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Qualcomm Says Apple Is $7 Billion Behind In Royalty Payments (bloomberg.com)

Last Friday in federal court, Qualcomm lawyer Evan Chesler said Apple is $7 billion dollars behind in royalties. "They're trying to destroy our business," he said. "The house is on fire and there is $7 billion of property damage right now." Bloomberg reports: Qualcomm wants as many as 56 patent-related claims and counterclaims cut from a lawsuit with Apple and its Asian manufacturers, arguing that these are just a sideshow to the broader licensing dispute between the companies. Apple, through its manufacturers, halted royalty payments to Qualcomm last year and the tech giants' showdown has escalated into some 100 legal proceedings around the world. Apple argues that Qualcomm is using its intellectual property to bully customers into paying excessive royalties even as it tries to duck scrutiny over whether its patents are valid. "You can't just let Qualcomm walk away from this," Apple's lawyer, Ruffin Cordell, told the judge at Friday's hearing.

116 comments

  1. Conflicted by Anonymous Coward · · Score: 2, Insightful

    Hard to say which of these companies is more evil at this point.

    1. Re:Conflicted by xpiotr · · Score: 0

      Hard to say which of these companies is more evil at this point.

      It's a little like Turkey calling out Saudi Arabia over the journalist killing.
      It's the right thing to do, even Erdogan is clearly not a good guy.

    2. Re:Conflicted by JaredOfEuropa · · Score: 1

      The right thing for the wrong reasons: Turkey is just taking a page from Putin's playbook and driving a wedge between the somewhat uneasy alliance between S.A. and the West.

      --
      If construction was anything like programming, an incorrectly fitted lock would bring down the entire building...
    3. Re:Conflicted by mangastudent · · Score: 5, Insightful

      Hard to say which of these companies is more evil at this point.

      Heh, although I'd put both at a lower tier of evil than a lot of the tech Left.

      However, from what I've read elsewhere, this boils down to Apple claiming patent exhaustion. That is, when Intel makes chips based on Qualcomm's patents (and they did reduce a lot of the concepts to working technology), and pays them for that privilege, Qualcomm can't then try to extract further payments downstream. It's akin to the first sale doctrine with copyrights.

    4. Re: Conflicted by gnasher719 · · Score: 2

      I would say Saudi Arabia murdered a journalist, and Turkey squeezes their balls for it. As any country should in that situation.

    5. Re:Conflicted by mentil · · Score: 0

      To be fair, Saudi Arabia has only been an ally to the US because we wanted to secure their oil, rather than because we have anything in common or like their government. Thanks to fracking, we have basically no dependence on them any more, and they're more of a burden we'd be better off shedding. Their recent liberalization is probably in part to help stave off a 'liberation'.

      --
      Corruption is convincing someone that the selfless ideal is the same as their selfish ideal.
    6. Re: Conflicted by Anonymous Coward · · Score: 0

      Regional stability is what itâ(TM)s called

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

      Hard to say which of these companies is more evil at this point.

      Heh, although I'd put both at a lower tier of evil than a lot of the tech Left.

      However, from what I've read elsewhere, this boils down to Apple claiming patent exhaustion. That is, when Intel makes chips based on Qualcomm's patents (and they did reduce a lot of the concepts to working technology), and pays them for that privilege, Qualcomm can't then try to extract further payments downstream. It's akin to the first sale doctrine with copyrights.

      Yeah, wouldn't that be a wonderful business model if it was possible. Qualcomm charges Intel for using their patents. Intel sells the resulting chips to Apple, Samsung, HTC, etc... and Qualcomm charges them for using Qualcomm patents. Apple, Samsung, HTC, etc... then sell their products to a retailer and the retailer then pays Qualcomm for use of their patents. The retailer then sells the device to you and you pay Qualcomm a fee for using their patent. You flog the phone on Ebay, the new owner then pays Qualcomm a fee for using their patent.

    8. Re: Conflicted by funky_vibes · · Score: 1

      Saudi was created by the west and is expected to act this way.
      Not exactly an accident. This is what happens when you create dictatorships and monarchies.

    9. Re: Conflicted by Cmdln+Daco · · Score: 1

      Saud is a family name. It's a little like calling a country "Kennedy's Massachussets."

      It wouldn't sail in a more civilized region.

    10. Re:Conflicted by stealth_finger · · Score: 4, Insightful

      Hard to say which of these companies is more evil at this point.

      It's Apple.

      --
      Wanna buy a shirt?
      https://www.redbubble.com/people/stealthfinger/shop?asc=u
    11. Re:Conflicted by stealth_finger · · Score: 0

      To be fair, Saudi Arabia has only been an ally to the US because we wanted to secure their oil, rather than because we have anything in common or like their government. Thanks to fracking, we have basically no dependence on them any more, and they're more of a burden we'd be better off shedding. Their recent liberalization is probably in part to help stave off a 'liberation'.

      Fracking isn't the answer to everything and its get you gas not oil. Oh and earthquakes.

      --
      Wanna buy a shirt?
      https://www.redbubble.com/people/stealthfinger/shop?asc=u
    12. Re: Conflicted by Anonymous Coward · · Score: 0

      I would say Saudi Arabia murdered a journalist, and Turkey squeezes their balls for it. As any country should in that situation.

      It's still the pot calling the kettle black.

    13. Re: Conflicted by RoccamOccam · · Score: 2

      Or just Washington. Oh, wait ...

