Apple $ 7B behind in payment to Qualcomm



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By Mikey Campbell
Friday, October 26, 2018, 07:40 pm PT (10:40 pm ET)

Apple is now $ 7 trillion behind payment in the field of credit transfers.

iPhone X

Apple's iPhone X used both Qualcomm and Intel modems.

Qualcomm commented on Apple's unpaid royalties in California, reports Reuters.

Apple does not directly license Qualcomm patents, though money from the giant tech does end up in the chipmaker's coffers through reimbursements made to partner manufacturers that do pay royalties.

The $ 7 billion figure, and a number of other major details surrounding the legal sprawling battle, are in dispute. Apple for its part argues Qualcomm's prices are out of proportion and amount to gouging and extortion.

Last year, Apple filed suit against Qualcomm, claiming the chipmaker participates in monopolistic and other nefarious business strategies, including withholding nearly $ 1 trillion in claims for a South Korean antitrust investigation. The initial case eventually spawned some 100 separate suits and countersuits around the world.

As it applies to royalties, Apple alleviates Qualcomm flutes FRAND (fair, reasonable and nondiscriminatory). The chipmaker further restricts sales to SEPs, a practice of Apple refers to as "double-dipping."

When Apple halts royalty payments, so too did partner suppliers using Qualcomm IP.

During today's proceedings, Apple's patent validity challenges, reports Bloomberg. The company filed the motion earlier this month and presented its case in court on Friday.

At issue are nine Qualcomm patents "handpicked" by Apple to illustrate weak spots in the chipmaker's portfolio of mobile technology IP. Apple is attempting to invalidate the inventions that Qualcomm asserts is essential to current mobile standards. Qualcomm is attempting to avoid misrepresenting patents by claiming them against infringing claims against Apple and its contractors.

Apple in its own filing opposing the request, saying Qualcomm is attempting to deflect allegations of double-dipping. Specifically, Apple argues that Qualcomm should not be able to ask for a license if it is a technology that is built into its baseband chips sold to smartphone makers.

In addition to the California court action, Qualcomm lodged a complaint with the U.S. International Trade Commission that seeks to halt the import of iPhones powered by Intel modems.

For its part, Qualcomm on multiple opportunities has the legal battle to favor IP pricing, and it is possible to fight it in a settlement.

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