Today, MacRumor passes along an analyst's estimate (i.e., rumor) Apple Paid an Estimated $5-$6 Billion to Settle Qualcomm Dispute, Plus $8-$9 Per iPhone in Royalty Fees.
Copyright © 2019 Robert Moll. All rights reserved.
Showing posts with label Qualcomm. Show all posts
Showing posts with label Qualcomm. Show all posts
Thursday, April 18, 2019
Monday, March 18, 2019
Law360 - Qualcomm Wins $31M From Apple In Smartphone Patent Trial
Law360 reports Qualcomm Wins $31M From Apple In Smartphone Patent Trial.
Copyright © 2019 Robert Moll. All rights reserved.
Copyright © 2019 Robert Moll. All rights reserved.
Friday, March 15, 2019
Reuters - U.S. judge rules Qualcomm owes Apple nearly $1 billion rebate payment
The mobile computing patent war never stops (too much money at stake).
This week Reuters reports: "A U.S. federal judge has issued a preliminary ruling that Qualcomm Inc. owes Apple Inc. nearly $1 billion in patent royalty rebate payments, though the decision is unlikely to result in Qualcomm writing a check to Apple because of other developments in the dispute."
As background, Qualcomm threatened to withhold mobile chips if Apple refused to pay a significant increase in the patent royalty rate. I don't think it is the smartest move to attempt to strong arm Apple with patents, but then life is about learning.
As stated in Reuters: "contract factories that built Apple’s iPhones would pay Qualcomm billions of dollars per year for the use of Qualcomm’s patented technology in iPhones, a cost that Apple would reimburse the contract factories for. Separately, Qualcomm and Apple had a cooperation agreement under which Qualcomm would pay Apple a rebate on the iPhone patent payments if Apple agreed not to attack in court or with regulators. In a lawsuit filed two years ago, Apple sued Qualcomm, alleging that the chip supplier had broken the cooperation agreement by not paying nearly $1 billion in patent royalty rebates."
Apple instructed the contract factories to quit paying the royalties to Qualcomm offset the missing rebates.
"Qualcomm in turn alleged that it stopped paying the rebate payments because Apple had broken the agreement by urging other smartphone makers to complain to regulators and making “false and misleading” statements to the Korean Fair Trade Commission, which was investigating Qualcomm over antitrust allegations. Apple responded that it was making lawful responses to regulators in an ongoing investigation."
So mobile computing patent war continues global, and expensive. For now the court has sided with Apple so maybe settlement would be smart especially as Intel moves into position with another source of mobile chips.
For details see U.S. judge rules Qualcomm owes Apple nearly $1 billion rebate payment
Copyright © 2019 Robert Moll. All rights reserved.
This week Reuters reports: "A U.S. federal judge has issued a preliminary ruling that Qualcomm Inc. owes Apple Inc. nearly $1 billion in patent royalty rebate payments, though the decision is unlikely to result in Qualcomm writing a check to Apple because of other developments in the dispute."
As background, Qualcomm threatened to withhold mobile chips if Apple refused to pay a significant increase in the patent royalty rate. I don't think it is the smartest move to attempt to strong arm Apple with patents, but then life is about learning.
As stated in Reuters: "contract factories that built Apple’s iPhones would pay Qualcomm billions of dollars per year for the use of Qualcomm’s patented technology in iPhones, a cost that Apple would reimburse the contract factories for. Separately, Qualcomm and Apple had a cooperation agreement under which Qualcomm would pay Apple a rebate on the iPhone patent payments if Apple agreed not to attack in court or with regulators. In a lawsuit filed two years ago, Apple sued Qualcomm, alleging that the chip supplier had broken the cooperation agreement by not paying nearly $1 billion in patent royalty rebates."
Apple instructed the contract factories to quit paying the royalties to Qualcomm offset the missing rebates.
"Qualcomm in turn alleged that it stopped paying the rebate payments because Apple had broken the agreement by urging other smartphone makers to complain to regulators and making “false and misleading” statements to the Korean Fair Trade Commission, which was investigating Qualcomm over antitrust allegations. Apple responded that it was making lawful responses to regulators in an ongoing investigation."
So mobile computing patent war continues global, and expensive. For now the court has sided with Apple so maybe settlement would be smart especially as Intel moves into position with another source of mobile chips.
For details see U.S. judge rules Qualcomm owes Apple nearly $1 billion rebate payment
Copyright © 2019 Robert Moll. All rights reserved.
Tuesday, January 15, 2019
Venture Beat - Apple and Qualcomm offer billion-dollar sob stories at FTC antitrust trial
In Venture Beat, Jeremy Horwitz reports Apple and Qualcomm offer billion-dollar sob stories at FTC antitrust trial.
