Apple-Qualcomm agreement reaffirms leadership value in IP and technology

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In a huge gain for the US patent system and all intellectual property holders, Apple admits that Qualcomm's entire portfolio of patents, both standard essential patents and nonessential patents, is of interest in accepting a contract of approval. license and terminating all current hostilities targeting users. business. Apple has also tacitly acknowledged the leadership of Qualcomm's modem.

Just after closing arguments in the case at the heart of Apple's dispute with Qualcomm, both parties announced a settlement providing for the termination of all lawsuits, a six-year license of Qualcomm's intellectual property portfolio. as well as an agreement to purchase chipsets from Qualcomm. This dispute has resulted in manufacturers, courts and regulatory agencies under contract from Apple around the world, while both parties were preparing for what appeared to be a battle to the end. The seemingly quick settlement has surprised everyone and the ramifications are huge.

The first question that comes to my mind is: why now? With the decision of the FTC case against Qualcomm, which is essentially based on Apple's complaint, still in the hands of Federal Judge Koh, it seemed unreasonable to reach a settlement before the end of the FTC case. Is a decision expected in the case? Does the FTC and Qualcomm plan to settle? Nobody really knows. However, the details of the settlement offer a clue.

The fact that Apple has once again agreed to buy chips from Qualcomm for what is probably 5G versions of the iPhone seems to indicate that Apple was concerned about the timing of 5G modems from Intel, its current and unique provider. Just hours after the announcement, Intel has announced its release from the 5G smartphone modems market. According to TIRIAS Research, discords between Apple and Intel were growing because of the efforts made by Apple to develop its own modems. Apple is Intel's only customer for smart phones and investing in future technologies has been in vain if Apple plans to integrate its own modems into Apple's future mobile SoCs. However, Intel is still evaluating the possibilities of applications other than smartphones, which are widespread as Internet Object Devices (IoT) adopt 5G.

What does it mean for Apple?

This means that Apple could theoretically propose an iPhone 5G as early as spring 2020 if the company started right now to design Qualcomm modems in the upcoming iPhone models. TIRIAS Research thinks that Apple will likely continue its annual launch in the fall with a new range of iPhones, but will likely be offering a 5G version as early as spring 2020. This also means that Apple will concede under Qualcomm's 5G IP license and another license. under the fair, reasonable and non-discriminatory conditions established by ETSI, not only over the next six years, but throughout^th wireless technology generation. License for 6^th generation will depend on Apple's involvement in future IP standardization and development efforts, something that Apple has never done before. Thus, even if Apple develops and integrates its own modem technology, Qualcomm will continue to collect IP charges, even if the company ends up losing the Apple chipset market.

What does it mean for Qualcomm?

With most regulators around the world validating Qualcomm's wireless licensing model and pricing, including the recent decision by the Japanese FTC to abandon all challenges, Qualcomm's business model remains intact and viable. The agreement with Apple also guarantees that Qualcomm will provide modems and possibly RF chipsets for the first-generation iPhone 5G, but since Apple started late to develop modems, it could easily expand to both. or three next generations of iPhone. Note that most older 5G smartphones use Qualcomm's systems-on-chip, modems, and chipsets.

This will also prompt the FTC to settle or Judge Koh to rule in favor of Qualcomm in the FTC litigation. With other international regulatory decisions, at least one current decision of the US International Trade Commission (ITC) and other unfavorable judicial proceedings against Qualcomm, it would be hard to imagine a decision against Qualcomm in the FTC case. TIRIAS Research members attended some of the FTC's procedures and found the case of the FTC lacks both evidence of market influence or injury.

What does this mean for the industry?

This settlement represents a great victory for the US patent system and for all intellectual property rights holders, as one of the key arguments in Apple's lawsuit, and implicit in the FTC's pursuit, is that patents non-essentials are worthless. In the recent civil case related to the first ITC case, a jury found that only three patents from Qualcomm were worth US $ 1.40 for each handset using the technology. This is only a small fraction of Qualcomm's patent portfolio, which has more than 140,000 patents, mostly non-essential patents.

Apple's victory over these claims would have made it easier for licensees to cancel their license agreements and downgrade the patents of all US intellectual property holders, not just the wireless sector or technology. . Imagine a medical patent considered worthless because it was not directly related to the safeguarding of a human life. The entire US IP system can breathe a sigh of relief.

Last thoughts

The settlement will also put an end to Apple's predatory practices towards intellectual property rights holders and will ensure a degree of stability in the intellectual property licensing model for the mobile services sector. This is beneficial not only for smartphones and other mobile devices, but also for automotive applications and other industrial applications that want to take advantage of 5G. While TIRIAS Research predicted the end of this saga by the summer, the moment was still surprising. The result, however, benefits the entire high-tech sector.

The author and staff members of TIRIAS Research do not hold any interest in the mentioned companies. TIRIAS Research monitors and consults companies in the electronic ecosystem, from semiconductors to systems, sensors and the cloud. Members of the TIRIAS research team consulted for Apple, Intel and Qualcomm.

