Apple is 'Not in Talks' to Settle Legal Dispute With Qualcomm and is 'Gearing Up For Trial'

Apple and Qualcomm are not in talks "at any level" to settle a wide-ranging legal dispute spanning multiple countries, according to Reuters.


The report cites an unnamed source on Apple's side who said "there is absolutely no meaningful discussion taking place between us and Qualcomm, and there is no settlement in sight," with Apple "gearing up for trial."

The case is set to go to trial early next year, should the companies fail to reach a resolution, according to the report.

Qualcomm CEO Steve Mollenkopf had told investors on the company's quarterly earnings call in July that the two companies were in talks to resolve the litigation. "We hope that through the combination of either those paths, we could get to a resolution, and we're confident that we will," he said at the time.

The saga began when Apple sued Qualcomm in January 2017 for allegedly withholding nearly $1 billion in royalty rebates as retaliation for Apple "responding truthfully to law enforcement agencies investigating them," referring to the FTC's investigation into Qualcomm's anticompetitive business practices.

Qualcomm countersued Apple in April 2017, accusing the company of failing to engage in good faith negotiations for a license to its 3G and 4G standard essential patents on fair, reasonable, and non-discriminatory terms. Qualcomm also accused Apple of encouraging regulatory attacks on its business in multiple countries.

Qualcomm's countersuit said Apple "could not have built the incredible iPhone franchise" without relying upon the chipmaker's "fundamental cellular technologies." Qualcomm went as far as alleging that Apple "contributed virtually nothing to the development of core cellular technology."

Qualcomm also accused Apple of making "misleading statements" about the performance of Qualcomm and Intel modems in iPhones. In testing, iPhone 7 models with Qualcomm's modem achieved faster wireless speeds than those with Intel's modem, but Apple said there was "no discernible difference" between the two.

Apple broadened its lawsuit against Qualcomm in June 2017, accusing the chipmaker of "double-dipping" with unfair patent licensing agreements. Apple said Qualcomm charged it royalties based on a percentage of the entire iPhone's value, despite supplying just a single component of the device - the wireless modem.

The legal dispute encompasses several other claims, including Qualcomm's allegation that Apple shared Qualcomm's trade secrets with Intel to help improve its LTE modems, allowing Apple to stop using Qualcomm's modems.

Qualcomm was the exclusive supplier of wireless modems in iPhones until the iPhone 7 and iPhone 7 Plus, when Apple added Intel as a secondary supplier. Likely due to this legal dispute, Intel became the exclusive supplier of wireless modems starting with the iPhone XS, iPhone XS Max, and iPhone XR.

Apple is reportedly $7 billion behind in royalties owed to Qualcomm as it withholds payments as a result of the legal dispute.

Top Rated Comments

(View all)
Avatar
26 months ago

No, I want to know why YOU think they can just steamroll through the tech industry and buy everyone out.

1) they have the money to
2) the USA a free country where free commerce is allowed (you live in china or something?)
3) everything is for sale if the price is right - that's just the facts of life buddy
4) its not "steamrolling" if its a mutual agreement
5) I want to know why you are so hostile to the idea of apple buying other companies???
Score: 21 Votes (Like | Disagree)
Avatar
26 months ago

Because Apple already is a monopoly, it doesn't need to be even more so.

They are a monopoly of their own products just like Microsoft is a monopoly of Surface products, Google has a monopoly on Pixel laptops and Samsung has a monopoly on Galaxy phones. That is not a monopoly that harms consumers since healthy competition exists outside of iPhone and Mac products.
Score: 12 Votes (Like | Disagree)
Avatar
26 months ago

Apple is not entitled to just buy any company you think it should.

Why do you think this way?

Apple is absolutely entitled to buy any company they want if the company is willing to sell.
Score: 11 Votes (Like | Disagree)
Avatar
26 months ago
And then there's this:

U.S. court rules Qualcomm must license technology to rivals ('https://www.reuters.com/article/us-qualcomm-ftc/u-s-court-rules-qualcomm-must-license-technology-to-rivals-idUSKCN1NB2KP')


Because Apple already is a monopoly, it doesn't need to be even more so.

Since when?:confused:
Score: 11 Votes (Like | Disagree)
Avatar
26 months ago

Because Apple already is a monopoly, it doesn't need to be even more so.

If your understanding of monopoly is "get $200 when you pass Go", I can see how you'd come to that conclusion.
Score: 9 Votes (Like | Disagree)
Avatar
26 months ago

Because Apple already is a monopoly, it doesn't need to be even more so.

Apple is far from a monopoly, there are dozens if not hundreds of pc and phone manufacturers out there for you to choose from - you could be using a windows PC and an android phone. But I see in your signature you are using a "Hackintosh"... you know why its called "Hackintosh"? cause when you run that, you are allowing hackers easy access into your icloud account...

