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By Mikey Campbell
Friday, October 26, 2018 at 7:40 pm Eastern Time (10:40 pm ET)
Apple now has $ 7 billion late in patent royalty payments to Qualcomm after ordering contract manufacturers to withhold payment because of chip maker's involvement in unfair licensing practices, according to a testimony presented Friday in court.
Apple's iPhone X used both Qualcomm and Intel modems.
Qualcomm commented on unpaid Apple royalties at a California court hearing, reports Reuters.
Apple does not directly license Qualcomm's patents, although the technology giant's money ends up in the chip maker's coffers through refunds to partner manufacturers who pay royalties.
The figure of $ 7 billion and a number of other important details surrounding the sprawling legal battle are in dispute. Apple claims that Qualcomm's royalty rates are unfair and amounts to price abuse and extortion.
Last year, Apple filed a lawsuit against Qualcomm, claiming that the chip maker had participated in monopolistic practices and other harmful business strategies, including withholding rebates from a company. $ 1 billion in compensation for participating in a South Korean antitrust investigation. The original case eventually resulted in a hundred separate lawsuits and counter-suits around the world.
In dealing with royalties, Apple alleges that Qualcomm infringes FRAND's (fair, reasonable and non-discriminatory) patent obligations to charge customers, including suppliers, exorbitant rates on essential patents. The chip maker further limits sales to buyers who agree to license its EPS, a practice that Apple qualifies as "double deduction".
When Apple stopped royalty payments, partner partners using Qualcomm IP did the same.
During today's proceedings, Qualcomm also attempted to file a motion to challenge the challenges to the validity of Apple's patents, according to one report. Bloomberg. The company filed the petition earlier this month and filed its case in court on Friday.
At issue, nine Qualcomm patents "handpicked" by Apple to illustrate the weak points of the chip maker's IP mobile technology portfolio. Apple is trying to invalidate the inventions that, according to Qualcomm, are essential to current mobile standards. Qualcomm is attempting to avoid scrutiny of patents by stating that it does not intend to use them in connection with infringement claims against Apple and its counterparts. subcontractors.
In its own case, Apple opposed the claim, saying that Qualcomm was attempting to deflect the allegations of double deduction. Apple claims in particular that Qualcomm should not be able to require a license for a patented technology if that same technology is integrated with its baseband chips sold to smartphone manufacturers.
In addition to the lawsuit in California, Qualcomm has filed a complaint with the US International Trade Commission that seeks to stop the importation of iPhones equipped with Intel modems.
Qualcomm, for its part, has repeatedly stated that the legal battle boiled down to favorable pricing of intellectual property and that it hoped that the fight would lead to a settlement.
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