Apple executive pressured Samsung to turn up the legal heat against Qualcomm in South Korea?

Apple executive pressured Samsung to turn up the legal heat against Qualcomm in South Korea?
According to a report published today by Bloomberg, two-years ago an unnamed Apple executive spoke with his counterpart at Samsung in an attempt to get anti-trust regulators in South Korea to put more pressure on Qualcomm. Apple is seeking to lower the royalty payments it makes for the use of certain Qualcomm patents. The chipmaker also has failed to pay Apple nearly $1 billion in royalty rebates that it reportedly owes the company. Apple claims that this was done in retaliation for its involvement in Qualcomm's Korean anti-trust issues, and filed a lawsuit against the San Diego based firm.

That kicked off a series of suits filed globally between Apple and Qualcomm. Also, contract manufacturers that assemble the iPhone and iPad like Compal Electronics Inc., Foxconn Technology Group, Pegatron Corp. and Wistron Corp. stopped making royalty payments to Qualcomm at Apple's request. That resulted in a lawsuit filed by Qualcomm against those companies.

Qualcomm has been accused of not following protocol by seeking royalties on standard essential patents that are too high. These patents, necessary for smartphone manufacturers to license, are supposed to be offered under fair, reasonable and non-discriminatory terms. Instead, other tech firms say that Qualcomm is using its dominating market position to demand high royalty payments from manufacturers that license its technology.

Bloomberg's report today includes comments made by Qualcomm about an Apple executive who met a peer employed by Samsung, at a conference in Idaho. The Apple executive allegedly told his Samsung counterpart to "Get aggressive," apparently referring to the Korea Fair Trade Commission. The regulatory agency subsequently fined Qualcomm a large sum of money for its patent licensing practices among other things.


Apple complains that Qualcomm is setting royalty prices based on a percentage of the total price of an iPhone even though the patent license covers just one specific part. Under Qualcomm's method, Apple pays Qualcomm more for handsets with higher storage capacity even though the modem covered by the license remains the same, regardless of storage capacity. Apple general counsel Bruce Sewell says that the royalty due on each iPhone unit should not exceed $4.

According to Bloomberg, the unnamed Apple executive might have been CEO Tim Cook, who could have been speaking with Samsung's then Vice Chairman, Jay Y. Lee. The latter was eventually convicted of bribing South Korea's former president. The scandal also took down the vice chairman of the Korea Fair Trade Commission, who was forced to resign. 

source: Bloomberg

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18 Comments

1. PhoneCritic

Posts: 1354; Member since: Oct 05, 2011

Well we wont know for sure until all the facts come out. But one thing is for certain if contracts were signed and agreements made it really should not be all that difficult for a judge to decide that one company cannot order other companies from honoring their own individual contracts made with another company. That just logically makes all contracts every where and in every case invalid ( mortgages , rent, health care, etc... )

2. toukale

Posts: 633; Member since: Jun 10, 2015

Really, no contract is full proof. Every contracts have clauses in them and this contract has more to do with Frand licensing patents than anything. I expect Qualcomm to lose this case, it's the reason they are making so much noise. This case is all about how they are abusing their Frand patents. Frand patents comes with strings attach, the industry will adapt your contribution into the pool and you collect money from everyone. Or they reject your contribution and adapt something else and you get nothing.

5. uncle_gadget

Posts: 1050; Member since: Sep 20, 2017

But if a company agrees to a deal then its a contarct. You just don't get it do you. If Apple or any OEM thought the deal was bad, then why do you sign? I have a question? Are you old enough to buy a car? If so then answer this. I go to a dealer to price a car, I go to another dealer and price the same car. Now dealer one offers me a deal, and I accept his offer and deal. The dealer gives me the car and any extra I paid for with it. Now its time to make payments on the car which I am already told how much this will be. Try not paying your car payment or rent/mortgage payment before a court says you don't have too and see what happens to you. This is what wrong with you and fans like you. You're to busy looking at the facts from a fan standpoint. Apple says Qualcomm is cheating and you simply take their word as a fan. You aren't looking at the facts.

9. kiko007

Posts: 7493; Member since: Feb 17, 2016

You have confirmed my suspicion that you are, in fact, TechieXP. Everything from the way you write stanzas to your strawman arguments are all trademarks of the way he posts. The only thing throwing me off is the lack of typos.

