Qualcomm Claims Apple Owes It $7 Billion
There are new numbers being released in the legal fight between Qualcomm Inc. (NASDAQ: QCOM) and Apple Inc. (NASDAQ: AAPL). Qualcomm now claims that Apple is $7 billion behind on patent royalty payments. Apple has been withholding royalty payments to Qualcomm since their dispute began in early 2017.
Apple sparked the dispute with a $1 billion lawsuit accusing Qualcomm of double-dipping on patent royalties. Apple argued that Qualcomm charged once for the actual royalties, and again when the chips were used in iPhones. Qualcomm says that its royalty arrangements are legal. As of April, Apple and its suppliers had withheld roughly $1 billion in royalty payments over the dispute.
There has been a string of accusations between the two companies throughout the court battle. Apple has claimed that Qualcomm tries to get licensing fees for technology it doesn’t own. Last month, Qualcomm accused Apple of stealing its source code and giving it to Intel. This battle is being heard in a federal court in San Diego. Currently, Apple and Qualcomm are fighting in about 100 legal proceedings around the world.
While Qualcomm is claiming that Apple owes it $7 billion, the declaration doesn’t guarantee that Apple actually owes that much. There seems to be some evidence that Apple is being overcharged. According to the dispute, royalty payments to Qualcomm were five times higher than the rest of Apple’s payments combined.
Apple CEO Tim Cook has said that the company is open to settling the legal dispute, but expects the legal battle to be a long one. Qualcomm’s CEO said he hopes to one day do business again with Apple. However, with the amount of money at stake, this legal fight may continue for years to come.