Apple vs. Qualcomm


'Apple vs. Qualcomm' Articles

Qualcomm Got $4.5 Billion From Apple Settlement According to Earnings Release

Qualcomm today announced its quarterly earnings results and shared details on the amount of revenue that it will be receiving in the coming quarter as part of its recent settlement with Apple. As pointed out by Axios, Qualcomm will record $4.5 to $4.7 billion in revenue from the Apple settlement, which includes a "cash payment from Apple and the release of related liabilities." Apple and Qualcomm announced a settlement in mid-April, dropping all lawsuits and litigation against one another. Apple at the time said the settlement included a payment from Apple to Qualcomm, but both companies declined to provide specific details on just how much Apple paid out in backdated royalties. An analyst estimate put the number at around $5 billion to $6 billion, but it appears Apple didn't shell out quite that much. Apple's deal with Qualcomm also includes a direct six year licensing agreement and a multiyear chipset supply agreement, which will see Qualcomm supplying modem chips to Apple for future devices. Apple appears to have had no alternative but to settle with Qualcomm as it needed 5G modem chips for its 2020 iPhone lineup. Apple originally planned to use Intel chips, but rumors suggested Intel wasn't meeting development goals, leading to tension between Apple and Intel. Just hours after Apple and Qualcomm announced a settlement deal, Intel said that it was exiting the 5G smartphone modem business and would not be making 5G smartphone chips at all, a decision the company later said was based on Apple and Qualcomm's settlement. Yesterday, Apple CEO Tim Cook

Apple CEO Tim Cook: We Feel Good About Resolution With Qualcomm

During today's earnings call covering the second fiscal quarter of 2019 (first calendar quarter), Apple CEO Tim Cook was asked about Apple's settlement with Qualcomm. While Cook declined to provide color on how this will affect Apple's development plans in the future, he did say that Apple is satisfied with the resolution. We're glad to put the litigation behind us and all the litigation around the world has been dismissed and settled. We're very happy to have a multi-year supply agreement and we're happy that we have a direct license arrangement with Qualcomm that was important for both companies. We feel good about the resolution.Apple and Qualcomm reached a settlement in mid-April and agreed to drop all litigation in multiple countries around the world. Apple made a one-time payment to Qualcomm and inked a six-year licensing agreement to use Qualcomm's patented technologies. The settlement also included a chipset supply agreement, and Qualcomm is expected to provide the 5G chips that Apple will need to introduce 5G connectivity in its 2020 iPhones. While rumors have suggested Apple is going to add 5G in 2020, Apple itself has not confirmed those plans and Cook did not provide details on Apple's 5G timeline when asked. He did, however, say that Apple aims to get new technologies into products as soon as it can.We look at a lot of things on the different technologies and try to look at and select the right time that things come together and get those into products as soon as we can.After Apple and Qualcomm announced their settlement agreement, Intel said that

Apple Paid an Estimated $5-$6 Billion to Settle Qualcomm Dispute, Plus $8-$9 Per iPhone in Royalty Fees

Apple likely paid somewhere around $5 to $6 billion to settle its ongoing legal battle with Qualcomm, according to estimates shared today by UBS analyst Timothy Arcuri (via CNBC). The $5 to $6 billion payment would have been for royalty fees that Apple had stopped paying over the course of its two year legal fight with Qualcomm. Qualcomm may also be receiving between $8 and $9 per iPhone from Apple in ongoing patent royalties, a figure calculated based on guidance numbers that Qualcomm provided following the settlement. Qualcomm said that it expects its earnings per share to increase by $2. Apple previously paid $7.50 in royalties, so at $8 to $9 per iPhone, Apple would be shelling out more cash than it did before. Apple appears to have had no alternative but to settle with Qualcomm, as it had no other way to source 5G chips for its 2020 iPhone lineup. Apple initially planned to use Intel chips, but rumors suggested Intel wasn't meeting development goals, leading to tension between Apple and Intel. Just hours after Apple and Qualcomm announced a settlement deal, Intel said that it was exiting the 5G smartphone modem business and would not be making 5G smartphone chips at all. It's not entirely clear if Apple settled with Qualcomm because it knew of Intel's plan to abandon 5G chip development or if Intel made the decision after learning of Apple's settlement plans, but either way, it leaves Apple with no choice but to re-adopt Qualcomm chips for future iPhones. Smartphone makers like Samsung will have 5G smartphones available starting this year, so

