Judge awards Apple $1 billion in latest dispute with Qualcomm

Qualcomm

Qualcomm

This, however, doesn't necessarily mean that Qualcomm will have to pay Apple this amount.

The $31 million penalty is small change for Apple, the second most valuable US company after Microsoft Corp, with a market value of $866 billion and annual revenue totaling hundreds of billions of dollars.

Aside from the specifics of the outcome and the paltry $31 million payment that Apple must make-chump change for a company with Apple's resources-this case does, in fact, represent a major turning point in the two companies' legal battles because it puts a per-device dollar figure on Qualcomm's intellectual property: The three patented components represent about $1.41 per device, which Qualcomm says debunks Apple's claim that its licensing fees are too high.

"Qualcomm's ongoing campaign of patent infringement claims is nothing more than an attempt to distract from the larger issues they face with investigations into their business practices in United States federal court, and around the world", the Cupertino, California, company said. The Cupertino, California-based company has accused Qualcomm of using its control over so-called standard essential patents, which covers technology uniformly adopted by telecommunications providers and equipment makers, to extract excessive royalties for the entire patent portfolio, including non-essential patents, that it licenses to smartphone makers.

"Today's unanimous jury verdict is the latest victory in our worldwide patent litigation directed at holding Apple accountable for using our valuable technologies without paying for them", said Don Rosenberg, Qualcomm executive vice president and general counsel. Apple said it was disappointed with the decision.

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It's hard to believe the arrangement between Qualcomm and Apple was established in the first place. That dispute is focused on Qualcomm's patent royalties with Apple and involves billions, Cnet said. That trial is scheduled to start April 15. Qualcomm's patent licensing model relies on charging phone makers a cut of the selling price of the phone, a practice Apple has alleged is unfair and illegal.

In a separate agreement, Qualcomm agreed to pay Apple "a rebate on the iPhone patent payments if Apple agreed not to attack [Qualcomm] in court or with regulators".

While the damages awarded Friday aren't significant to either company, from Qualcomm's perspective, valuing just three of its more than 10,000 patents at $1.41 per phone shows the overall worth of its inventions. It also claimed that Apple made "false and misleading" statements during a Korean Fair Trade Commission investigation into Qualcomm.

"Apple is very skilled at handling appeals and taking a longer-term view".

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