jimbo1
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Qualcomm loses two key rulings in its patent royalty fight with Apple
Why a rehash of old news (“Qualcomm got two bits of bad news today...”- 9/20/17) when the Judge’s ruling was 9/08/17?
1) QCOM stopped the “patent peace rebates” to AAPL because it violated that agreement, **not** because of its cooperation with the FTC / KFTC, but because it provided them with false information such as- 1) double dipping, 2) basing royalties on the iPhones full value, 3) demanding exclusive use of QCOM modems, etc
2) QCOM has signed FRANDly licenses with over 300 companies (big and small), with AAPL being virtually the only holdout although selling iPhones under the umbrella of its contract manufactures for close to 10 years using QCOM technology to become the world’s richest company. Those royalty bearing licenses allow device manufactures to sell 2G/3G/4G devices using QCOM’s technology developed by its thousands of engineers (20,000 currently) over the past 30 years.
3) QCOM designs and manufactures the world’s leading mobile wireless chipsets (APs / modems). AAPL and others are free to use any company’s chips (INTC, MediaTek, Spredtrum, etc), so long as the device makers using 2G/3G/4G technology have a QCOM license.
4) QCOM’s royalty is base is **not** on the total sales price of the device, but at a capped amount believed to be between $300 - $400, significantly less than the iPhone’s ~$700+ ASP. QCOM’s implied royalty rate for FY16 was less than 3%
5) QCOM’s royalty is at the device level and **not** at the component (modem) level as demanded by AAPL, since only a small percentage (<10%) of QCOM’s patents are practiced solely within the modem-- most are practiced within the modem & the device, the device alone, or within the network itself..