Qualcomm CEO Steve Mollenkopf Shares Thoughts on Apple Deal but Declines to Give Specific Details

Following yesterday's surprise announcement of a settlement between Qualcomm and Apple, Qualcomm CEO Steve Mollenkopf sat down with CNBC to share a few more details about the new agreement between the two companies. According to Mollenkopf, after "a lot of talking" both between teams and with Apple CEO Tim Cook, Apple and Qualcomm came to an agreement that "both companies like." Qualcomm and Apple are now focusing on getting new products out, such as the 5G iPhone coming in 2020 that Qualcomm will supply chips for. And really, if you look at the focus of that energy now, it's very much on, 'Let's get these products out.' You know, it really clears the way for, I think, a much more natural relationship between the two companies. One that we certainly enjoy working on products together. And that's what we're doing now.Apple and Qualcomm have established a "very broad deal" across all of Qualcomm's technologies, which Mollenkopf says is the first direct license that Qualcomm has had with Apple rather than contract manufacturers. Each side "found something that was useful" in the deal, and according to Mollenkopf, Apple and Qualcomm "want to work together on products," as evidenced by the multiyear product deal the two signed as part of the settlement. Part of the agreement between the two companies included a payment from Apple to Qualcomm, but Mollenkopf declined to provide further details on the size of the payment. He also refused to reveal how much Apple is paying Qualcomm per phone. On the topic of 5G chips for future iPhones, Mollenkopf said that Qualcomm

Apple Plans to Use Qualcomm Chips for 5G iPhones in 2020 Following Settlement

Apple is planning to purchase 5G modem chips from Qualcomm for use in its 2020 iPhones, according to a source with knowledge of today's settlement plans that spoke to Nikkei. Apple won't be able to use Qualcomm chips in its 2019 iPhone lineup, but has already been testing Qualcomm's 5G chips for 2020 devices. "It is too late for Apple to use Qualcomm's chips this year, but for 2020 it will purchase modem chips, including 5G modem chips, from the chipmaker for iPhones after finalizing the deal," a source with direct knowledge of the settlement plan told Nikkei. As it moved toward a settlement, Apple started testing Qualcomm's 5G modem chips and asked some of its suppliers to test the chipmaker's product, Nikkei has learned.Qualcomm and Apple have reportedly been negotiating for weeks to reach the settlement that was announced today. In a press release, Apple said that the two companies had agreed to drop all litigation with a six-year licensing agreement for Qualcomm's technology. Apple also said that the deal included a "multiyear chipset supply agreement." Apple initially planned to use Intel's 5G chips in its 2020 iPhones, but recent reports have suggested that Intel has been missing developmental deadlines, causing Apple to lose confidence in Intel. For a September 2020 launch, Apple needs to have sample 5G chips in hand in mid 2019, with finished chips available in early 2020, and rumors indicated Intel might not make that goal. Apple in 2018 used Intel's chips exclusively for its iPhone lineup due to the bitter legal battle with Qualcomm, but may

Apple and Qualcomm Reach Settlement, Agree to Drop All Litigation

Apple and Qualcomm just kicked off a legal battle over unpaid royalty rebates in a San Diego court, but the case will be cut short as the two companies have reached a settlement. Apple announced the news in a press release this afternoon. Apple says the settlement includes a payment from Apple to Qualcomm and a six-year licensing agreement for Qualcomm's technologies. Qualcomm and Apple today announced an agreement to dismiss all litigation between the two companies worldwide. The settlement includes a payment from Apple to Qualcomm. The companies also have reached a six-year license agreement, effective as of April 1, 2019, including a two-year option to extend, and a multiyear chipset supply agreement.The settlement ends all ongoing litigation between the two companies, including with Apple's contract manufacturers. All companies involved have reached a global patent license agreement and a chipset supply agreement, suggesting Apple may be planning to once again use Qualcomm chips in its devices going forward. The legal battle dates back to 2017, when Apple sued Qualcomm for over $1 billion in unpaid royalty rebates, accusing the San Diego chip company of anticompetitive patent licensing practices. Apple in its lawsuit claimed that Qualcomm had "unfairly insisted" on collecting royalties for "technologies they have nothing to do with," while Qualcomm said that its technology is "at the heart of every iPhone. The original lawsuit spawned a bitter legal battle between the two companies, which led to patent disputes and import bans in multiple countries, all

Apple vs. Qualcomm Jury Includes Retired MLB Pitcher and Woman Who's Never Owned a Smartphone