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In a huge gain for the US patent system and all intellectual property holders, Apple admits that Qualcomm's entire portfolio of patents, both standard essential patents and nonessential patents, is of interest in accepting a contract of approval. license and terminating all current hostilities targeting users. business. Apple has also tacitly acknowledged the leadership of Qualcomm's modem.

Just after closing arguments in the case at the heart of Apple's dispute with Qualcomm, both parties announced a settlement providing for the termination of all lawsuits, a six-year license of Qualcomm's intellectual property portfolio. as well as an agreement to purchase chipsets from Qualcomm. This dispute has resulted in manufacturers, courts and regulatory agencies under contract from Apple around the world, while both parties were preparing for what appeared to be a battle to the end. The seemingly quick settlement has surprised everyone and the ramifications are huge.

The first question that comes to my mind is: why now? With the decision of the FTC case against Qualcomm, which is essentially based on Apple's complaint, still in the hands of Federal Judge Koh, it seemed unreasonable to reach a settlement before the end of the FTC case. Is a decision expected in the case? Does the FTC and Qualcomm plan to settle? Nobody really knows. However, the details of the settlement offer a clue.

The fact that Apple has once again agreed to buy chips from Qualcomm for what is probably 5G versions of the iPhone seems to indicate that Apple was concerned about the timing of 5G modems from Intel, its current and unique provider. Just hours after the announcement, Intel has announced its release from the 5G smartphone modems market. According to TIRIAS Research, discords between Apple and Intel were growing because of the efforts made by Apple to develop its own modems. Apple is Intel's only customer for smart phones and investing in future technologies has been in vain if Apple plans to integrate its own modems into Apple's future mobile SoCs. However, Intel is still evaluating the possibilities of applications other than smartphones, which are widespread as Internet Object Devices (IoT) adopt 5G.

What does it mean for Apple?

This means that Apple could theoretically propose an iPhone 5G as early as spring 2020 if the company started right now to design Qualcomm modems in the upcoming iPhone models. TIRIAS Research thinks that Apple will likely continue its annual launch in the fall with a new range of iPhones, but will likely be offering a 5G version as early as spring 2020. This also means that Apple will concede under Qualcomm's 5G IP license and another license. under the fair, reasonable and non-discriminatory conditions established by ETSI, not only over the next six years, but throughout^th wireless technology generation. License for 6^th generation will depend on Apple's involvement in future IP standardization and development efforts, something that Apple has never done before. Thus, even if Apple develops and integrates its own modem technology, Qualcomm will continue to collect IP charges, even if the company ends up losing the Apple chipset market.

What does it mean for Qualcomm?

With most regulators around the world validating Qualcomm's wireless licensing model and pricing, including the recent decision by the Japanese FTC to abandon all challenges, Qualcomm's business model remains intact and viable. The agreement with Apple also guarantees that Qualcomm will provide modems and possibly RF chipsets for the first-generation iPhone 5G, but since Apple started late to develop modems, it could easily expand to both. or three next generations of iPhone. Note that most older 5G smartphones use Qualcomm's systems-on-chip, modems, and chipsets.

This will also prompt the FTC to settle or Judge Koh to rule in favor of Qualcomm in the FTC litigation. With other international regulatory decisions, at least one current decision of the US International Trade Commission (ITC) and other unfavorable judicial proceedings against Qualcomm, it would be hard to imagine a decision against Qualcomm in the FTC case. TIRIAS Research members attended some of the FTC's proceedings and found that the FTC's case lacked evidence of market influence or injury.

What does this mean for the industry?

This settlement represents a great victory for the US patent system and for all intellectual property rights holders, as one of the key arguments in Apple's lawsuit, and implicit in the FTC's pursuit, is that patents non-essentials are worthless. In the recent civil case related to the first ITC case, a jury found that only three patents from Qualcomm were worth US $ 1.40 for each handset using the technology. This is only a small fraction of Qualcomm's patent portfolio, which has more than 140,000 patents, mostly non-essential patents.

Apple's victory over these claims would have made it easier for licensees to cancel their license agreements and downgrade the patents of all US intellectual property holders, not just the wireless sector or technology. . Imagine a medical patent considered worthless because it was not directly related to the safeguarding of a human life. The entire US IP system can breathe a sigh of relief.

Last thoughts

The settlement will also put an end to Apple's predatory practices towards intellectual property rights holders and will ensure a degree of stability in the intellectual property licensing model for the mobile services sector. This is beneficial not only for smartphones and other mobile devices, but also for automotive applications and other industrial applications that want to take advantage of 5G. While TIRIAS Research predicted the end of this saga by the summer, the moment was still surprising. The result, however, benefits the entire high-tech sector.

The author and staff members of TIRIAS Research do not hold any interest in the mentioned companies. TIRIAS Research monitors and consults companies in the electronic ecosystem, from semiconductors to systems, sensors and the cloud. Members of the TIRIAS research team consulted for Apple, Intel and Qualcomm.