According to foreign media reports, after more than one year of malicious accusations and a series of lawsuits and counterclaims, the legal disputes between Apple and Qualcomm amounted to several billion US dollars.
The hearings in the three most important markets of the United States, China and Germany will soon determine whether Apple can save billions of dollars by forcing Qualcomm, one of the world’s largest chip makers, to change its legal business. Patent costs.
According to estimates that Qualcomm may charge for each handset, Apple’s current patent fees paid to Qualcomm amount to between US$2.5 billion and US$4.5 billion, equivalent to approximately one-fifth of Qualcomm’s annual revenue.
Apple has been arguing that Qualcomm uses its basic patent covering modern smart phone communication methods to obtain unfair high royalties and intimidating Apple to buy Qualcomm chips.
Qualcomm responded by arguing that Apple’s refusal to pay royalties valued and paid by other companies in the industry is equivalent to theft of the company’s property.
'Trying to solve the complex lawsuits between these two companies is a daunting task,' said Will Stofega, IDC's mobile industry analyst.
The legal team of Apple and Qualcomm has been very busy, and this kind of busyness may continue. The data provided by Matt Larson, the Bloomberg intelligence analyst, shows that the two companies are currently in six countries. The 16 jurisdictions filed more than 50 independent intellectual property and antitrust lawsuits.
Larsson pointed out in a recent research report that although there is no independent case that can solve all problems, a series of decisions in the second half of this year may help solve the problem eventually.
Next week, the International Trade Commission in Washington, DC, will start a hearing on Qualcomm’s claim that Apple infringed on three of its patents. Qualcomm asked the committee to order the ban on the import of all iPhone 7 phones that do not use Qualcomm’s chips. The iPhone currently occupies the Apple camp. More than 60% of revenue is collected, all manufactured in Asia.
Similarly, a court in Mannheim, Germany, will hold a hearing to hear the lawsuit initiated by Qualcomm. Qualcomm said in the lawsuit that Apple's iPhone using Intel chips infringed on the company’s patents and should be banned from exporting to the German market.
Although the judge of the court has initially agreed with Qualcomm’s opinion, the case will not be pronounced until the European Patent Office decides whether the patent is valid.
In the world’s largest smart phone market in China, the patent review board of the State Intellectual Property Office has started a hearing this month. The next step will be to consider Apple’s claim that all of Qualcomm’s patents are invalid. Analyst Larsson said. The trial of all these cases is expected to be released in the third quarter of this year.
IDC analyst Stoeffga said, 'China's decision is better than all countries. The Western European market is very important, but it cannot be compared with the Chinese market. They are fighting for shares, and they don't want anything that will hinder their progress.'
Qualcomm management insists that behind the high-profile legal accusations, the controversy is only commercial negotiations. Once they prove their legal status, they are likely to reach a settlement and restore normal customer and supplier relationships.
'At first, we found ourselves on the defensive, responding to false statements spread by Apple. Everyone knows Apple, but no one knows how much Qualcomm's products hold in Apple products,' said Qualcomm General Counselor Don Rosenberg (Don Rosenberg said. "I think we are in a transitional stage. Our story is there now. The fact itself is there."
Up to now, the Apple spokesperson has not commented on this report and only mentioned the company’s previous statement on the conflict. Apple denied any patent infringement of Qualcomm and argued that those patents in the lawsuit should not be issued at all. 'Qualcomm's response It is to retaliate against companies that dare to challenge their deep-rooted monopoly, including Apple and Intel,' Apple said in its counterclaim.
Matt Ramsay, an analyst at investment bank Cowen Inc., said: 'Apple needs to change its stance on some governments or courts that have to issue a ban on the iPhone. I feel that Apple's business will continue for a while.'
Apple faced great risks in the case of the International Trade Commission. Josh Landau, patent advisor of the Computer Communications Industry Association, said that if the committee issues a ban on Apple products, it will promote Apple’s settlement with Qualcomm as soon as possible. .
For Qualcomm, the signs that Apple will win may increase investors and analysts' concerns over its lucrative patent business. The patent business is critical to Qualcomm’s technological advancement in keeping the chip industry in the future.
Although it is widely expected that Qualcomm will eventually be able to reconcile with Apple, the timing and terms of reconciliation are still unknown. Both the companies and their investors hope that the court's verdict can provide a solution to the final settlement.