Apple's high-profile trial against chipmaker Qualcomm kicked off in San Diego federal court on Monday with jury selection. Among the nine jurors selected are a former Major League Baseball pitcher for the Kansas City Royals, a woman who has never owned a smartphone, a retired clinical psychologist, a pilot, an accountant, a retired nurse, and an environmental consultant, according to reports from CNET and Bloomberg. Opening statements will be heard today. Apple has accused Qualcomm of anticompetitive business practices by way of demanding excessive patent royalties, while Qualcomm alleges that Apple manufacturers Foxconn, Pegatron, Wistron, and Compal owe it more than $7.5 billion in unpaid royalties. Apple already won a preliminary judgment ordering Qualcomm to pay nearly $1 billion in withheld rebates last month. Qualcomm has already faced scrutiny from antitrust regulators in multiple countries, including the United States, where an FTC lawyer said "evidence is overwhelming that Qualcomm engaged in exclusionary conduct, and the effects of Qualcomm's conduct, when considered together, are anticompetitive." Amidst the legal battle, Apple dropped Qualcomm as a supplier of cellular modems starting with last year's iPhone XS, ‌iPhone XS‌ Max, and iPhone XR, switching to Intel for all modems in those

Apple vs. Qualcomm Trial Begins Today

Two years after Apple sued Qualcomm over $1 billion in unpaid royalty rebates and anticompetitive patent licensing practices, the tech heavyweights are set to face off in a San Diego courtroom. The trial begins today with jury selection. Apple manufacturers Foxconn, Pegatron, Wistron, and Compal, whose complaints have been merged with Apple's, allege that they have collectively overpaid Qualcomm approximately $9 billion in royalties, a figure that could be tripled under antitrust laws to $27 billion, according to The New York Times. Apple argues that Qualcomm should also repay $3.1 billion associated with patents whose rights are exhausted, the report adds. Apple in January 2017:For many years Qualcomm has unfairly insisted on charging royalties for technologies they have nothing to do with. The more Apple innovates with unique features such as Touch ID, advanced displays, and cameras, to name just a few, the more money Qualcomm collects for no reason and the more expensive it becomes for Apple to fund these innovations.Qualcomm in turn estimates that Foxconn, Pegatron, Wistron, and Compal owe more than $7.5 billion in unpaid royalties. Qualcomm also argues that Apple should be held liable for a doubled penalty of at least $15 billion. Qualcomm in April 2017:Apple is the world's most profitable seller of cellular devices. But as a late-comer to the cellular industry, Apple contributed virtually nothing to the development of core cellular technology. Instead, Apple's products rely heavily on the cellular inventions of Qualcomm and others. Apple's iPhones and

Apple CEO Tim Cook to Testify in Apple v. Qualcomm Trial in San Diego Next Month

Apple CEO Tim Cook will be heading to San Diego next month to testify in the Apple v. Qualcomm trial that will see Apple challenging Qualcomm's patent licensing practices, reports Bloomberg. Along with Cook, Qualcomm CEO Steven Mollenkopf will testify, and other Apple witnesses could include former head of Apple hardware Bob Mansfield, Apple marketing chief Phil Schiller, and former general counsel Bruce Sewell. Cook will testify on Apple's business strategy, financial performance, and agreements with other tech companies. Executives from Foxconn and Samsung are also expected to make an appearance at the trial, as Qualcomm will be attempting to recoup royalty payments from Apple suppliers that stopped paying royalties on Qualcomm patents back in 2017. The April trial pertains to the first lawsuit that Apple filed against Qualcomm back in January 2017 over Qualcomm's failure to pay royalty rebates. Apple has accused Qualcomm of charging unfair royalties for "technologies they have nothing to do with" and using exclusionary tactics and high patent licensing fees to remain the dominant baseband chip supplier. The trial is set to kick off on April

Qualcomm Owes Apple Almost $1 Billion in Rebate Payments According to New Court Ruling

