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Apple Not Settling with Qualcomm, Says Source

Following reports that Apple owes Qualcomm up to AUD$9 billion for infringement, a source has spoken to Reuters claiming that Apple is not in talks “at any level” to settle the long-running legal dispute with the mobile chipmaker.

Apple previously used Qualcomm’s modem chips in its flagship iPhone models but later sued Qualcomm alleging that Qualcomm’s standard practice of taking a percentage of the selling price of those models as a patent license fee was illegal.

The 2018 iPhone models are equipped with Intel modems instead.

The chip maker has denied these claims and countered alleging that Apple owed the company US$7 billion in unpaid royalties.

A source who is close to the situation spoke with Reuters and stated that “There is absolutely no meaningful discussion taking place between us [Apple] and Qualcomm, and there is no settlement in sight…We are gearing up for a trial”. Said trial is set for early 2019.

Qualcomm CEO, Steve Mollenkopf, at the July company quarterly earnings call, confirmed that the two companies were trying to resolve the situation: “We continue to talk. We also have a number of … legal strategies that are in flight.”

Qualcomm is also embroiled in other legal disputes including with Huawei claiming the Chinese phone manufacturer has withheld payments, however, according to Reuters, these talks are progressing and certain repayments have been made.

In the days before Apple filed its lawsuit, Qualcomm was also attempting to settle an antitrust lawsuit brought against them by the U.S. Federal Trade Commission.

A federal judge has since issued a preliminary ruling that Qualcomm must license certain patents associated with producing modem chips to competitors like Intel, a move that could endanger Qualcomm’s current licensing practices.

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