    14. Re:Conflicted by magusxxx · · Score: 1

      So, it's kinda like...

      A rancher charging a fee to sell his beef to a butcher.
      The butcher charging a fee to sell it to a restaurant.
      The restaurant charging a fee to sell it to the customer.

      And all of those fees include a markup because an organized crime family wants protection money from all three.

      And in this case the protection is from litigation.

      --
      Care killed the cat, but satisfaction brought it back.
    15. Re:Conflicted by Anonymous Coward · · Score: 0

      Exactly.. No question. Period.

    16. Re:Conflicted by MightyYar · · Score: 2

      IP law is not a moral issue, it is one of law. Both companies are playing games with the law - trying to get what they can out of it. It's not about good vs. evil, it's about people responding rationally to the incentives they have in front of them. Ultimately, it's about whether the law is having the intended effect or not and - short of illegal behavior - that is where the remedy lay.

      --
      W..w..W - Willy Waterloo washes Warren Wiggins who is washing Waldo Woo.
    17. Re:Conflicted by Anonymous Coward · · Score: 0

      Apple by a huge margin

    18. Re:Conflicted by mrbester · · Score: 1

      Definitely. There is a contract in place that says "pay the fucking royalties".

      If I disputed how much tax I was to pay and refused to pay it, claiming that an ongoing case was going to sort it all out I'd get sent down because the current situation is "pay the fucking tax". If subsequently it turns out I paid too much, then I can use that ruling to get my money back.

      Pay your fucking bills, Apple. You can afford it, and if you win the case then you can take Qualcomm to the cleaners.

      --
      "Wait. Something's happening. It's opening up! My God, it's full of apricots!"
    19. Re: Conflicted by Anonymous Coward · · Score: 0

      And why is there this blackout on Slashdot about the ongoing bans on social media to destroy free speech? Why does Slashdot not have a story on Gab?

    20. Re:Conflicted by Anonymous Coward · · Score: 0

      Not actually the same, you'd have to change it to this to be the same:

      A rancher charging a fee to sell his beef to a butcher.
      The rancher charging a fee to sell it to a restaurant.
      The rancher charging a fee to sell it to the customer.

      A tax analogy would be been better:

      Government charging a tax to rancher to sell his beef to a butcher.
      Government charging a tax to sell it to a restaurant.
      Government charging a tax to sell it to the customer.

    21. Re:Conflicted by Anonymous Coward · · Score: 0

      A word counts for nothing with Apple and even a contract only counts if you are willing to take them to court. They back out of or change onesidedly done deals all the bloody time, it's just that with Qualcomm the numbers are big enough and Qualcomm has the legal budget to take them to court. Even Qualcomm only raised the stink when the un-payed bills ran into billions, what do you think, how long has Apple really been dragging it's feet with these payments? This kind of behavior raises some serious questions about that supposed mountain of cash they are sitting on. If you had more cash available than you knew what do with would you leave bills un-payed? I wouldn't. How many billions are they supposed to have in cash anyway? 100 plus? Would you keep such a sum as cash? I wouldn't. Something stinks about the whole thing.

    22. Re:Conflicted by Anonymous Coward · · Score: 0

      When you're dealing with billions of dollars they don't like to keep it liquid, 7 billion today paid out in a year not only benefits from inflation (less effectively paid later,) but it also is like a 7 billion dollar loan with zero interest (or at most, inflation-adjusted interest.) To top that off, if they can hold out long enough to drain Qualcomm in legal fees that it gets dropped outright and they win as a result they get to keep it all. They have every reason to drag it out as long as possible as a result. Both companies are in the wrong, and the whole patent system needs to just be abolished at this point - or at the very least returned to its origins. Patents were designed for individual inventors to protect their work while seeking funding to bring that work to market, not to be traded between corporations and licensed out. Corporations should outright be unable to have any rights, directly through holding patents or indirectly through licensing from individuals, to utilize patents in any way shape or form. They are meant for garage tinkerers to come up with things and take them to market without getting muscled out, not for megacorporations to use as a tool to muscle others out (the fact they are fighting one another is just another absurdity at this point, and entirely without issue as in the existing system that's more a feature than a bug.)

    23. Re: Conflicted by Anonymous Coward · · Score: 0

      Isn't that what got us into 'Nam?

    24. Re: Conflicted by Joce640k · · Score: 1

      It's still the pot calling the kettle black.

      Any self respecting country would break relations with both of them.

      But The Donald likes the Saudis, he gets along well with them.

      (Translation: He likes the way they spend money when he's around...)

      So what are we gonna do?

      --
      No sig today...
    25. Re:Conflicted by Joce640k · · Score: 1

      Fracking isn't the answer to everything and its get you gas not oil. Oh and earthquakes.

      Don't forget the poisoned groundwater.

      --
      No sig today...
    26. Re:Conflicted by Anonymous Coward · · Score: 0

      With success (and size) comes responsibility. I know that's 'unamerican' to suggest anything should ever get in the way of a company's god-given right to make a profit, but here in the rest of the world, we think there ought to be some corporate responsibility.

    27. Re:Conflicted by Anonymous Coward · · Score: 0

      Both companies are playing games with the law - trying to get what they can out of it.

      All companies does that.

      That is why you need strong regulations. Companies will do whatever you permit them to.

    28. Re: Conflicted by Anonymous Coward · · Score: 0

      Fracking produces both gas and oil depending on where you do it.