I guess you don't realize that when you buy apple hardware with their software, what you are paying for is the most secure, hacker resistant ecosystem on the planet. They even deny governments' ability to access your devices. But hey, you may not care about those things so you should probably switch to windows and android.
Score: 7 Votes (Like | Disagree)

Top Stories

Apple References Unreleased 2020 16-Inch MacBook Pro in Boot Camp Update

Monday October 26, 2020 8:42 am PDT by
Last week, Apple released an update for Boot Camp, its utility for running Windows on a Mac. While this update would typically be unremarkable, several of our readers noticed that the release notes reference an unreleased 2020 model of the 16-inch MacBook Pro. While this could easily be a mistake, the 16-inch MacBook Pro is nearly a year old, so it is certainly a worthy candidate for a...

MagSafe Charger Only Charges at Full 15W Speeds With Apple's 20W Power Adapter [Updated]

Monday October 26, 2020 3:38 pm PDT by
Alongside the iPhone 12 and 12 Pro models, Apple introduced a new MagSafe charger that attaches to the magnetic ring in the back of the devices, providing up to 15W of charging power, which is double the speed of the 7.5W Qi-based wireless charging maximum. Apple does not provide a power adapter with the $39 MagSafe charger, requiring users to supply their own USB-C compatible option. Apple...

Google Reportedly Pays Apple $8-12 Billion Per Year to be Default iOS Search Engine

Sunday October 25, 2020 2:59 pm PDT by
The United States Justice Department is targeting a lucrative deal between Apple and Google as part of one of the U.S. government's largest antitrust cases, reports The New York Times. On Tuesday, the Justice Department filed an antitrust lawsuit against Google, claiming the Mountain View-based company used anticompetitive and exclusionary practices in the search and advertising markets to ...

After Mocking Apple, Samsung May Remove Power Adapter From Galaxy S21 Box

Tuesday October 27, 2020 4:29 pm PDT by
Samsung's Galaxy S21, coming in 2021, may not include a power adapter or headphones in the box, according to reports from Korean media sites highlighted by SamMobile. Rumors earlier this year also said that Samsung was considering removing these accessories from future smartphone models, but that didn't stop Samsung from mocking Apple for selling the iPhone 12 models without a power adapter...

Report: Apple Silicon iMac Featuring Desktop Class 'A14T' Chip Coming First Half of 2021

Tuesday October 27, 2020 4:14 am PDT by
The first iMac powered by Apple Silicon is set to arrive in the first half of next year and will feature a desktop class "A14T" chip, according to Chinese-language newspaper The China Times. Codenamed "Mt. Jade," Apple's first custom-made desktop processor will be twinned with its first self-developed GPU, codenamed "Lifuka," both of which are being produced using TSMC's 5-nanometer process, ...

iPhone 12 Six-Foot Drop Test Results: Ceramic Shield More Durable But Not Damage Proof

Monday October 26, 2020 5:00 am PDT by
Apple's new iPhone 12 and iPhone 12 Pro feature a new Ceramic Shield screen that Apple says offers 4x better drop performance. To test that claim, Allstate Protection Plans put the two models through a range of breakability tests and recorded the results. In a face down sidewalk drop test at six feet, the iPhone 12 suffered small cracks and scuffed corners and edges, leaving sharp grooves in ...

Bloomberg: New AirPods and AirPods Pro Coming in 2021, AirPods Studio Delayed, Third HomePod Model Also Possible

Monday October 26, 2020 3:34 am PDT by
Apple plans to update its AirPods line next year with two new models including third-generation AirPods and second-generation AirPods Pro, according to a new report from Bloomberg. The Cupertino, California-based technology giant is working on two new models: third-generation entry-level AirPods and the second version of the AirPods Pro earbuds, according to people familiar with the plans. ...

2020 iPad Air vs. iPad Pro: Hands-On Comparison

Tuesday October 27, 2020 3:03 pm PDT by
Apple announced the new 2020 fourth-generation iPad Air in September, but the new tablets just started shipping out to customers last Friday. We picked one up and thought we'd do a hands-on comparison with the iPad Pro, which was last updated in March, because both tablets are about as powerful and share many similarities. Subscribe to the MacRumors YouTube channel for more videos. Design and ...

iPhone 12 Ceramic Shield Still 'Scratches at Level 6 With Deeper Grooves at Level 7' in Mohs Hardness Test

Wednesday October 28, 2020 7:10 am PDT by
iPhone 12 and iPhone 12 Pro models feature a new Ceramic Shield front cover that is "tougher than any smartphone glass," according to Apple, but the displays on the devices still have similar scratch resistance as previous iPhones based on a new test. Zack Nelson today shared his much-anticipated iPhone 12 Pro durability test on his YouTube channel JerryRigEverything, and based on the Mohs...

Apple Files Mystery 'Personal Computer' With Placeholder 'B2002' Name in Bluetooth Product Database

Tuesday October 27, 2020 12:36 pm PDT by
Last week, a listing appeared in the Bluetooth product database for an Apple product with a placeholder name "B2002" and a model number of "TBD." MacRumors was alerted to the listing by health and fitness tech website MyHealthyApple. The product is filed under the "personal computer" category, which Apple has used for previous Mac and iPad listings in the database, so it is hard to pinpoint...