13. Subie

Posts: 2370; Member since: Aug 01, 2015

Typo found = last word in his first sentence.

14. kiko007

Posts: 7493; Member since: Feb 17, 2016

Oh I noticed that afterwards. Didn't feel the need to correct it as it wasn't as erroneous as his usual diatribe essay mishaps.

3. uncle_gadget

Posts: 1050; Member since: Sep 20, 2017

Apple is gonna try to ask a company they themselves sued over BS, to side with them against Qualcomm? I hope that Samsung Exec didn't go for it. If it has been me that Apple Exec would have had a lawsuit against him and Apple and I would have ratted them out to Qualcomm too. Apple yet again trying to get a upper hand when they know they are wrong!

4. tedkord

Posts: 17365; Member since: Jun 17, 2009

Hey, Sammy. Remember the hell I put you through over ridiculous BS? Wanna help me screw someone else?

7. uncle_gadget

Posts: 1050; Member since: Sep 20, 2017

Exactly. Apple has some nerve. Samsung shoudl have went to the court and told the judge and Qualcomm that Apple came to them asking for help against Qualcomm. Apple has nerves. After Suing Samsung for no reason and winning then losing, now they wanna ask them for help? And sure Jay was like, whatever fight your own battle dips**t.

6. fyah_king unregistered

I hope Samsung tells them to gtfo!!!

8. uncle_gadget

Posts: 1050; Member since: Sep 20, 2017

Apple you aren't the only greedy company in the world. OEM's using market position to screw each other. This isn't new. They've all done it and are doing it. Yet Apple is the only one complaining? All these OEM's have the ability to kill Apple. I don't care how much Apple offers to buy parts. You don't have to sell them anything. Tell them to make their own. That way Apple woudl be forced off the market and Android the clear winner could take over and we can be happy with real innovation and fair competition.

10. xfire99

Posts: 1205; Member since: Mar 14, 2012

Do som research. If Samsung could deny to sell components to Apple, they would done it long time ago and Apple with alot others companies would be out of the game already. There are anti-competitive laws which a company can't refuse to sale without reason. If they could refuse and all these big companies will dominate the World Market and have monopoly over everything. Google and read.

11. kiko007

Posts: 7493; Member since: Feb 17, 2016

"All these OEM's have the ability to kill Apple." Nonsense. Apple holds EVERY SINGLE OUNCE of mindshare in the industry as it currently stands. Take them out of the equation and the entire market collapses. Don't be stupid. "I don't care how much Apple offers to buy parts. You don't have to sell them anything." Yeah sure, don't sell parts to Apple, watch what happens as they find another vendor to do it and you bottom out. Smart business move right there./s "Tell them to make their own." Apple would likely buy Foxconn outright, pigeon holing every other OEM not named Samsung by doing so. I'm pretty sure that's the exact opposite of the outcome any rational person would want. "That way Apple woudl be forced off the market and Android the clear winner could take over and we can be happy with real innovation and fair competition." f**king delusional. Do you HONESTLY think it's that simple to get rid of the most affluent company on Earth? Are you in grade school? Android doesn't sell anywhere near enough premium phones to make up for sinkhole at the top of the market should Apple leave it. Not to mention the numerous monopolistic lawsuits coming Google's way should it come to pass. For real, why are Android users so f**king out of touch with reality? Why would YOU as a consumer want one and only one option as to an OS? It's insanely stupid.

12. DRS1977

Posts: 679; Member since: May 27, 2015

You have to be the most delusional iFruit fanboy on the face of the planet. You wrote a bunch of drivel that is all baseless lies. Not only are you a gigantic troll on on PA, you also troll The Verge regularly.

16. Supah

Posts: 692; Member since: Mar 08, 2017

kiko da kellyanne conway of PA.....nuff said

15. tedkord

Posts: 17365; Member since: Jun 17, 2009

The fact that the iPhone X borrows so much from Samsung phones clearly shows Apple doesn't own 100% mindshare.

17. kiko007

Posts: 7493; Member since: Feb 17, 2016

I'm not sure your definition of mindshare matches mine. Don't get me wrong, I get what you're trying to say, I think, it just isn't registering to me at the moment.

18. AxelFoley unregistered

Of note, Tim Cook called the Vice Chairman of Samsung Group (not electronics), for all those who love separating the two

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