    29. Re:Conflicted by Joce640k · · Score: 1

      Hard to say which of these companies is more evil at this point.

      Heh, although I'd put both at a lower tier of evil than a lot of the tech Left.

      However, from what I've read elsewhere, this boils down to Apple claiming patent exhaustion.

      Yeah, wouldn't that be a wonderful business model if it was possible.

      If Apple signed a contract they should honor it, not take the goods then welch on the deal when it's time to pay for them.

      --
      No sig today...
    30. Re:Conflicted by LynnwoodRooster · · Score: 2

      Not really. It's Apple. There are alternatives out there (you can get completely Qualcomm-free cellphones). Apple wants the best (Qualcomm) but doesn't believe they have to pay what Qualcomm wants. I guess we could all "pull an Apple", walk into an Apple store, pick up a Macbook, offer $500, and when the "genius" doesn't accept - we walk out with it, and say we're going to sue to put it at a price that WE think is fair...

      --
      Browsing at +1 - no ACs, I ignore their posts. So refreshing!
    31. Re:Conflicted by mangastudent · · Score: 1

      An AC here covered it pretty well, but to directly address your analogy, the butcher and restaurant charge fees because they add value to what the previous entity in the chain sold to them. The restaurant is not selling me a whole cow, or a raw steak.

      So in this instance, Intel pays Qualcomm for their special intellectual property sauce, but adds a whole lot of value by making a physical chip with firmware etc. Apple adds a whole lot of value by taking that chip, adding more chips, widgets, a body, more firmware and software, etc. and turns them into a complete, ready for the consumer phone.

    32. Re: Conflicted by Anonymous Coward · · Score: 0

      Yeah pretty cut throat these days they all play dirty. Apple is not saint and Qualcomm why did they wait so long for these payments to build up? Most likely because of court tie ups. So they air their laundry out in public to make the other look bad I guess.

    33. Re: Conflicted by Anonymous Coward · · Score: 0

      Like the UK?

      You think the queen doesn't have power? You are deluded.... she could technically do what ever she wants.... she just knows that her subjects are too educated to pull that shit on.

      Wait till and idiot gets on the throne and realise that the non interference is just a transition and realise the extend of power he actually have.

      Education is the best defence from tyranny. Not democracy.... because it's harder to pull shit off an educated populace.

      The problems the US is having is an education crisis. Look the US still have the best educational institutions in the world....but the problem is the education of the general populace. It's horrific if you are not rich enough to go for quality.

    34. Re: Conflicted by Anonymous Coward · · Score: 0

      Sorry... "an idiot" .... not "and idiot"

      "Tradition" not "transition"

    35. Re: Conflicted by Gavagai80 · · Score: 3, Informative

      There's nothing wrong with maintaining relations with any country. What's wrong is being their arms dealer, military trainer, UN proxy vote, and being silent or backing them up on every atrocity they commit.

      (As Canada demonstrated, speaking up honestly may cause the Saudis to unilaterally break relations -- but that's their choice.)

      --
      This space intentionally left blank
    36. Re: Conflicted by robsku · · Score: 1

      My country, Finland, thinks it's fun to sell weapons to Saudis. This is rich from so called "neutral" country. I want everyone to know this, because that crap has to stop!

      --
      In capitalist USA corporations control the government.
    37. Re: Conflicted by Anonymous Coward · · Score: 0

      I don't believe that fracking has the remotest possibility to substitute for Saudi oil considering much of fracking is for gas and not oil.

    38. Re: Conflicted by UnknowingFool · · Score: 1

      Well in this case, Apple's argument is saying that the rancher wants a fee from the restaurant even though the restaurant paid the butcher and the butcher paid the rancher.

      --
      Well, there's spam egg sausage and spam, that's not got much spam in it.
    39. Re: Conflicted by UnknowingFool · · Score: 1

      Except that's not exactly what is being claimed by Apple (and others). Qualcomm licenses their IP so that companies can make chips but other companies must pay Qualcomm directly if they buy chips from a licensee. What Apple is claiming is that Qualcomm wants licensing on chips even though Apple doesn't buy those chips from Qualcomm.

      As an analogy if ARM licenses to Samsung to make chips, ARM doesn't require licensing from anyone who buys a Samsung ARM chip. Qualcomm's complicated licensing agreements involve all sorts of payments and rebates.

      --
      Well, there's spam egg sausage and spam, that's not got much spam in it.
    40. Re: Conflicted by Anonymous Coward · · Score: 0

      Except that's not the problem. Qualcomm IP portfolio practically demands they get payment on anything cellular related. In this specific case, if you buy a chip that someone else has made that has Qualcomm tech, Qualcomm also demands a IP payment even though you never dealt with Qualcomm and IP exhaustion should be in place.

    41. Re: Conflicted by UnknowingFool · · Score: 1

      Did Apple sign a contract with Qualcomm for this scenario or did Apple sign a contract with a 3rd party and Qualcomm is trying to include that contract into their generic contract?

      --
      Well, there's spam egg sausage and spam, that's not got much spam in it.
    42. Re: Conflicted by LynnwoodRooster · · Score: 1

      IP exhaustion is only in place if there is hard contracts that exhaust it. A lot of times vendors are licensed to make chips with IP in them - but NOT licensed to sell them without paying a use tax. Usually that use tax/license is passed to the purchaser to pay. In this case Apple - who doesn't want to pay what it is legally required to pay (and did pay for the better part of a decade, until it decided it was "too much").

