Apple

Apple takes Qualcomm to court over unpaid royalties

by Alan Friedman / Jan 20, 2017, 9:02 PM

Apple takes Qualcomm to court over unpaid royalties

Just a few days ago, we told you that the FTC has sued Qualcomm for an anti-competitive deal that supposedly was made with Apple. The contract reportedly covered iPhone production from 2011 to last year. According to the suit, Qualcomm agreed to be the exclusive baseband chip provider for the Apple iPhone during that time period. In exchange, the chip maker charged Apple a lower royalty fee. This year, Apple is using baseband chips from both Qualcomm and Intel.

Today, we have some more news involving Qualcomm, Apple, and a lawsuit. Apple has filed a suit against Qualcomm accusing the latter of withholding $1 billion that Apple says that it is owed by the chip maker. Apple claims that it is being stiffed because it has spoken truthfully to law enforcement agencies who are investigating Qualcomm.

In a statement, Apple claims that Qualcomm has built its business on "exclusionary tactics and excessive royalties." As proof, Apple notes that it pays Qualcomm five times more in royalties than all other firms it has cellular patent license agreements with, combined.

"For many years Qualcomm has unfairly insisted on charging royalties for technologies they have nothing to do with. The more Apple innovates with unique features such as TouchID, advanced displays, and cameras, to name just a few, the more money Qualcomm collects for no reason and the more expensive it becomes for Apple to fund these innovations. Qualcomm built its business on older, legacy, standards but reinforces its dominance through exclusionary tactics and excessive royalties. Despite being just one of over a dozen companies who contributed to basic cellular standards, Qualcomm insists on charging Apple at least five times more in payments than all the other cellular patent licensors we have agreements with combined."-Apple

source: SeekingAlpha

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56 Comments

1. ctdog4748

Posts: 797; Member since: Mar 05, 2016

I love Apple but holy sh!t are they reaching with this ridiculous lawsuit. Please Apple stop it.

posted on Jan 20, 2017, 9:13 PM 11

2. willard12 unregistered

They are reaching by claiming they are innovating with unique features like TouchID (Authentec), advanced displays, and cameras.

posted on Jan 20, 2017, 9:20 PM 19

15. techperson211

Posts: 1280; Member since: Feb 27, 2014

Apple being apple. The use if innovation is always on their statement. I wonder if they'll refund the said overcharging of qc to their cuatomer?

posted on Jan 20, 2017, 11:44 PM 10

54. sgodsell

Posts: 7433; Member since: Mar 16, 2013

The only innovative thing Apple has these days is their innovative lawyers.

posted on Jan 21, 2017, 3:00 PM 3

42. phonearenarocks

Posts: 606; Member since: Mar 26, 2015

Apples innovation is not just what they have told above but they have innovated in things like Double tap to zoom, phone with rounded corners, unified design with rounded icons. Truly, these are earth shattering.

posted on Jan 21, 2017, 4:30 AM 2

46. Finalflash

Posts: 4063; Member since: Jul 23, 2013

I think this is one of those lawsuits meant to diffuse the original lawsuit through frivolous BS. Apple and QC are being investigated for anti-competitive BS. Apple is now suing QC for charging TOO MUCH in royalties while the original investigation is for Apple getting lower rates for SPECIAL treatment towards QC. So this is just a horse and pony show to state "hey, they're ACTUALLY screwing us over and therefore, that other investigation is BS". If this diffuses the other investigation, then they'll "settle" out of court for an undisclosed sum and everyone will have learned a lesson to NOT get caught next time.

posted on Jan 21, 2017, 8:41 AM 0

48. willard12 unregistered

Apple isn't being investigated for anti-competitive behavior, only Qualcomm. As this article points out, Apple snitched on Qualcomm to help get them investigated.

posted on Jan 21, 2017, 10:10 AM 0

62. shm224

Posts: 295; Member since: Mar 19, 2015

You don't seem to understand the context of these lawsuits. These lawsuits are part of Apple's decade long effort to squeeze suppliers -- Apple had been complaining about the royalty rates and basis for almost since they started making mobile devices without much success -- losing all lawsuits or settling in wireless SEP's favor.

posted on Apr 14, 2019, 9:48 AM 0

47. steodoreben

Posts: 379; Member since: Sep 26, 2013

Why should Qualcomm pay Apple for royalties? It should be the other way around since Apple is using Qualcomm's technology.

posted on Jan 21, 2017, 9:38 AM 0

63. shm224

Posts: 295; Member since: Mar 19, 2015

No royalties; we are talking "rebates." Apple pays $7.50 for Qualcomm's patents and additional $20-$30 per modem -- the "rebates" is for modems.

posted on Apr 14, 2019, 9:52 AM 0

21. mahima

Posts: 739; Member since: Nov 20, 2014

Yes apple are ridiculous At least, First give nokia what truly is theirs you say nokia asked too much All along you are the one asking too much apple have beautiful product but they are rotten inside

posted on Jan 21, 2017, 12:25 AM 0

37. tedkord

Posts: 17410; Member since: Jun 17, 2009

Apple has never had any trouble talking from both sides of its mouth. Like arguing that Samsung should be liable for the entire profit of a device with an infringing part in one case, but that Apple should only be liable for the value of the individual part when they're found guilty.

posted on Jan 21, 2017, 3:24 AM 7

25. DoggyDangerous

Posts: 1028; Member since: Aug 28, 2015

Their statement sound like talking about apple, not qcomm. This case should be brought against apple. They are the one with the most hated practices.

posted on Jan 21, 2017, 12:55 AM 0

61. shm224

Posts: 295; Member since: Mar 19, 2015

Tim Cook loves lawsuits.

