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Apple Sues Qualcomm For Roughly $1 Billion Over Royalties (cnbc.com)

An anonymous reader quotes a report from CNBC: Apple is suing Qualcomm for roughly $1 billion, saying Qualcomm has been "charging royalties for technologies they have nothing to do with." The suit follows the U.S. Federal Trade Commission's lawsuit against Qualcomm earlier this week over unfair patent licensing practices. Apple says that Qualcomm has taken "radical steps," including "withholding nearly $1 billion in payments from Apple as retaliation for responding truthfully to law enforcement agencies investigating them." Apple added, "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 also alleges that once it began cooperating with Korean authorities' antitrust investigation of Qualcomm, the company withheld $1 billion in retaliation. Korean regulators fined Qualcomm $854 million for unfair trade practices in December.

54 comments

  1. No honor among thieves by JoeyRox · · Score: 4, Informative

    "The FTC claims that to prevent Apple from launching a WiMax iPhone after Sprint deployed its first WiMax network in 2008, Qualcomm 'agreed to rebate to Apple royalties' received from the iPhone maker's contract manufacturers 'in excess of a specified per-handset cap.' In other words, Qualcomm allegedly let Apple pay lower royalties to secure a long-term spot in the iPhone, lock rivals out of the baseband market, and deal a fatal blow to the WiMax standard."

    http://www.fool.com/investing/...

    1. Re:No honor among thieves by Anonymous Coward · · Score: 0

      QCOM down $1.50 after hours.

  2. It's Apple. Pay more. by Fly+Swatter · · Score: 1

    Doesn't this go both ways ?

    1. Re:It's Apple. Pay more. by Aighearach · · Score: 1

      That's the thing about FRAND patents and standards; it is only supposed to go one way, for everybody.

      Otherwise, something else would be the standard.

    2. Re:It's Apple. Pay more. by Anonymous Coward · · Score: 0

      Apple pay more? Don't be daft, How do you think they've aggregated that massive war chest they've got? Minimize expenses and maximize income, that's the game.

    3. Re:It's Apple. Pay more. by Anonymous Coward · · Score: 0

      Apple pay more, but it doesn't have to be cash money. If you have useful standard patents then you can pay with those as part of the cash deal,the more such patents, the less cash you have to pay.

      Ever get a "Buy one, get one free" offer? They aren't getting you to pay less, you pay just the same amount, maybe even more, but they give you another one in the purchase. Yet you don't whine about those offers not being special because you have had to pay the same amount.

      Yet here you are, whining that Apple is having to pay a higher cash price than other tech companies because rounded corners isn't an important standard patent for wireless communications. Then Apple needs to pay those other tech companies for their loss by giving up sole ownership of their patents that Apple didn't have to pay.

  3. Make slashdot frosty again by Hognoxious · · Score: 1

    That's a huuuuuge lawsuit.

    --
    Confucius say, "Find worm in apple - bad. Find half a worm - worse."
    1. Re:Make slashdot frosty again by Aighearach · · Score: 1

      I predict a Beowulf Cluster of lawsuits will quickly scale things up until hot grits pour out all over the skyrocketing popcorn stocks.

  4. Nope by PortHaven · · Score: 4, Funny

    Apple's highly innovative inventions, namely flat rectangle with a screen on it, and an arrangement of icons in a grid clearly constitute innovations of incalculable value. Where as Qualcomm's patents simply involve leading edge telecommunication developments that far surpass most of their rivals in performance. Obviously, nothing special. Surely not noteworthy enough for their extensive paten portfolio, one of the largest in the wireless world, to justify 5x the royalty rates.

    1. Re:Nope by TechyImmigrant · · Score: 2, Interesting

      Apple's highly innovative inventions, namely flat rectangle with a screen on it, and an arrangement of icons in a grid clearly constitute innovations of incalculable value. Where as Qualcomm's patents simply involve leading edge telecommunication developments that far surpass most of their rivals in performance. Obviously, nothing special. Surely not noteworthy enough for their extensive paten portfolio, one of the largest in the wireless world, to justify 5x the royalty rates.

      And yet WiMax far outperformed anything the Q was doing at the time and is still competitive with LTE today. This is because lots of other companies can do telecommunication tech too and in particular, the computer companies liked 802 data networks,which make much more sense than the ITU protocols if you're sending more IP traffic than voice traffic and so 802.16 came into being. It was great while it lasted. I still have my WiMax dongle and it was fast at a time that 3G phones were a joke in terms of fast data communications.