      --
      Browsing at +1 - no ACs, I ignore their posts. So refreshing!
    43. Re:Conflicted by Anubis+IV · · Score: 2

      If Apple signed a contract they should honor it, not take the goods then welch on the deal when it's time to pay for them.

      1) Apple actually is honoring the contract inasmuch as they should, given that they're contesting the legality of it in court. With the court's permission, they've been setting the money aside in an escrow account, with interest, pending the case's outcome.

      2) This whole case started because Qualcomm was breaking the terms of the contract by failing to pay Apple $1 billion in rebates that were owed in the year prior to the case being launched. Qualcomm was contractually obligated to make rebate payments to Apple to cover the manufacturers' licensing fees, that way Apple wouldn't have to pay to license IP that had already been licensed. Qualcomm stopped making those payments (for no apparent reason, I'll add), so Apple sued.

      3) If a contract contains illegal, illicit, or invalid terms, it's (at least in part) not binding. Given that recent US case law came down fairly clearly on Apple's side with regards to patent exhaustion (and that regulatory bodies around the world have been nailing Qualcomm to the wall for this practice), it seems likely that this part of their contract will be invalidated and will need to be reworked or removed.

      4) Regardless of the legality of the contract, Apple was seemingly content to abide by it so long as the rebate payments kept coming in (i.e. so long as Qualcomm's illicit behavior didn't affect their bottom line), but with Qualcomm failing to make those rebate payments and the courts setting strong precedent against behavior like Qualcomm's around that time, Apple wasn't about to let Qualcomm's lack of payments slide.

      If you want to make an argument that Apple is acting unethically, the better place to look at isn't their contract with Qualcomm, but rather how they're handling their manufacturers. Apple ordered its manufacturers to withhold their licensing payments from Qualcomm until the case is resolved, and added some teeth to their order by withholding those funds from their manufacturers. Those funds aren't being held in escrow (so far as I know), and their manufacturers aren't paying those funds to Qualcomm, meaning that Qualcomm is doubly put out, since they're not getting licensing fees from either the manufacturers OR Apple until this case is resolved.

      That's Apple playing hardball there, and if you want to object to some aspect of their behavior with regards to this case, that's where I'd start.

    44. Re:Conflicted by Anonymous Coward · · Score: 0

      Qualcomm will whine to Daddy trump about it.

    45. Re: Conflicted by mysidia · · Score: 1

      So Apple is a 1 Trillion $$$ company and Qualcom is a 90 billion$ company.
      Why doesn't Apple just fork over the 90 Billion to Buy out Qualcomm and thus (1) Make their problem go away, and
      (2) Create a problem for competing phone makers by increasing IP license costs at every opportunity.

    46. Re: Conflicted by LynnwoodRooster · · Score: 3, Insightful

      Because that is $90 billion, and Apple is cheap. They could just pay the $7 billion in back royalties (royalties that Apple customers ultimately already paid for), and be done with it, too. But that's not the Apple way. The Apple way is to extort every penny you can out of the entire supply chain, let the rest of the industry do all the R&D/innovation, and then gallop in on unicorns and claim they invented it all for the betterment of all mankind at shockingly low prices (never mind they are over priced), because their legion of followers will accept whatever comes down the pipe as the Latest Greatest Thing.

      --
      Browsing at +1 - no ACs, I ignore their posts. So refreshing!
    47. Re: Conflicted by BlackOverflow · · Score: 0

      Shouldn't you keep those weapons for when Russia decides to invade next time?

    48. Re: Conflicted by mrbester · · Score: 1

      Which Apple has already agreed to, hence "stopping payments", which means they had been making them before. Thus there is a contract.

      --
      "Wait. Something's happening. It's opening up! My God, it's full of apricots!"
    49. Re:Conflicted by Anonymous Coward · · Score: 0

      What makes you say that?

      What if you bought an peach pie from a bakery and went to sell it by the slice at your restaurant and then the peach orchard owner came and demanded money from your restaurant?

      That is what is happening here in a nutshell.
      Seems like a patent exhaustion issue to me unless there are others.
      Know of any others?

    50. Re: Conflicted by UnknowingFool · · Score: 1

      Cite your evidence

      --
      Well, there's spam egg sausage and spam, that's not got much spam in it.
    51. Re: Conflicted by edi_guy · · Score: 1

      I hope it's a very, very clever stealth bomber Finland is selling. "Yes it is invisible to RADAR, infrared, visible, basically the entire EM spectrum. It also works through a quantum tunnel cloak so that you can't even touch or feel it. The price...only $300 million each, less than an F-22! sure sign here, and we'll personally fly them to your base!"

    52. Re: Conflicted by pgmrdlm · · Score: 1
      --
      Anonymous comments are as pathetic as the anonymous "sources" that contaminate gutless journalism from the New York Time
    53. Re: Conflicted by Darth · · Score: 1

      under the agreement apple had with qualcomm, qualcomm gave apple rebates on those payments. however, qualcomm stopped giving the rebate as a punitive measure for apple cooperating in the korean fair trade commission's investigation into qualcomm's licensing practices. so, it sounds like qualcomm was in breach of that agreement first and apple stopping payments under the agreement was appropriate.

      the korean fair trade commission ultimately fined qualcomm $853 million. the ftc has also sued qualcomm for the same practices.

