light on charging us MORE. If they didn't have to pay a huge portion to Qualcomm, that will increase their profits and consumers won't get a darn thing from it...
Exactly... that tells me Apple should charge their consumer 2K for an iPhone... and they still would get away with it. I for myself used to use/have Apple products... but since this is going on I dumped all my Apple devices and guess what life goes on.
 
None of the things you mentioned



None of the things you mentioned are covered by FRAND. Patents on technologies which become standards and this are inherently necessary to follow in order to make a product have a different set of rules which prevent them from becoming a monopoly/price gouging/unfairly charging for its IP.

You are welcome to make any software for the iPhone and release it not on Apple’s App Store, and people can use it. There is nothing about building an app for Android that requires you to pay a liscensing fee to Apple.

There is no possibility for innovation here. In order to be able to connect to the network, you must follow Qualcomm’s standard. So even if you find another way to do it, you still have to pay Qualcomm. This is very different from how the majority of parents work. Thus, this is a very special situation.

Also, you make repeated claims only Apple is complaining. Meanwhile, the FTC filed s complaint in January, and they’ve been under investigation for royalty abuse in Japan, Europe and Taiwan. Now Samsung and Intel are also coming to join the suit.

So basically, a huge portion of anyone who interacts with Qualcomm is suing them. Keep up the blinding hatred, its getting you places.
Oh the irony of hatred.
 
Qualcomm is doing its best to make even more enemies…. now including Intel, AT&T and the stupendously loudmouthed John Legere T-Mobile.

Or Apple could start doing the right thing, and selling the far superior Qualcomm iPhone on all four carriers. It sucks that Apple has shipped inferior phones with Intel chips because of their stupid little spat with Qualcomm. Everyone else gets along just fine with Qualcomm, and as a result, Android phones are now at least a year ahead of the iPhone on wireless technology, using Qualcomm's gigabit LTE. Meanwhile, Apple is 2 years ahead on CPUs, so you can't have it all. If Apple would just stop having a hissy fit with licensing Qualcomm technology, we could have it all.
 
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