Apple

Apple, Qualcomm head into latest legal battle, with billions at stake


The two technology giants meet on Monday in a San Diego courtroom to kick off a five-week, $27 billion trial that'll determine whether Qualcomm operates a smartphone modem chip monopoly and charges too much for licensing fees.


An even bigger concern for Qualcomm: whether it will have to change its entire business model, collecting far lower royalties based on the price of its chips, not the phones they're in.


They supply us with a single connectivity component, but for years have been demanding a percentage of the total cost of our products -- effectively taxing Apple's innovation," the comments read.


Apple has long made the processors that act as the brains of its iPhones, but the company has relied on Qualcomm's modems to connect its devices to cell networks.


Apple also said Qualcomm sought to punish it for cooperating in a South Korean investigation into the chipmaker's licensing practices by withholding a $1 billion rebate.


The US Federal Trade Commission sided with Apple and filed an antitrust lawsuit two years ago, accusing Qualcomm of operating a monopoly, requiring exclusive agreements and charging excessive licensing fees for its technology.






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