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Qualcomm won a victory today (March 15) in its ongoing legal dispute with Apple over patents on mobile phones, a jury awarding $ 31 million in damages to the chip maker.
Considering that Apple has achieved sales of just under $ 265.6 billion during its 2018 fiscal year, this $ 31 million judgment is likely to turn out badly. But this gives Qualcomm some legal backing for its argument that Apple has taken advantage of its technology, particularly with an even bigger court case looming next month.
"From a monetary point of view, it's not a win at all – both parties have likely spent as much as the amount of the court costs verdict," said Avi Greengart, founder and principal analyst. from the Techsponential research firm. "But this sets a precedent that Qualcomm's IP is worth even patents on items of a phone that are not directly related to wireless standards."
MORE: iPhone banned? Here's what's happening in Apple-Qualcomm Feud
The Apple-Qualcomm dispute goes back two years. Apple claims that Qualcomm charges royalties for activities that have nothing to do with it. Qualcomm responds that its patents covering the way phones connect to wireless networks are essential for today's smartphones, and calls for recognition – and royalties – in this regard.
"The technologies invented by Qualcomm and others are what has allowed Apple to enter the market and become so successful so quickly," said Don Rosenberg, Executive Vice President and General Counsel. Qualcomm, in a statement announcing the legal victory. "The three patents that have been infringed in this case represent only a small fraction of Qualcomm's valuable portfolio of tens of thousands of patents."
For its part, Apple has expressed its disappointment over the verdict in a statement provided to Tom's Guide. "The ongoing campaign regarding Qualcomm's patent infringement actions is nothing more than an attempt to divert attention away from the larger problems they face when investigating." their business practices in US federal courts and around the world, "the statement said.
What's next for Apple vs Qualcomm is much bigger
Qualcomm's legal victory today covers a case that is just one of the many legal conflicts that are unfolding in the courtrooms around the world. The most important case will be tried next month in San Diego, while a federal judge will determine whether Apple must pay royalties to Qualcomm for the iPhone. Qualcomm is also awaiting the decision of a judge in a case that ended in January when the Federal Trade Commission alleged that Qualcomm used anti-competitive practices to license its patents.
"Next month's case on licenses [between Apple and Qualcomm] Mr. Greengart said, "The stakes in this case are higher: dollar amounts are huge, and this goes to the heart of Qualcomm's business model."
Today's decision will likely have little impact on your future iPhone, but that could change pending the outcome of the upcoming lawsuits. "We will have to see how the next big trial will take place next month, but that could certainly have an impact on the dollar value associated with the basic wireless IP standard," Greengart said.
Qualcomm has won two legal victories at the end of last year abroad. In China, a court ruled in favor of Qualcomm that Apple had violated the chip maker's patents, although Apple is appealing this decision while publishing a software update in order to put the IPhone in accordance with the court decision. Apple has not been so lucky in Germany, where a Munich court has blocked the sale of some older iPhones using Intel chips. Other complaints from Qualcomm against Apple have been dismissed by German courts.
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