Apple launches global war on Qualcomm

【World Wide Web Reporter Zhang Zhiying】 Apple once again launched a lawsuit, this time targeting Qualcomm. Apple in January this year in the United States, China to Qualcomm, and now joined the British battlefield. Cooke once said that Apple was forced to go to court because there is no better way to solve Qualcomm's unreasonable charges. However, Apple is not the first time it has used litigation as its commercial weapon. (For more details, please refer to Apple's dissatisfaction with patent fees. Qualcomm: We are doing research and development for the company.)

Apple accused Qualcomm of similar content as before, believing that Qualcomm's patent fees are too high, five times more than other companies. In addition, in the investigation of Qualcomm by the anti-monopoly department of the Korean government, Apple had been detained by Qualcomm for US$1 billion in cooperation with the investigation.

Qualcomm’s challenges have continued. Except for the previous year’s fine of approximately US$975 million in China, and a penalty of US$854 million in South Korea last year, the U.S. Federal Trade Commission (FTC) also took the initiative to issue a complaint to Qualcomm earlier this year. The main reason cited by the United States is that Qualcomm has adopted a "no license, no chip" bundle strategy, and that mobile phone manufacturers that do not accept patent licenses cannot purchase Qualcomm chips; not only that, Qualcomm also does. They refused to grant patents to rivals such as Intel, Samsung Electronics, and MediaTek to prevent them from producing chips. They also demanded that Apple use only their chips to give Apple lower prices.

Incidentally, in the case of Li Zichao’s case of corruption, the South Korean prosecutor’s investigation was specifically investigating the relationship between Samsung and the former vice chairman of KFTC, and the vice-chairman was responsible for handling Qualcomm’s anti-monopoly case. Qualcomm doubted. KFTC made an unfair ruling in favor of Samsung. Samsung currently denied this claim.

Qualcomm is an important supply chain for Apple. Why did Apple dare to make a bold report? Apple's A-series processors have always been regarded as one of the most powerful processors, but due to Apple's lack of patents on the mobile network, the processor's communications tie, the main use of Qualcomm's MDM, while Apple It is also Qualcomm's largest customer. However, the exclusive agreement between Apple and Qualcomm has already expired. In the iPhone 7 generation of products, Apple also uses Intel's products while using Qualcomm products. Therefore, Apple is not worried that Qualcomm's lawsuit will affect the supply of baseband chips. .

Qualcomm noted earlier that it has never raised its patent fees, and that Apple has accepted the same patent fee terms as the other 100 Chinese companies. He believes that Apple just hopes to scrutinize Qualcomm’s technology patents through lawsuits. Qualcomm said: "Although Apple's use of Qualcomm patent brings hundreds of millions of profits to itself, Apple still hopes to slash the reasonable market value established by Qualcomm." (See details: Qualcomm: What's not fair about Apple's patent terms in China? One article)

Qualcomm is the world's largest mobile communications technology development company, has a large number of patents related to 3G and 4G mobile communications, patent licensing and patent fees are one of the two pillar businesses of Qualcomm, and another major business is the baseband processor and application processing. Chip. The seriousness of this lawsuit is that the patented licensing fees for wireless chips accounted for 85% of its pretax profits.

As patent licensing has become a lucrative business, coupled with fierce competition in the mobile phone processor market, especially Apple, Samsung Electronics, Huawei and other companies gradually design their own mobile phone processors, some of Qualcomm’s shareholders had asked the company to split. That is, it is divided into patent licensing companies and processor companies.

Through the statement issued by Apple and Qualcomm in January this year, we can better understand the positions and attitudes of both parties.

Apple: "Over the years, Qualcomm has been insisting on charging unfairly for technology patent fees, but these technologies have nothing to do with them. The more innovative Apple is, brings unique features like fingerprint recognition, advanced displays, cameras, etc. The more we get more money from it, the more costly it is for Apple to continue to innovate. Although it is only one of the suppliers that contributes to the basic network standards, Qualcomm insists on fees charged to Apple but it is the other authorizers. At least five times the total sum of charges to Apple. Qualcomm's own commercial establishment is to strengthen its dominant position by excluding strategies and excess royalties."

Regarding Apple’s discussion, Qualcomm responded by saying: “We are still in the process of reviewing the lawsuit, but it is clear that Apple’s claim is based on a false basis. Apple’s attempt to misinterpret our agreement has also distorted our invention in technology. , Contributions, and the arduous and valuable value of sharing it with all handset device manufacturers through an authorization program.Apple has been actively encouraging regulatory oversight of Qualcomm’s businesses in jurisdictions around the world, including recent Apple KFTC initiatives in Korea. Decisions and FTC lawsuits distorted the facts and concealed information. We welcome the court to hear these unfounded allegations, and we will be able to fully discover Apple's actions and make a strong confirmation of the facts."

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