posted on Apr 14, 2019, 9:45 AM 0

3. KingSam

Posts: 1466; Member since: Mar 13, 2016

The more Apple innovates with unique features such as TouchID, advanced displays, and cameras, to name just a few, the more money Qualcomm collects for no reason and the more expensive it becomes for Apple to fund these innovations........ The word Innovate must be nice.

posted on Jan 20, 2017, 9:28 PM 0

4. hemedans

Posts: 757; Member since: Jun 01, 2013

imagine Qualcomm and Nokia become brothers in court and sue Apple. cant wait for that

posted on Jan 20, 2017, 9:38 PM 11

5. Derekjeter

Posts: 1515; Member since: Oct 27, 2011

Does this mean I can sue Apple, for many years of unfair prices on the iPhone? They charge 3 times more than other companies for the same tech. Seriously, is there a lawyer that will take my case?

posted on Jan 20, 2017, 9:38 PM 23

12. Zylam

Posts: 1817; Member since: Oct 20, 2010

All highend phones from the Oems cost as much as the iPhones. So the Note 7 launched at 350 dollars brand new eh? You comment is meaningless.

posted on Jan 20, 2017, 11:08 PM 0

17. MrElectrifyer

Posts: 3960; Member since: Oct 21, 2014

"All highend phones from the Oems cost as much as the iPhones." And many of them (not all) offer much more uses than the iphone to make up for that. Even a dumb phone can do stuff an iphone can't. Comparing tools based merely on price and ignoring their uses is just retarded...

posted on Jan 20, 2017, 11:51 PM 15

29. kiko007

Posts: 7500; Member since: Feb 17, 2016

Seriously kid......what the hell did the iPhone do to you as a child that you're so angsty? Jesus Christ..... let people decide what is are isn't worth something to them.

posted on Jan 21, 2017, 1:16 AM 2

45. sissy246

Posts: 7124; Member since: Mar 04, 2015

And what did Samsung do to you or any other android phone for that matter. You talk bad about Samsung/android, so what's the difference.

posted on Jan 21, 2017, 7:21 AM 10

51. MrElectrifyer

Posts: 3960; Member since: Oct 21, 2014

You're wasting your time trying to talk logic with that hypocrite, his arrogance and double-standards are just limitless...

posted on Jan 21, 2017, 11:13 AM 1

53. kiko007

Posts: 7500; Member since: Feb 17, 2016

Says the neckbeard. Funny you throw the word arrogant around while acting like a spoiled valley girl cuz the world doesn't work the way you want it to. Then again, social etiquette has never been a strong suit of yours, has it?

posted on Jan 21, 2017, 12:55 PM 1

55. MrElectrifyer

Posts: 3960; Member since: Oct 21, 2014

How pointing out facts equates to "acting like a spoiled valley girl", only an arrogant twit like you knows...

posted on Jan 21, 2017, 3:19 PM 1

56. kiko007

Posts: 7500; Member since: Feb 17, 2016

I'd suggest you look up what a fact is.....but what the hell. Its not like you're the first troglodyte on the internet to pass off opinion as fact. BTW....with insult game is rather outdated. Work on that as well as that seething bumburn you've had since junior high. Being emotional about what you love is certainly fine, until you start acting as though I should give a s**t about your preferences.

posted on Jan 21, 2017, 4:04 PM 0

57. MrElectrifyer

Posts: 3960; Member since: Oct 21, 2014

Consider taking your own advice and doing some further research since you're clearly in denial...but alas, you're not the first iDiot on the internet to deny the fact that a dumb phone can do stuff that an official iPhone still can't (eg. easily receiving multiple contacts from a BB10 device via Bluetooth), or the fact Android devices offer a lot more uses than official iPhones (eg. where's the full equivalent of Tasker, Cerberus, Easy Copy, Universal Copy, Titanium Backup, etc. for iOS). Remain in denial all you want, after all, it's no surprise that iGnorance is your strongest suit, twit...

posted on Jan 21, 2017, 4:46 PM 1

58. kiko007

Posts: 7500; Member since: Feb 17, 2016

Calm you tits Josephine......no one uses any of that crap. I own several Android phones, never once had any other user asked about the items you've listed. Not once. Face it champ, you're just another angry tryhard who'd rather piss on other people's parade because you're miserable. I mean those i-insults are so awful it just makes you look retarded more than me . Kinda reminds me of those "PC master race" fags who treat people who buy consoles like they funded the Holocaust or something....it's so pathetic. Why the hell should I build something to game on? It's to play f**king video games...... I'm not advising the Pentagon! In all seriousness, if you'd stop bringing such vitriolic remarks towards people for thinking differently than you, conversations regarding tech would be a lot more pleasant to have with you involved. You think I don't know iPhones lack flair? I've used an Android phone beside my iPhone for years now. You think I don't get that extra s**t is important to tech fans? Of course I do, I am one. Having said that.....you can't talk to people the way you go about it and be a happy individual communicating what you want to others. If your mother said she preferred iOS would you respond the same way to her?

posted on Jan 21, 2017, 5:15 PM 0

22. VZWuser76

Posts: 4974; Member since: Mar 04, 2010

I think you mean some high-end phones cost as much as the iPhone, but not all of them. Last year's Nexus devices for example were quite a bit less than the comparable iPhone.

posted on Jan 21, 2017, 12:34 AM 3

41. mrochester

Posts: 1020; Member since: Aug 17, 2014

You can't regulate the free market like that. iPhones cost as much as they do because people see the value in them at that price. The reason phones from other manufacturers come out at lower prices is because their value isn't as high so they can't demand as high a price for them the way Apple can.