What happens if Apple win from Qualcomm (and Vice versa)

On Monday Apple started its trial by jury against chip supplier Qualcomm in San Diego, claiming that the defendant was engaged in the illegal practice of licensing patents and demanding $ 27 billion of damage. But Qualcomm also has a claim to the Apple – however, already at $ 15 billion, for illegal use of patents. But even if you lose, Apple wins. Why?

The lawsuit, filed by Apple in the beginning of 2017 (!) year in Federal court, associated with modem chips that connect devices such as the iPhone or the Apple Watch with wireless data networks. Qualcomm has spent the last two years, participating in minor legal skirmishes against Apple, seeking — and in some cases getting — prohibitions on the sale of the iPhone for infringing its patents.

The trial will be held in the “home area” Qualcomm in San Diego, where for decades the team of the national football League the city played at Qualcomm stadium, and in almost every business district was placed the logo of the company that produces mobile chips.

For Apple victory in the court proceeding would mean not only getting money from Qualcomm, but also the right not to pay royalties to the manufacturer. In case of loss, the Corporation will only lose your money. But the court’s decision is not in favor of Qualcomm will put an end to her scheme, a simultaneous sale of chips and licensing more than 130,000 patents. Well, 25 billion will lose. In other words, the risks of a manufacturer of processors much higher, and the chance to win yet more from Apple.

Why? Qualcomm requires that device manufacturers have signed an authorization for the use of its patents before they will deliver the chip. According to the company, the guarantor that it does not deal with manufacturers that violate its patents. But Apple and other device manufacturers around the world called the policy “no permit — no chips” a form of “double dipping”, that is charging for the same intellectual property two times. And a few like it.

Apple and its allies need to stop this practice and return about 9 billion dollars — the sum that may be trebled if the court decides in favor of Apple against antitrust charges.

Qualcomm claims that the company has successfully worked with contract factories for many years before Apple introduced its iPhone. And Apple has done everything possible to force these factories to break their long-standing contracts with Qualcomm, depriving the manufacturer at least $ 7 billion of royalties, which he was to receive, according to the chip supplier.

The silicon vendor also claims that its licensing practices have been consistent for decades and was criticized only when Apple is known in the electronics industry, joined her in the dispute. Win Qualcomm will provide the status of the main supplier of chips for 5G. But will it win?

Subscribe to our channel at “Yandex.Zen”. They know, what are the odds of Qualcomm in this fight.

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