      --
      Darth --
      Nil Mortifi, Sine Lucre
    54. Re: Conflicted by Cmdln+Daco · · Score: 1

      Washington is not run by a dynasty of Washington family members.

    55. Re: Conflicted by funky_vibes · · Score: 1

      Yes, but democracy is a direct result of education. That's why the world hasn't experienced it for 2300 yrs.
      It is also why fascist governments now push legalisation of marijuana and education only creates factory workers and bureaucrats.
      The right ignores what the people want and the far right feeds the stupid people with what they want to hear. There is no meritocracy, technocracy, or left, but people still imagine they have a choice.

    56. Re:Conflicted by stealth_finger · · Score: 1

      It's the gift that keeps on giving...

      --
      Wanna buy a shirt?
      https://www.redbubble.com/people/stealthfinger/shop?asc=u
    57. Re: Conflicted by Anonymous Coward · · Score: 0

      Yeah, cause he'll have access to those commercial in confidence contracts....

    58. Re: Conflicted by RoccamOccam · · Score: 1

      Sure. This falls under the category of "If I had made a different point, then your rebuttal would be wrong." Also, look at Moving the Goalposts Fallacy.

    59. Re: Conflicted by UnknowingFool · · Score: 1

      Then it's an unproven assertion.

      --
      Well, there's spam egg sausage and spam, that's not got much spam in it.
    60. Re: Conflicted by Anonymous Coward · · Score: 0

      Because we are not Nazis and so the plight of Nazis and those you profit off them is not out top concern. Go buy bitcoin and send it to them you little incel, wannabe internet tough guy.

      To be clear, we are not advocating the government shut them up, and to be extra clear, the government is not shutting them up. The free market is deciding they would rather do business with people that don't like gab than those who do.

      So please go buy some bitcoin from a shady site, get your bank account hacked and your wallet stolen, and then whine somewhere (else) about why it is all the fault of gay, Muslim, Mexican, drug hauling, atheists that you lost your job at the shop and save because of Jews. Definitely don't blame the drinking and meth.

  2. Apple says they owe nothing by gnasher719 · · Score: 4, Insightful

    Actually, the matter is in court and a court will decide how much Apple owes. $7bn is not what Apple owes, itâ(TM)s what Qualcomm would want in their wildest dreams.

    1. Re:Apple says they owe nothing by Anonymous Coward · · Score: 0

      itâ(TM)s what Qualcomm would want in their wildest dreams.

      No, in their wildest dreams they want a lot more than that.

      This is what they think is a reasonable starting point for negotiating a settlement.
      Low enough to not be laughed out of court and high enough that they can feel good about settling for a fraction of what they ask for.
      At $1bn both parties can walk away from the table happy with themselves.

    2. Re:Apple says they owe nothing by Anonymous Coward · · Score: 0

      Apple would rather don't pay anything to anybody, be it taxes or royalties. If you want money from them you better lawyer up.

    3. Re:Apple says they owe nothing by Anonymous Coward · · Score: 0

      says the uneducated morphidite.

    4. Re:Apple says they owe nothing by quenda · · Score: 1

      well, to Apple, $7b *is* nothing. They could probably raise it by looking under the cushions at Apple Park.

    5. Re:Apple says they owe nothing by Anonymous Coward · · Score: 1
      They behave a lot as if they didn't actually have money to pay with. They declare that they have a humongous mountain of cash, yet they are not really doing much with it. They are not expanding their product portfolio that much, they are not paying bills if they can help it, they are not acquiring companies, they are not doing some insane R&D, they are not branching out to new directions, nothing, except building a shiny spaceship headquarters and that was just 5 billion. Not the most sensible use of money in the world, but then again not that much in relation to how much they say they have. What exactly are they keeping such a sum for, just for it to rot away from inflation? Is it possible they are fudging the numbers and they in fact don't have nearly as much cash as they say they do? Wouldn't be the first company in the world to pull something like that.

      The thing with cash is, it's for using, not for sitting on. Nobody sits on 250+ billion in cash, except Apple apparently.

      To me, things don't add up. I see perhaps only one way it could make sense, if Apple was expecting iFad to eventually die out and they were preparing to rebuild their business from scratch if it did. That would require having a ridiculous sum of cash in reserve, because cash is the only thing that would not lose value along with everything else connected to their company should this actually happen.

    6. Re:Apple says they owe nothing by Anonymous Coward · · Score: 0

      With how much profit margin they have on their products it isn't hard to believe that they have as much money as they claim.
      It is, as you say, very hard to believe that they just let them money rot instead of investing it somewhere.

      Occam's razor says that they are investing it but needs to keep it secret for illegal reasons. (Tax purposes or other.)

    7. Re:Apple says they owe nothing by Anonymous Coward · · Score: 0

      They can't bring the money back to the US without paying a huge amount of US corporation tax. (In the US, corporation tax on foreign earnings isn't due until you bring the money back to the US).

      They actually borrowed a chunk of money in the US because it's cheaper to pay interest on a loan than it would be to bring their own money back to the US.

    8. Re:Apple says they owe nothing by rkordmaa · · Score: 1
      Investing in what though, nothing in what their core business is doing reflects towards massive investments under the table. The amount of money they should have to throw around should buy them some really swanky R&D to put towards their core business. But it doesn't show. Are they investing in things unrelated to their own business? That wouldn't make much sense, that's just not in "how to build your megacorp" handbook. Maybe they have the regular expenses just ridiculously high and it eats up all the margins, could be, wouldn't be first corporation to fail in this way. It's easy to spend oodles of money and get very little done.