Qualcomm owes Apple close to $1 billion in rebate payments a U.S. District Judge for the Southern District of California said in a preliminary ruling today, siding with Apple in the ongoing Apple vs. Qualcomm legal battle. Qualcomm, ruled the judge, is obligated to make the rebate payments to Apple as they were part of a business agreement between the two companies. Today's ruling is unrelated to the patent trial that wrapped up this week and instead pertains to Apple's rebate lawsuit against Qualcomm. Two years ago, Apple sued Qualcomm and said that the chip company had been refusing to pay patent royalty rebates mandated by the agreement. As explained by Reuters, Apple's suppliers would pay Qualcomm royalties to use Qualcomm's patented technology in iPhones, which Apple would reimburse. Qualcomm and Apple had an agreement that said Qualcomm would pay Apple a rebate on these iPhone patent payments if Apple did not attack it in court or with regulators. Qualcomm said that it stopped making the required royalty payments to Apple because Apple broke the agreement by urging smartphone makers to complain to regulators and by making "false" statements to the Korean Fair Trade Commission, which was, at the time, investigating Qualcomm for antitrust allegations. Apple in turn said that it was providing lawful responses to Korean regulators as part of the ongoing investigation. Apple was in the right according to the preliminary ruling, and Qualcomm should have continued to make the royalty payments. In a statement to Reuters, Qualcomm commented on the judge's

Qualcomm Wants Apple to Pay $31 Million in Damages in Patent Battle

Qualcomm today told a San Diego jury that it wants Apple to pay $31 million in damages for patent infringement violations, which is allegedly equivalent to $1.40 per infringing iPhone. The new information comes from CNET, which has been covering the Qualcomm vs. Apple patent trial that's in court this week. $1.40 per iPhone and a total of $31 million in damages suggests that Qualcomm believes only 22 million iPhones are infringing on its technology. Qualcomm came up with that total with the help of economist Patrick Kennedy, who took the stand as an expert witness for Qualcomm today. Kennedy calculated the figure based on iPhones sold from July 2017 on that used chips by Intel. Apple started using a mix of chips from both Intel and Qualcomm in the iPhone 7, and later transitioned to all Intel chips due to the legal troubles with Qualcomm. Qualcomm and Apple are fighting over three patents that Qualcomm says Apple infringed on with its iPhones. As CNET describes, one of the patents covers a method for allowing a smartphone to quickly connect to the internet once turned on, while another covers graphics processing and battery life. The third patent Apple is accused of violating allows apps to download data more easily by directing traffic between the apps processor and modem. Apple just last quarter earned more than $20 billion in profit, so $31 million in damages wouldn't be a hit to the company's bottom line. If Qualcomm wins the trial, though, its claim that its technology is at the "heart of every iPhone" would be more credible. Apple and Qualcomm have

First U.S. Jury Trial Begins Today in Apple-Qualcomm Legal Battle

In July 2017, Qualcomm filed suit against Apple in San Diego federal court, accusing the iPhone maker of infringing on six U.S. patents related to graphics processing architecture, power consumption, and envelope tracking technologies. Nearly two years later, the case is finally headed to trial. The trial begins today with jury selection, with proceedings expected to take up to two weeks. It will be the first time a U.S. jury is involved in the major legal battle between the two companies, according to Bloomberg. The legal battle between Apple and Qualcomm spans multiple countries. The dispute began in January 2017 when Apple sued Qualcomm for an alleged $1 billion in unpaid royalty rebates, just days after an FTC complaint alleged that Qualcomm engaged in anticompetitive patent licensing practices. Qualcomm has countersued, alleging that its "innovations are at the heart of every iPhone" and "enable the most important uses and features of those devices," adding that it "simply is untrue that Qualcomm is seeking to collect royalties for Apple innovations that have nothing to do with Qualcomm's technology." Last week, analysts at investment bank Barclays said that Qualcomm is seemingly "running out" of time to reach a settlement with Apple if it wants to win 5G modems orders for the first 5G-enabled iPhones, expected in 2020.

Qualcomm 'Running Out' of Time to Win 5G Modem Orders in 2020 iPhones Amid Legal Battle With Apple

Qualcomm may be running out of time if it wants to supply Apple with 5G modems for its 2020 iPhones as some rumors suggest. In a research note today, analysts at investment bank Barclays said that while they originally thought Qualcomm had an opportunity to supply the 5G modems to Apple, they now believe that time "seems to be running out" unless the two companies can settle their bitter legal battle in the next few weeks. Back in November, it was reported that Apple will tap Intel as its 5G modem supplier instead, but Barclays analysts believe that the modem design for 2020 iPhones "needs to be set now," and that the expected late 2019 availability of Intel's first consumer 5G modem "does not work with Apple's timeline." Apple recently testified that it held conversations with Samsung and MediaTek as potential alternative suppliers, but it's unclear if those companies would be able to meet Apple's production, performance, and cost demands. Apple is also reportedly working on its own cellular modems, but research and development appears to be in the early stages. Last week, Intel confirmed that it expects the first consumer products embedded with its 5G chips to be released in 2020, the same year Apple is rumored to release its first 5G-enabled iPhone, enabling faster data