The article gives more details on the negotiations leading to the FTC trial than what is described in Wired - The FTC Thinks You Pay Too Much For Smartphones. Here’s Why. For example, the article mentions initially Apple was willing to pay $7.50/phone in 2011 and meet other conditions including advocate against a budding wireless standard WiMax. Then Qualcomm decided to leverage the need for the CDMA chips used by Verizon on the sale of other chips and increase the patent license from $7.50/phone to $8-10/phone plus retain exclusivity. It looks like the "straw that broke the camel's back" as Apple had further developed Intel as a second source for the chips.
Copyright © 2019 Robert Moll. All rights reserved.
The article gives more details on the negotiations leading to the FTC trial than what is described in Wired - The FTC Thinks You Pay Too Much For Smartphones. Here’s Why. For example, the article mentions initially Apple was willing to pay $7.50/phone in 2011 and meet other conditions including advocate against a budding wireless standard WiMax. Then Qualcomm decided to leverage the need for the CDMA chips used by Verizon on the sale of other chips and increase the patent license from $7.50/phone to $8-10/phone plus retain exclusivity. It looks like the "straw that broke the camel's back" as Apple had further developed Intel as a second source for the chips.
Copyright © 2019 Robert Moll. All rights reserved.
Monday, January 14, 2019
Wired - The FTC Thinks You Pay Too Much For Smartphones. Here’s Why
In Wired, The FTC Thinks You Pay Too Much For Smartphones. Here’s Why, FTC is investigating if Qualcomm has committed an antitrust violation (a "tax" on cell phones that drives up prices and hurts competition) in demanding 5% of the value of a cell phone up to $20 max for licensing its patented wireless technology to Apple and Huawei.
From the article:
"Qualcomm charges companies like Apple a set percentage of the total price of a phone in exchange for the right to use its technology, according to the antitrust suit filed by the FTC. The percentages vary, but Qualcomm generally charges 5 percent of the value of a device, up to a maximum of about $20 per device, according to a legal brief filed by Qualcomm. Phone makers like Apple and Huawei argue that Qualcomm demands a larger cut of each phone sale than is fair, but that they pay because Qualcomm essentially threatens to cut off their supply of important wireless chips if they don’t. The FTC describes this as a "tax" on cellular phones that drives up prices and hurts competition.
In court Friday, Apple executive Tony Blevins accused the chipmaker of strong-arm tactics. Blevins said that during negotiations in 2013, Qualcomm president Cristiano Amon told him, "I'm your only choice, and I know Apple can afford to pay it,” CNET reports."
It appears Apple was able to buy its replacement chips from its second source Intel but incurred some delays as it scrambled to integrate the Intel chips to cover for Qualcomm's refusal to reduce its price. It sounds like the mobile computing patent wars have resumed.
Copyright © 2019 Robert Moll. All rights reserved.
From the article:
"Qualcomm charges companies like Apple a set percentage of the total price of a phone in exchange for the right to use its technology, according to the antitrust suit filed by the FTC. The percentages vary, but Qualcomm generally charges 5 percent of the value of a device, up to a maximum of about $20 per device, according to a legal brief filed by Qualcomm. Phone makers like Apple and Huawei argue that Qualcomm demands a larger cut of each phone sale than is fair, but that they pay because Qualcomm essentially threatens to cut off their supply of important wireless chips if they don’t. The FTC describes this as a "tax" on cellular phones that drives up prices and hurts competition.
In court Friday, Apple executive Tony Blevins accused the chipmaker of strong-arm tactics. Blevins said that during negotiations in 2013, Qualcomm president Cristiano Amon told him, "I'm your only choice, and I know Apple can afford to pay it,” CNET reports."
It appears Apple was able to buy its replacement chips from its second source Intel but incurred some delays as it scrambled to integrate the Intel chips to cover for Qualcomm's refusal to reduce its price. It sounds like the mobile computing patent wars have resumed.
Copyright © 2019 Robert Moll. All rights reserved.
Monday, December 10, 2018
CNBC - Apple recovers losses after Chinese court bans sale of most iPhones
The CNBC article Apple recovers losses after Chinese court bans sale of most iPhones tells us Qualcomm was able to get an injunction that bans sale of iPhones in China. A few infringed Qualcomm patents can apparently shut down significant iPhone sales in China. Even if the injunctive relief is overturned this sounds disruptive.
Copyright © 2018 Robert Moll. All rights reserved.
Copyright © 2018 Robert Moll. All rights reserved.
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