      I obviously don't know, but something stinks, this is not how successful megacorps operate, ever. Look at Google in comparison, what are they doing with their money. They stuff it down every hole that looks even remotely promising, some of it has been very successful indeed, most less so. But the main thing is they are constantly looking for their next big break on every front they can think of. That's what you do if you are swimming in money and plan to stay around long term, unless your core business is so cushy that you can just rest on your laurels. Basically anyone who is not an oil giant, military contractor, power company or some-such is constantly bending over backwards to find their next big cashcow. Apple just keeps milking their old one and stuffs the leftover money under mattress. Makes no sense whatsoever.

    9. Re:Apple says they owe nothing by Orrin+Bloquy · · Score: 1

      > itâ(TM)s
      Does your browser automatically try to convert the apostrophe character to the curly-quote version and if so, what browser is it? I do web dev and this seems unusual behavior.

      --
      "Made up/misattributed quote that makes me look smart. I am on /. and I must look smart."
  3. era of open & honest communications & comm by Anonymous Coward · · Score: 0

    have to fit that in between all the greed fear ego based hoopla? cease fire stand down,, there's more than enough imaginary digits to go around.. we may even each get our own planet (more than enough available) after the genocidal corepirate nazis flee with all the loose digits again? no heart no spirit no life.. in the moms we trust..

  4. Good comment by Futurepower(R) · · Score: 2

    Steve Jobs was good at presenting Apple and Apple products in a sensible manner.

    The present Apple CEO, Tim Cook, apparently does not have much ability to direct communication about a company.

    (Jobs was very abusive in other ways. For example: The memoir by Steve Jobs' daughter makes clear he was a truly rotten person whose bad behavior was repeatedly enabled by those around him) (Aug. 26, 2018)

    1. Re:Good comment by Uberbah · · Score: 1

      RE Steve bing a dick:

      1) Women have a preeeetty good idea who they give birth to. Men - not so much. Before reliable DNA testing, rejecting the idea that you are someone's father when you really don't think you are isn't so unreasonable.

      2) It's funny how these "Steve is a dick" anecdotes always seem to go back to the Reagan Administration - or earlier. If the guy was such a ragging shitheel, you'd think he would have give his hate club more material to work with since he went back to Apple in the late 90's.

    2. Re: Good comment by Anonymous Coward · · Score: 0

      What the fuck are you talking about? The fucking handicap parking scam wasn't just in the 90's. At least according to posted pictures of his asshole parking.

    3. Re: Good comment by Uberbah · · Score: 1

      What the fuck are you talking about?

      It was easy enough to understand the first time. Maybe ask a first grader to help you understand it?

  5. Qualcomm is screwed by Anonymous Coward · · Score: 0

    Apple can drag out any lawsuit until Qualcom runs out of money. Doesn't matter who's right and who's wrong.

    Plus, a foreign company suing a US company in a US court? Even Samsung can't win that.

    1. Re:Qualcomm is screwed by Anonymous Coward · · Score: 0

      Plus, a foreign company suing a US company in a US court? Even Samsung can't win that.

      Qualcomm is a US company.

    2. Re:Qualcomm is screwed by psmears · · Score: 1

      Apple can drag out any lawsuit until Qualcom runs out of money. Doesn't matter who's right and who's wrong.

      Plus, a foreign company suing a US company in a US court? Even Samsung can't win that.

      Are you saying that US courts are biased? Even if they are - Qualcomm and Apple are both US companies, right?

    3. Re:Qualcomm is screwed by Anonymous Coward · · Score: 0

      Are you saying that US courts are biased?

      Of course they are. Most courts around the globe are.

      Qualcomm and Apple are both US companies, right?

      Huh, I thought Qualcomm was Taiwanese or something thereabouts. Looks like I was wrong. They might actually have a fighting chance ... until they run out of money.

    4. Re:Qualcomm is screwed by Anonymous Coward · · Score: 1

      Yea, looks like I confused them with some other company.

      I would say it looks like you are a "make murica great again" idiot... can't see past your belly button, no wonder the confusion.

    5. Re:Qualcomm is screwed by Anonymous Coward · · Score: 1

      Huh, I thought Qualcomm was Taiwanese or something thereabouts. Looks like I was wrong. They might actually have a fighting chance ... until they run out of money.

      They won't. Qualcomm has a healthy business on the Android side of things too. You should refrain to comment about things you know nothing about.

    6. Re:Qualcomm is screwed by Anonymous Coward · · Score: 0

      Are you saying that US courts are biased? Even if they are - Qualcomm and Apple are both US companies, right?

      Yes, and yes.

      The courts are really biased and when both are US it will go after something else, like brand recognition.

    7. Re:Qualcomm is screwed by Anonymous Coward · · Score: 0

      Not everything in the world revolves around your Trump-derangement.

    8. Re:Qualcomm is screwed by Anonymous Coward · · Score: 0

      Don't get yourself stuck on stupid.

  6. Grandparent comment is sensible, it seems. by Futurepower(R) · · Score: 1

    Mistake: I should have been more clear when I titled my parent comment, "Good comment". I think the comment, the grandparent to this one, is sensible: "$7bn is not what Apple owes, it's what Qualcomm would want..."