Qualcomm Says Its Innovations Are At the Heart of Every iPhone as Battle With Apple Intensifies

Apple this week expanded its lawsuit against Qualcomm, accusing the wireless chipmaker of "double-dipping" by allegedly refusing to sell chips to manufacturers unless they also pay separate royalties and enter licensing agreements at unreasonable rates, according to court documents filed electronically. Qualcomm has since responded to the amended complaint, claiming that Apple is "trying to distract" from the fact that it has made alleged "misleading statements" about the comparative performance of its Snapdragon X12 modem, used in select iPhone 7 models to enable Wi-Fi and cellular connectivity. Apple dual sources wireless chips from Qualcomm and Intel for the iPhone 7 and iPhone 7 Plus. Qualcomm's Snapdragon X12 modem is used in CDMA models, such as those sold by Verizon and Sprint, while Intel's XMM7360 modem is used in GSM models, such as those sold by AT&T and T-Mobile. New York-based Cellular Insights last year found Qualcomm's modem to significantly outperform Intel's modem in the iPhone 7 Plus, based on simulated testing of LTE performance at different distances from a cellular tower. Apple, however, publicly stated there is "no discernible difference" in performance between the Qualcomm and Intel modems in any of the models. Apple also threatened Qualcomm not to disclose the truth, according to Don Rosenberg, executive vice president and general counsel of Qualcomm. Rosenberg said Apple's bigger misconception is that Qualcomm's innovations are limited to technology implemented in the cellular modem, when in fact its patented inventions are

Apple Says Qualcomm Has Overcharged Billions of Dollars By 'Double-Dipping' on iPhone's Innovation

Apple has expanded its lawsuit against Qualcomm, accusing the wireless chipmaker of "double-dipping" by way of unfair patent licensing agreements, according to an amended complaint filed with a United States federal court in San Diego today. The complaint broadens the claims Apple made in its original lawsuit against Qualcomm in January, when it sued the chipmaker for $1 billion in alleged unpaid royalty rebates. Apple also accused its longtime supplier of the iPhone's wireless chip of engaging in anticompetitive licensing practices. Since the original iPhone, Qualcomm has supplied Apple with modems that enable the smartphone to, for example, connect to a Wi-Fi or LTE network. But as the iPhone has gained more features, Apple argues that Qualcomm has been unfairly "levying its own tax" on those innovations through "exorbitant royalties." Apple said Qualcomm wrongly bases its royalties on a percentage of the entire iPhone's value, despite supplying just a single component of the device.As Apple innovates, Qualcomm demands more. Qualcomm had nothing to do with creating the revolutionary Touch ID, the world’s most popular camera, or the Retina display Apple’s customers love, yet Qualcomm wants to be paid as if these (and future) breakthroughs belong to it. Qualcomm insists in this Court that it should be entitled to rely on the same business model it applied over a decade ago to the flip phone but while that model may have been defensible when a phone was just a phone, today it amounts to a scheme of extortion that allows Qualcomm unfairly to maintain and

Qualcomm Files New Lawsuit in Ongoing Apple Feud, Now Targeting Four Major iPhone Suppliers

In the ongoing feud between Apple and Qualcomm, the latter company today has brought four of Apple's main iPhone and iPad suppliers into the legal battle by filing a breach of contract complaint against Foxconn, Pegatron, Wistron, and Compal. Qualcomm has sued the four manufacturers for "breaching their license agreements" by failing to pay royalties on the use of Qualcomm's technology in the assembly of Apple's devices. For its part in the production of iPhones, Qualcomm supplies the LTE modem in Apple's smartphone. The cessation of royalty payments by the iPhone manufacturers isn't too surprising, as it follows a report from April in which Apple itself stopped paying its suppliers for royalties related to Qualcomm. According to Qualcomm, "the manufacturers say they must follow Apple’s instructions not to pay," so in retaliation Qualcomm is suing the four companies, asking them to comply with long-standing contractual obligations as well as pay any withheld royalties. Qualcomm said that Foxconn, Pegatron, Wistron, and Compal are still paying royalties for Qualcomm technology related to non-Apple products "under the very same agreements that apply to the Apple products." Qualcomm further mentioned that its license agreements with the manufacturers began before Apple even sold its first iPhone, meaning that "Apple is not a party to the agreements" and shouldn't be able to interfere so heavily in its business. “It is unfortunate that we must take this action against these long-time licensees to enforce our agreements, but we cannot allow these manufacturers