      --
      I should use this sig to advertise my book ISBN-13 : 978-1501515132.
    2. Re:Nope by Anonymous Coward · · Score: 0

      As soon as I got to Rectangle...blah blah blah.....that same tired worn out load of bollocks, I figured you have nothing of value to say because you have no interest in facts/truth.

    3. Re:Nope by Anonymous Coward · · Score: 0

      Apple's highly innovative inventions, namely flat rectangle with a screen on it, and an arrangement of icons in a grid clearly constitute innovations of incalculable value.

      You forgot the rounded corners, Apple will sue you for the rounded corners.

    4. Re:Nope by TheFakeTimCook · · Score: 1

      Apple's highly innovative inventions, namely flat rectangle with a screen on it, and an arrangement of icons in a grid clearly constitute innovations of incalculable value. Where as Qualcomm's patents simply involve leading edge telecommunication developments that far surpass most of their rivals in performance. Obviously, nothing special. Surely not noteworthy enough for their extensive paten portfolio, one of the largest in the wireless world, to justify 5x the royalty rates.

      Qualcomm's highly innovative inventions, namely minor improvements to original work by Tesla, Marconi, et al, ...

    5. Re:Nope by saloomy · · Score: 1

      Apple's highly innovative inventions, namely flat rectangle with a screen on it, and an arrangement of icons in a grid clearly constitute innovations of incalculable value. Where as Qualcomm's patents simply involve leading edge telecommunication developments that far surpass most of their rivals in performance. Obviously, nothing special. Surely not noteworthy enough for their extensive paten portfolio, one of the largest in the wireless world, to justify 5x the royalty rates.

      Qualcomm's highly innovative inventions, namely minor improvements to original work by Tesla, Marconi, et al, ...

      Tesla and Marconi's highly original work? Surely you mean those simple expansions of work originally done by Thales of Miletus, Ben Franklyn, and Faraday.

      Give me a break. Next think you know, they will be claiming Alexander Graham Bell did something innovative by connecting wires and coils with magnets in them. Losers

    6. Re:Nope by Anonymous Coward · · Score: 0

      It's called sarcasm. You're an idiot. Look who doesn't want to hear truth.. you.

    7. Re:Nope by Anonymous Coward · · Score: 0

      You forgot Hedy Lammar

    8. Re: Nope by Anonymous Coward · · Score: 0

      CDMA and the Viterbi algorithm vs rectangle with a "beautiful new design".

    9. Re:Nope by TheFakeTimCook · · Score: 1

      Apple's highly innovative inventions, namely flat rectangle with a screen on it, and an arrangement of icons in a grid clearly constitute innovations of incalculable value. Where as Qualcomm's patents simply involve leading edge telecommunication developments that far surpass most of their rivals in performance. Obviously, nothing special. Surely not noteworthy enough for their extensive paten portfolio, one of the largest in the wireless world, to justify 5x the royalty rates.

      Qualcomm's highly innovative inventions, namely minor improvements to original work by Tesla, Marconi, et al, ...

      Tesla and Marconi's highly original work? Surely you mean those simple expansions of work originally done by Thales of Miletus, Ben Franklyn, and Faraday. Give me a break. Next think you know, they will be claiming Alexander Graham Bell did something innovative by connecting wires and coils with magnets in them. Losers

      Touché, mine Hair!

    10. Re:Nope by Anonymous Coward · · Score: 0

      according to some RANDOM dude who had nothing to do with WIMax standards ;)

    11. Re:Nope by TechyImmigrant · · Score: 2

      according to some RANDOM dude who had nothing to do with WIMax standards ;)

      Actually I was the primary author of the WiMAX/802.16 PKMv2 security protocol.
      Also I'm the primary designer of current Intel RNGs.

      --
      I should use this sig to advertise my book ISBN-13 : 978-1501515132.
    12. Re:Nope by Anonymous Coward · · Score: 0

      yes... did you notice the smiley face was winking ? :)

    13. Re:Nope by Anonymous Coward · · Score: 0

      Good job not getting it apple retard.

      The problem with inventions is that being in the real world and having to work with things as they actually are, rather than as they ideally are modelled as, means that you have to invent methods to get the damn thing to work like it SHOULD not like it DOES. E.g. gearing. Gears in real life have stiction and metal shear rates and torque and torsion and propagation delay (roughly at the speed of sound in that medium, but still a velocity of propagation). So ACTUAL gears have to be arranged so that you can get the result out you want with clever gear ratios and changing the original performance so as to make the gearing work. You can't just slap a 10,000 teeth gear with a 1000:1 ratio and hope to get away with it with anything weaker than adamantium. Which doesn't exist.

