“The European Union is drawing up guidelines on how much patent holders should charge for their technologies, a thorny issue that pits Apple and other users against Qualcomm and Ericsson,” Reuters reports. “Trillions of dollars in sales are at stake as regulators ponder whether a fridge maker should pay a different rate for crucial patents than a carmaker, or whether a flat, fixed rate would be fairer.”
“The patent fee model used by world No. 1 smartphone chip designer Qualcomm predominates in the tech industry and is based on how much value a technology adds to a product, but is opposed by Apple and others in Silicon Valley,” Reuters reports. “Other models are in use and the EU aims to set a uniform one for Europe, opening a new front in a global dispute that has already seen multiple lawsuits between Apple and Qualcomm.”
“Qualcomm’s patent fee model is based on the widely used so-called ‘fair, reasonable and non-discriminatory’ (FRAND) licensing model. The European Commission, however, has yet to make a final decision on which technology patent fee model it favours. Silicon Valley tech giants have sided with Apple, as have big Asian electronics makers who work for Apple, including Foxconn Technology Group,” Reuters reports. “Qualcomm’s approach sets royalty rates based on the proportion of ‘added value’ the patented technology provides to the completed product. Its previous patent licensing deal with Apple, for example, allowed it to take a percentage of the overall selling price for the iPhone, in exchange for supplying it with modem chips.”
Read more in the full article here.
MacDailyNews Take: The jig is up, Qualcomm.
Qualcomm’s FRAND abuse must not stand. Qualcomm’s licensing scam — charging a percentage of the total cost of all components in the phone, even non-Qualcomm components — is unreasonable, illogical, and irrational.
SEE ALSO:
Qualcomm loses two key rulings in its patent royalty fight with Apple – September 21, 2017
Apple’s A11 Bionic obliterates top chips from Qualcomm, Samsung and Huawei – September 18, 2017
U.S. judge rules Apple lawsuits against Qualcomm can proceed – September 8, 2017
Qualcomm CEO expects out of court settlement with Apple – July 18, 2017
Apple-Qualcomm legal dispute likely to be ‘long and ugly’ – July 7, 2017
Qualcomm wants court to block Apple from U.S. iPhone imports and sales – July 6, 2017
Judge rules U.S. FTC antitrust lawsuit against Qualcomm to proceed – June 27, 2017
Apple uses Supreme Court decision to escalate war against Qualcomm – June 20, 2017
Apple’s amended San Diego complaint against Qualcomm leaves no doubt: many billions at stake – June 20, 2017
Apple rejects Qualcomm’s allegation of throttling iPhones, says ‘study’ is ‘methodologically unsound’ – June 20, 2017
Apple just poached one of Qualcomm’s top guys – May 31, 2017
Actually, I believe it is even worse. Qualcomm may be charging for use of its standards-embedded software patents on any device that uses the industry standards for cell networks, even if there is NO Qualcomm hardware in the device.
Hope I’m wrong.
Charging extra for “added value?” Are they kidding? How subjective is THAT anyway?? I hope the rug is pulled out from under overreaching Qualcomm stat.
Are you preparing to be gutted Qualcomm? You have a lot of bad deeds to pay for.