Qualcomm Countersues Apple, Says iPhone Wouldn't Be Possible Without Its Technologies

Qualcomm today announced it has countersued Apple in the U.S. District Court for the Southern District of California, nearly three months after the iPhone maker sued the chipmaker for $1 billion in alleged unpaid royalty rebates. Apple also accused Qualcomm of engaging in anticompetitive licensing practices. Qualcomm, which earlier called Apple's lawsuit "baseless," officially denied the majority of Apple's allegations, and accused the Cupertino-based 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. The chipmaker also accused Apple of breaching its licensing agreements, making false statements, and encouraging regulatory attacks on its business in multiple countries. Qualcomm added that Apple has deliberately "chose not to utilize the full performance" of its LTE modem in its iPhone 7 and iPhone 7 Plus. Apple uses Intel's XMM7360 and Qualcomm's Snapdragon X12 modems for GSM and CDMA models of the iPhone 7 respectively. Independent testing last year found Qualcomm's LTE chip to significantly outperform Intel's LTE chip in the iPhone 7, but it could theoretically be even faster. Apple, however, said there is "no discernible difference" in performance between the Qualcomm and Intel modems in any of the models. Qualcomm said Apple's statement misrepresented the performance disparity between iPhones using its modems and those using Intel-supplied modems. Apple then allegedly threatened Qualcomm about making any public comparisons about the

Apple Sues Qualcomm for $1 Billion in Unpaid Royalty Rebates [Updated]

Following an FTC complaint alleging Qualcomm engaged in anticompetitive patent licensing practices, Apple has filed a lawsuit against Qualcomm claiming the company has charged unfair royalties for "technologies they have nothing to do with." According to a statement Apple shared with several news sites, Qualcomm "reinforces its dominance" through exclusionary tactics and high patent licensing fees. Apple's full statement is below:"For many years Qualcomm has unfairly insisted on charging royalties for technologies they have nothing to do with. The more Apple innovates with unique features such as TouchID, advanced displays, and cameras, to name just a few, the more money Qualcomm collects for no reason and the more expensive it becomes for Apple to fund these innovations. Qualcomm built its business on older, legacy, standards but reinforces its dominance through exclusionary tactics and excessive royalties. Despite being just one of over a dozen companies who contributed to basic cellular standards, Qualcomm insists on charging Apple at least five times more in payments than all the other cellular patent licensors we have agreements with combined. To protect this business scheme Qualcomm has taken increasingly radical steps, most recently withholding nearly $1B in payments from Apple as retaliation for responding truthfully to law enforcement agencies investigating them. Apple believes deeply in innovation and we have always been willing to pay fair and reasonable rates for patents we use. We are extremely disappointed in the way Qualcomm is conducting its

FTC Targeting Qualcomm for Forcing Apple to Use its Modems [Updated]

The United States Federal Trade Commission today filed a complaint against Qualcomm, accusing the company of violating the FTC Act by using anticompetitive tactics to remain the dominant supplier of baseband processors (aka LTE chips) for smartphones. According to the FTC, Qualcomm uses its position and its portfolio of patents to impose "onerous and anticompetitive supply and licensing terms on cell phone manufacturers," negatively impacting its competitors. The complaint specifically addresses a deal with Apple in which Qualcomm required Apple to exclusively use its modems from 2011 to 2016 in exchange for lower patent royalties.Qualcomm precluded Apple from sourcing baseband processors from Qualcomm's competitors from 2011 to 2016. Qualcomm recognized that any competitor that won Apple's business would become stronger, and used exclusivity to prevent Apple from working with and improving the effectiveness of Qualcomm's competitors.Up until 2016, Apple only used Qualcomm modems in its line of iPhones, deviating from the norm with the iPhone 7. Both Intel and Qualcomm modems were adopted for the iPhone 7 and the iPhone 7 Plus, leading to some compatibility and performance discrepancies. Qualcomm is also accused of refusing to license its standard-essential patents to competing suppliers and implementing a "no license, no chips" tax policy where it supplies its baseband processors only when manufacturers agree to Qualcomm's preferred licensing terms, causing smartphone makers to pay higher royalties to Qualcomm when a competitor's modem chips are used. The