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As Reuters explains, contract factories that construct the iPhone usually paid Qualcomm “billions of dollars per year” to make use of Qualcomm’s patented know-how within the iPhone. In flip, Apple would reimburse the factories. Further, Qualcomm and Apple had a separate settlement that may see Qualcomm pay Apple “a rebate on the iPhone patent payments if Apple agreed not to attack in court or with regulators.”
Two years in the past, Apple sued Qualcomm and claimed that the chip maker had breached their settlement by not paying these patent royalty rebates. Qualcomm, nevertheless, stated it stopped paying the rebates as a result of Apple inspired different smartphone makers to “complain to regulators” and made “false and misleading” statements to the Korean Fair Trade Commission.
This night, Judge Curiel got here down on Apple’s facet, ruling that Qualcomm should pay Apple the missed patent rebate funds. In an announcement, Apple stated, “Qualcomm’s illegal business practices are harming Apple and the entire industry.”
Meanwhile, Qualcomm VP and basic counsel Don Rosenberg stated the corporate is glad to see Apple’s position on this settlement uncovered:
“Although the Court today did not view Apple’s conduct as a breach of Apple’s promises to Qualcomm in the 2013 Business Cooperation and Patent Agreement, the exposure of Apple’s role in these events is a welcome development.”
Despite Curiel’s ruling, nevertheless, there may be nonetheless rather a lot undecided. The choice is not going to be last till after subsequent month’s trial. Furthermore, Apple’s contract factories have already withheld $1 billion in funds to Qualcomm. Thus, Qualcomm has already accounted for this in its monetary statements and it’ll not want to chop a test to Apple.
Apple’s contract factories, which underneath regular circumstances would pay Qualcomm for patent royalties owed on iPhones, have already withheld the almost $1 billion in funds to Qualcomm. Qualcomm’s Rosenberg stated these withheld iPhone funds have already been accounted for in Qualcomm’s current monetary statements.
“Apple has already offset the payment at issue under the agreement against royalties that were owed to Qualcomm,” Qualcomm’s Rosenberg informed Reuters.
Meanwhile, within the separate Qualcomm versus Apple patent infringement case ongoing in San Diego, the jury left at present without a decision. Deliberations proceed tomorrow morning at 9AM PT.