      So IRL inventions have to work around the things we can't or don't include in our models to make it do what we want, rather than leave it to its own devices and try and get something useful out of that.

      While design patents have fuck all problem there. And if your design is poor, you can just claim that users are holding it wrong and everything's golden.

    14. Re:Nope by Anonymous Coward · · Score: 0

      You should have kept reading. It ended with "courage".

    15. Re:Nope by TechyImmigrant · · Score: 1

      I figured, but those ACs all look alike.

      --
      I should use this sig to advertise my book ISBN-13 : 978-1501515132.
    16. Re:Nope by Anonymous Coward · · Score: 0

      Compared to Apples highly innovative copying of Pythagoras's triangle work, and just adding an extra side.

    17. Re:Nope by PortHaven · · Score: 1

      Actually I agree... 98% of patents are in fact not innovative inventions noteworthy for patenting. And our patent system is fundamentally broken and largely just a means of large companies maintaining dominance.

      But I couldn't fit all that in the original satire.

    18. Re:Nope by TheFakeTimCook · · Score: 1

      Actually I agree... 98% of patents are in fact not innovative inventions noteworthy for patenting. And our patent system is fundamentally broken and largely just a means of large companies maintaining dominance.

      But I couldn't fit all that in the original satire.

      Actually, you could have; but it would have seriously ruined the "meter" of your ridiculously oversimplified, Apple-Hating rant.

  5. Qualcomm by Anonymous Coward · · Score: 1

    When I've seen the name Qualcomm in news headlines, its technology related 50% of the time, and trade violations related 50% of the time. They are the smartphone processor market leader and they got it with cutthroat tactics. South Korea fined them over $800 million in December. http://www.anandtech.com/show/10942/south-korea-qualcomm-anti-trust-fine

  6. Meanwhile, they ignore royalties owed to Ericsson by Anonymous Coward · · Score: 2, Informative

    for real, bonafide, genuine inventions in radio-communication (unlike their own go-sue material, shapes of buttons on a screen and what direction they slide in), and they refuse paying Ericsson simply because they are confident their dishonest American courts will side with them so they can get away with it.

    A bunch of dishonest fuckers and hypocrites is what Apple's management are.

  7. Who cares —Where's my Mac Pro Tower by sandbagger · · Score: 1

    No more machines made for vegetarians. Give me my data truck.

    --
    ---- The above post was generated by the Turing Institute. Maybe.
    1. Re:Who cares —Where's my Mac Pro Tower by Moof123 · · Score: 0

      Seriously! Not sure why a company that big and rich can't roll out updated hardware every year or so. The lineup of desktop stuff is quite sad and embarrassing.

    2. Re:Who cares —Where's my Mac Pro Tower by epine · · Score: 0

      Not sure why a company that big and rich can't roll out updated hardware every year or so.

      Try some simple algebra. Let C=cartel. Let O=oligopoly. Solve for L=lucre.

    3. Re:Who cares —Where's my Mac Pro Tower by Anonymous Coward · · Score: 0

      Um, perhaps BECAUSE it is made in America ?

      Perhaps the retooling costs are so high, the number of sales so low, it simply no longer justifies the investment.

      IF it was being made in China, perhaps we would have had an update by now, the economics would have been different.

    4. Re:Who cares —Where's my Mac Pro Tower by TheFakeTimCook · · Score: 2

      Seriously! Not sure why a company that big and rich can't roll out updated hardware every year or so. The lineup of desktop stuff is quite sad and embarrassing.

      The last MacBook Pro was 2015. The new one is 2016. Sounds like "about a year" to me...

      The last iMac was late 2014. The new one was supposed to be about the same time in 2016, but, from what I have read, Intel is behind in releasing the CPUs they want to use. Look for a mid 2017 release. Hopefully, that will tricke-down to a new Mac mini...

      As for the Mac Pro, again, it is Intel that has been holding up the works. There have been new Xeons released; but, not only are they not significantly faster, a lot of the variants are simply not suitable for use in the MAC Pro. FORTUNATELY, that is no longer the case, because the Skylake-based Xeons that would allow the Mac Pro to move to the highly-desirable USB-C/TB3 for all I/O are (finally) scheduled for early 2017 production, which means that Apple has probably had Engineering Samples for a few months now. Hopefully, that will translate into an updated Pro around the same time as the new iMac and mini.

  8. How can this be? by Anonymous Coward · · Score: 0

    If Apple is the buyer of Qualcomm technologies, and purchases their modems etc, and additionally licenses their technologies, how can Qualcomm withhold *anything* much less a billion dollars? Isn't the exact opposite the case -- Apple owes Qualcomm and can withhold from them instead?