    A more detailed story: Qualcomm Says Apple Owes It $7bn In Royalties. (Oct. 29, 2018)

  7. ... Qualcomm refused to answer [Apple] questions.. by Futurepower(R) · · Score: 3, Informative

    An earlier story: Qualcomm accuses Apple of stealing its secrets to help Intel. (Sept. 25, 2018)

    Quote: "Apple has cast doubt on Qualcomm's claims. Last month, it alleged that Qualcomm refused to answer its questions about which specific confidential information it had improperly shared with Intel. Apple has also alleged that it gave Qualcomm the chance to verify that Qualcomm's software had been used properly."

  8. haha by Anonymous Coward · · Score: 0

    If I owe you 1 million I have a problem.
    If I owe you 7 billion you have a problem.

  9. Not the first time, they also stole from Ericsson by Anonymous Coward · · Score: 0

    and it's not about Apple's style of patents, rounded squares, but real, genuine, bonafide patented radio techonology by Ericsson, and Apple refuses to pay patents because they know they can get away with it. U.S. courts are not fair and would never let a Swedish company succesfully sue their big beatiful Apple for billions.

    Apple is a thieving, dishonest bitch.

  10. Qualcomm can go fuck itself ! by Anonymous Coward · · Score: 0

    Qualcomm can go fuck itself !

    But then, Qualcomm is not alone.

    Corporations have become way too greedy, and we, the consumers ended up paying and paying, and then pay some more, for things that we have paid for.

    When we buy CDs or DVDs, the corporations tell us that we do not have the rights to create a copy of the songs / movie for safekeeping, and will sue us to financial hell if we do.

  11. Re:Who gives a crap about stinking apple by Megol · · Score: 1

    Idiot.

  12. Fuck apple by Anonymous Coward · · Score: 0

    pay your bills and your taxes.
    Qualcomm is not some screw manufacture that you can bully and squeeze every last dime from until you move on to the next one.
    Take heed Intel; this is the kind of company you are in bed with. Make sure apples checks clear before shipping them any product.
    What a cancer apple is.

    1. Re:Fuck apple by Anonymous Coward · · Score: 0

      that is the point, Apple pays intel for the radio chips, Intel already pays qualcom for the patent on radio ttechnology.
      Apple does not think it is correct that they have to pay qualcom again for the patent on radio technology.

      I find that morally reasonable from Apple's point of view.

      But the law says, that qualcom could even charge Apple customers individually for using an iPhone with an intel chip in it that contains the radio technology.

      In fact the MPEG-LA guys do this. They force the encoder-chip manufactorer to pay, then the camera manufacturer that uses the encoder chip, and then they also force the film maker (when film becomes popular) to pay for the film that was recorded by the camera that contained an encoder chip
      Even if the film maker had directly converted the film to another (non patented format) before editing, they will still need to pay royalty based on the number of viewers of the film.

    2. Re:Fuck apple by robsku · · Score: 1

      It's very disturbing that it's legal to do so.

      --
      In capitalist USA corporations control the government.
  13. Who to believe? by reanjr · · Score: 5, Interesting

    Do you believe the company who essentially invented wireless technology or do you believe the company that invented rounded corners?

    1. Re:Who to believe? by Anonymous Coward · · Score: 0

      Qualcomms patents roughly started with broad spread spectrum for US militart a long long time ago. Their chip is basically a tarted up 56K modem and AT command set, only adapted for a mobile phone. Its a jumped up modem. Besides Apple, the Chinese have had a gutful and have the paperwork to prove what is novel and what is not. However USA belives in evergreening with 'in a moble phone' in a smart phone, and in a smart phone with rounded corners. Appe would win, but I suspect Qualcomm is rooting is Texas for unjust handouts.

    2. Re:Who to believe? by mangastudent · · Score: 2

      Do you believe the company who essentially invented wireless technology

      Except Qualcomm was hardly the only company "inventing wireless technology". Their biggest claim to fame is reducing code-division multiple access (CDMA) to practice, but there are many other ways to split up spectrum. E.g. GSM started out with time-division multiple access (TDMA), a frequently slot is divided into time slots, each user gets one.

    3. Re:Who to believe? by drinkypoo · · Score: 1

      Do you believe the company who essentially invented wireless technology or do you believe the company that invented rounded corners?

      Neither. You have to be a useful idiot to believe any corporate PR.

      --
      "You're right," Fisheye says. "I should have set it on 'whip' or 'chop.'"
    4. Re:Who to believe? by brennz · · Score: 1

      Marconi is spinning in his grave

    5. Re: Who to believe? by houghi · · Score: 1

      How about neither?

      --
      Don't fight for your country, if your country does not fight for you.
    6. Re:Who to believe? by Shatrat · · Score: 1

      At how many herz?

      --
      09 F9 11 02 9D 74 E3 5B D8 41 56 C5 63 56 88 C0
    7. Re:Who to believe? by Anubis+IV · · Score: 3, Interesting

      How about believing both sides? It's an uncontested fact that Apple is withholding payments. Both sides will tell you that. What the reporting here is creatively omitting, however, is any mention of the fact that Apple received permission from the court to place the contested payments, with interest, in an escrow account until the case is resolved, which is standard practice in situations such as these.

