BIZ LAW Apple and Qualcomm Do Not Like Each Other

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It’s time to get acquainted with the long-running drama between Apple and Qualcomm that makes last night’s Thrones seem like How to Train Your Dragon. Driving the news: Today, Apple’s patent lawsuit against Qualcomm is set to begin jury selection in San Diego. During the $27 billion trial, the CEOs of both companies are expected to take the stand... Which could be awkward According to the WSJ, Apple’s Tim Cook and Qualcomm’s Steve Mollenkopf had a very...tense meeting a year ago to hash out patent issues. As the Journal puts it, “The awkwardness punctuated a distant relationship between the chief executives that has turned their companies’ conflict into one of the ugliest corporate battles in history.” Getting strong dragonpit vibes. What’s the beef in the first place? Nearly 34-year-old Qualcomm pioneered cellular communications in the 1990s that eventually became the norm on most mobile devices. Because of that, it can charge patent royalties on just about every smartphone sold—a large chunk of its bottom line. Apple says…it’s unfair to base royalties on a phone’s total price. Under that logic, Qualcomm makes more money when manufacturers add high-tech innovations that inevitably drive up prices. Qualcomm says...its business model has helped fund new tech innovations. And that Apple/its partners violated licensing contracts and infringed on patents. Large numbers alert Apple wants Qualcomm to repay $3.1 billion for patent rights it says Qualcomm’s exhausted. And Qualcomm says some Apple partners owe over $7.5 billion in unpaid royalties. Plus, it says Apple should foot a penalty of $15 billion or more. Bottom line: This dispute has legal implications on three separate continents, not to mention Apple is one of the world’s biggest smartphone sellers and Qualcomm is one of the biggest chip designers. For consumers, failure to reach common ground could mean a change in iPhone connectivity speeds...and further delay a meaningful iPhone 5G rollout.