    1. Re: How can this be? by Anonymous Coward · · Score: 0

      Coupons! Except they expired and Apple is having a hussy fit

    2. Re: How can this be? by Anonymous Coward · · Score: 0

      Classic apple!!

  9. Hypocrites by Anonymous Coward · · Score: 0

    Apple is sitting on $300 billion because they are following the law and don't want to pay it out . Sounds like Qualcomm is also acting within the law while sitting on Apple's billion dollars and not wanting to pay it out.

  10. You made your bed with patent wars Apple by Anonymous Coward · · Score: 0

    Time to lie in it.

    If Apple chose to do so, they could use their enormous wealth to lobby for patent reform. Since they have shown no signs of doing this, I have to assume that they are very happy with the current system, despite the phony outrage,

    1. Re: You made your bed with patent wars Apple by Anonymous Coward · · Score: 1

      Hahaha, you funny. Apple is an amazing patent troll. They, however, were smart enough to buy mindshare.

  11. Eudora is dead by Anonymous Coward · · Score: 0

    Funny how things turn out, isn't it?

    1. Re:Eudora is dead by sandbagger · · Score: 2

      I loved Eudora. A great mail client.

      --
      ---- The above post was generated by the Turing Institute. Maybe.
  12. Because greed by Anonymous Coward · · Score: 0

    Qualcomm has taken a few hits recently so Apple is taking as many cheap shots as they think they can get away with. Kicking Qualcomm while they are down because the sharks smell money.

  13. Easy solution by Anonymous Coward · · Score: 0

    (1) Get a legal judgment, (2) walk into their headquarters with the sheriff to start seizing their computers to auction to pay the judgment. Same thing I'd do with Trump if I ever had to deal with that scumbag.

  14. Apple is a f*cking liar by Anonymous Coward · · Score: 0

    They are just using their legal team to be as evil as possible on the front end and try to intimidate some other unnamed third parties. Now that they are starting to lose big on the back end as their ludicrous judgements are being overturned they fear widespread knowledge that they are intellectual pussies and may have to pay for their predatory practices.

  15. OK, I'm confused... by GerryGilmore · · Score: 2

    If Apple is making regular royalty payments to Qualcomm. If so, how does this statement from Apple that QC is "withholding nearly $1 billion in payments from Apple as retaliation for..." make any sense? Is QC refusing to cash the check? Asking for bigger payments? Genuinely confused.

    1. Re:OK, I'm confused... by Anonymous Coward · · Score: 0

      apple arranged a dirty deal with Qualcomm to screw everyone else over with basically a backdoor discount on royalties which comes as a rebate back from the company.

  16. Making iPhone cheaper by Anonymous Coward · · Score: 0

    Get screen and memory free from Samsung,
    Get System on Chip free from Qualcomm.
    Profit!

  17. Just keep innovating Qualcomm by planckscale · · Score: 1

    Apple is no longer innovating and creating unique products that consumers want. If Qualcomm keeps doing what it does best, they can hopefully outpace the deluge of lawsuits & IP thefts from every side. Unfortunately, this seems to be the trend for any new technology from arduino kits to Raptors.

    --
    Namaste
    1. Re:Just keep innovating Qualcomm by Anonymous Coward · · Score: 0

      IF Qualcomm really pressured witnesses into false testimony (and were stupid enough to leave evidence), then it's going to be more serious than "lawsuits", people will end up in prison.
      What Apple alleges is that Qualcomm (or rather, several of its employees, likely with management approval) commited crimes that come with multi-year prison sentences.

  18. Qualcomm Should Sue Apple by Anonymous Coward · · Score: 0

    Reading the argument that Apple attorneys have put forward presumes and assumes the FTC does not understand what Apple Inc. does and what patents and licensing are and how they are used by Apple Inc. for market lock-out and cash-flow because each point raised by the Apple attorneys can be used exactly against them and Apple Inc.

    Therefore Qualcomm should sue Apple Inc. for $500 Billion dollars; approximately the sum of the cash Apple hoards in Chinese Communist Party Banks in Beijing, Hong Kong and Shanghai and the cash Apple hoards in Mafia controlled banks in Ireland, Netherlands and Italy.

    Q.E.D.

  19. Enough FFS by Godwin+O'Hitler · · Score: 2

    Is anybody, like me, sick of all these patent squabbles?
    Welcome to the 21st century shitpile.

    --
    No, your children are not the special ones. Nor are your pets.