      Keep in mind how this case started: Qualcomm failed to pay Apple $1 billion in rebates that were owed, seemingly for no reason at all. Those rebates were supposed to cover the fact that Qualcomm was double-dipping with their licensing fees by charging Apple's manufacturers a licensing fee (which then got passed on to Apple) for the right to manufacturer, then charging Apple a licensing fee for the right to sell the exact same IP. So long as Qualcomm kept making those rebate payments, Apple didn't complain. It was only when Qualcomm stopped making those payments that Apple sued for what they were owed and petitioned the court to let them keep the funds in escrow until the conclusion of the case. When Qualcomm pushed back, Apple raised the stakes by using recently-established precedent regarding patent exhaustion to assert that Qualcomm never had the right to demand those payments from Apple in the first place.

      But hey, don't let me stop you from relying on logical fallacies to make up your mind. Appeals to authority can be fun. Loaded questions too. To each their own.

    8. Re:Who to believe? by maestroX · · Score: 1

      Don't know about the wireless but the rounded corners is invented by your mommy!

    9. Re:Who to believe? by Anonymous Coward · · Score: 0

      I believe Apple over Qualcomm in this case.
      Also Qualcomm basically just came up with a halfway decent implementation of cdma, that's pretty much it.

    10. Re:Who to believe? by Anonymous Coward · · Score: 0

      Except that Spread Spectrum dates back to the beginning of World War II, and was invented by Heady Lamarr (A Hollywood starlet, no less), and composer George Antheil.

      Qualcomm didn't come around until 1985, more than 40 years later. Claiming Qualcomm invented wireless is about as credible as saying the Beatles invented music.

    11. Re:Who to believe? by thegarbz · · Score: 1

      Given how the matters being decided don't have to do with wireless technology or rounded corners but rather boring arse legal contracts, I'll go with whomever the courts tell me to believe.

    12. Re:Who to believe? by Anonymous Coward · · Score: 0

      Qualcomm is a company that stared making poor, next quarter focus decisions many years ago.

      For those of you who don't know, or don't remember. There was a time when there were two "worlds" of base cellular technology. GSM (which is what most world uses), and things like CDMA. CMDA was a proprietary technology, mostly "owned" by Qualcomm, and used heavy by several large US cellular networks.

      In the early early days of "4g" development, Quallcom went to the US Cellular companies and demanded a bounty to even be bothered to develop 4g tech. Qualcomm was sure that they would pay the bounty because ... otherwise they would be squished by the few US cell companies that used GSM when GSM 4g technology become prevalent. They we smugly sure that the US Cell companies using their tech wouldn't bother to go through the multi year hassle to switch (you basically have to run both a CDMA and GSM network in parallel for multiple years while you wait for people to buy GSM handsets).

      The US cell companies, tired of being jerked around by Qualcomm, called their bluff. Verizon plans to turn off the last of their 1x, 3g "qualcomm" gear in December 2019. On Jan 1, 2020 Verizon will have completed their transition from a CDMA based cellular provider to GSM. Sprint, US Cellular, and the others are all on the same path but with different dates.

      Qualcomm continues to evolve their primary business into holding patents and being a patent troll.

      It's a sad state to see a visionary tech company fall like this.

      What we're seeing here is the beginning of the death spasms of poor decisions made a decade ago.

    13. Re:Who to believe? by Anonymous Coward · · Score: 0

      A bit of American history revisionism there -- they did not invent wireless technology. You may want to inform yourself on what the real big players like Ericsson etc. have been doing the last five or so decades.

      But I agree with your point. Apple are a bunch of rotten shits.

  14. Re:Who gives a crap about stinking apple by Anonymous Coward · · Score: 0

    The antifa is still on Twitter.
    Antifa fights with weapons and losses badly so the Proud boys get kicked off Twitter.
    News flash Proud boys are a violent hate group for using self defense against weak pathetic betas who use pepper spray.

  15. Re:Who gives a crap about stinking apple by butchersong · · Score: 1

    Well technically it is the case that jihadi groups are on both facebook and twitter and Apple does not allow the Gab app on their ecosystem so I don't think the AC said anything factually incorrect.

  16. Coming from Apple... by robsku · · Score: 1

    This coming from Apple is so rich that it could be hilarious, if it wasn't so totally not hilarious.

    --
    In capitalist USA corporations control the government.
  17. Does this scream Jewish lawyer or what? by Anonymous Coward · · Score: 0

    Last Friday in federal court, Qualcomm lawyer Evan Chesler said Apple is $7 billion dollars behind in royalties. "They're trying to destroy our business," he said. "The house is on fire and there is $7 billion of property damage right now."

    âoeOy vey! Itâ(TM)s anudda Shoah I tells ya! Anudda Shoah!â

  18. Re:Who gives a crap about stinking apple by Megol · · Score: 1

    Free speech version of twitter - is that correct? Is stormfront the free speech version of slashdot? No.
    Attacked because some guy posted something? Not exactly correct given the attitude against Gab before that.
        But (not stated by the AC) is Gab "attacked" now because some guy not only posted something but also did something? It sure accelerated the banning.
    Was that posted "very conveniently"? No, that type of messages are posted all the time. The weak implication/hint of conspiracy is laughable.
    Are "jihadis" openly swarming all over twitter? Not exactly, depends on how it is defined though.
    Are the "jihadis" part of the "left"? Only in a very uneducated and/or confused brain. Neither left or right (politics) are synonyms with "everything I hate".

    All in all I think my assessment of the AC is correct.