Linked by Thom Holwerda on Wed 4th Oct 2017 10:56 UTC

Within a matter of weeks, Qualcomm, which had been valued at more than $100 billion in December 2016, had lost a quarter of its market capitalization, an outcome that Qualcomm executives say was Apple's intent all along. "Apple's game plan is to squeeze people until they finally say, 'OK, the pressure's too hard. I'll just take a deal,'" said Derek Aberle, then Qualcomm's president and the company's chief negotiator, in an interview in July. Apple, on the other hand, presents the dispute as a matter of fairness. "It's not that we can't pay," Sewell says. "It's that we shouldn't have to pay."

The case, which could go to trial in a San Diego federal court as early as next year, could have a profound impact on the mobile phone business. A Qualcomm win would hamper Appleā€™s efforts to cut costs and preserve margins that have allowed it to capture most of the profits generated by smartphone makers worldwide. If Apple wins and succeeds in ending the Qualcomm tax, that could marginalize one of the most powerful American technology companies and upend the balance of power in the semiconductor industry.

I have zero sympathy for either of these two companies. I literally cannot find a single fournication to give.

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Qualcomm is in the wrong
by jonsmirl on Wed 4th Oct 2017 12:22 UTC
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As much as I hate both companies, Qualcomm is in the wrong on this. Qualcomm is manipulating the patent system to collect unreasonable amounts of royalties. While this may be an $18 part, Qualcomm also demands an estimated 6% of the retail price of the phone as an IP royalty. So an iPhone X would have to pay around $60 in royalty plus $18 for the part - $78 for the cell modem.

Qualcomm is doing this by creating patent bundles that include FRAND patents. The non-FRAND patents carry the 6% royalty, but you can't get a license unless you take the whole bundle. Of course, Apple/Samsung have no use for many of the patent licenses included in that bundle.

The whole cell phone world is ridiculously over patented. 250,000 patents, 1/6 of all active patents, are on the cell phone and related technologies. And every one of those 250,000 patent holders is after their pound of flesh.

Edited 2017-10-04 12:23 UTC

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