After settlement with Apple, Qualcomm still faces other potential legal fallout

“Apple and mobile chip maker Qualcomm have settled a bitter financial dispute centered on some of the technology that enables iPhones to connect to the internet,” Michael Liedtke reports for The Associated Press. “The surprise truce announced Tuesday came just as the former allies turned antagonists were facing off in a federal court trial that was supposed to unfold over the next month in San Diego. The resolution abruptly ended that trial, which also involved Apple’s key iPhone suppliers.”
“The deal requires Apple to pay Qualcomm an undisclosed amount. It also includes a six-year licensing agreement that likely involves recurring payments to the mobile chip maker,” Liedtke reports. “Neither Apple nor Qualcomm would comment beyond a brief statement announcing they had resolved their differences. Details about how much Apple and its iPhone suppliers will be paying Qualcomm could emerge in court documents or when the companies announce their latest financial results. Apple is due to report its quarterly results on April 30 while Qualcomm is scheduled to release its numbers on May 1.”
“Qualcomm still faces other potential fallout from its demands to be paid royalties in addition to the fees it charges for its mobile chips. The Federal Trade Commission has accused the company of using its royalty system to stifle competition in the mobile chip market in another case in which Apple played a central role,” Liedtke reports. “A trial about the FTC’s lawsuit wrapped up in a San Jose, California, court in January, but the judge still hasn’t issued a ruling.”
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“Qualcomm is still waiting for a federal judge’s ruling on claims by the U.S. Federal Trade Commission that the company’s licensing practices are anti-competitive,” Ian King and Mark Gurman report for Bloomberg. “The regulator accused Qualcomm in a 2017 lawsuit of using its dominance in the smartphone technology market to thwart competitors’ growth and force companies including Apple and Huawei Technologies Co. to pay inflated patent royalties. A nonjury trial in San Jose, California, was held in January.”
“Separately, Qualcomm faces a class action on behalf as many as 250 million consumers seeking as much as $5 billion in damages over claims they suffered from inflated retail prices,” King and Gurman report. “The company has said it’s probably the largest class action in history and is asking an appeals court to block the consumers from proceeding as a group.”
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MacDailyNews Take: Hopefully, the end result of all of these legal actions will be that Qualcomm’s predatory licensing practices are over!
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Qualcomm and Apple settle, agree to drop all litigation – April 16, 2019
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Apple, allies seek damages of up to $27 billion in U.S. trial over Qualcomm’s predatory business model – April 15, 2019
Frosty relationship between Apple CEO Tim Cook and Qualcomm CEO Steve Mollenkopf has deepened dispute – April 13, 2019