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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RE[2]: Qualcomm is in the wrong
by jonsmirl on Wed 4th Oct 2017 15:39 UTC in reply to "RE: Qualcomm is in the wrong"
Member since:

The egregious behavior is using standards to extract massive patent royalties far, far, far in excess of development costs. Qualcomm has put in about $100M of R&D and yet extracts $6 billion a year in royalties. This is similar to the MP3 patents, $10M in R&D resulting in close to $20B in payments.

Personally, I'd like to see the proceeds from spectrum auctions used to buy out the patents necessary to implement the devices used in that spectrum. That would amply compensate the patent holders without leading to excessive compensation.

This is going to repeat again with 5G. It is not like 5G is a risky proposition. Everyone already knows what technologies it will employ. But there will be a new round of patents granting 20 years worth of monopoly profits.

Reply Parent Score: 0

tylerdurden Member since:

Qualcomm has put in about $100M of R&D and yet extracts $6 billion a year in royalties

Do you have a source for that?

Reply Parent Score: 3

leech Member since:

Sounds like the Pharmaceutical companies.

Reply Parent Score: 2

ThomasFuhringer Member since:

The problem is the patent and IP legal framework. Protection of IP should expire after three to five years at the most. This is enough of an incentive for a company to invest into R&D. If the business case does not foresee a profit in that time period, they will not invest anyway in most of the cases.
Nobody needs to collect money for a cartoon they wrote 50 years ago.

Reply Parent Score: 3

Kochise Member since:

Should I remind you how Disney lobbied to extend copyright for its characters that should have been in public domain long ago ?

Reply Parent Score: 3