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Apple Accused Qualcomm of Spreading fake news and Refused to Settle

Source:Iris Liang Time:2019-1-21 11:03:03

"Don't behave" and "fake news", Apple's chief litigator and vice president, Noreen Krall, criticized rival Qualcomm when he talked about the company's recent global patent dispute. But before that, the entire mobile phone industry, and even the communications industry, must look up to Qualcomm, because the latter's rich patent reserves have affected the situation for more than a decade. There is fierce competition in every industry, and only superior quality and core technology can have the capital against competitors. SEKO Machinery's intelligent insulated stainless steel industrial welded pipe bright annealing equipment was followed by competitors' emulation. But even if it is true or false, the annealing effect of the steel pipe is almost indistinguishable from the effect of our products.
At noon on January 17, Noreen Krall accepted a telephone interview with the Beijing News reporter and revealed that Apple is having a separate case in San Diego and Qualcomm, and the content involved is much broader than that of the US Federal Trade Commission (FTC). Including Qualcomm's "forbidden order" in the agreement. This led to a collective buzz of a multi-billion dollar industry.

The so-called "forbidden order" means that Qualcomm requires customers not to complain to anyone in the agreement, otherwise the chip supply will be stopped. This has made Apple and some manufacturers using Qualcomm chips hard to get back in the face of financial pressure, because Qualcomm chips are a necessary part of their main products, and when they look for profit growth points, it becomes a stubborn disease.

Among them, Apple recently accepted a number of media interviews, accusing Qualcomm of abusing its market dominance and forcing the company to accept its "no license without chip" policy. Noreen Krall said that Qualcomm even asked the company not to complain to the government and to ask for exclusion. In general, Apple will choose two or more suppliers on the same part to control costs.

As of the press release of the Beijing News, Qualcomm did not respond to the existence of the “ban”, but Qualcomm officials said that Qualcomm’s business model poses a threat to Apple because of the ability of the business model to give the iPhone It was also provided to Apple's competitors.

Apple Qualcomm: The past decade has kidnapped the entire industry

Currently, Apple and Qualcomm's patent lawsuits are concentrated in three countries.

Jiang Hongyi, one of Qualcomm's attorneys and one of the lawyers of Beijing Liande Law Firm, said that the patents used in each case are different, and the technical field of patents involved covers a wide range. The number of cases accepted and the backlog of different courts are different, which affects the trial process.

In Germany, the Munich District Court ruled that Apple infringed Qualcomm's patents and demanded the suspension of infringing products, but the Mannheim City District Court dismissed Qualcomm's lawsuit in a preliminary oral judgment. Qualcomm responded to the Beijing News reporter that the Mannheim court made a too narrow explanation for some of the characteristics of the patent, and Qualcomm strongly opposed it and will appeal.

In the United States, the Federal Trade Commission's (FTC) monopoly lawsuit against Qualcomm entered the trial stage. The court recently heard a number of testimonies and will end the trial on February 1, 2019. Noreen Krall said the evidence from the FTC is very good and it is very difficult for Qualcomm to win the lawsuit.

"Qualcomm has kidnapped the entire industry in the past decade." Noreen Krall will call Qualcomm's showdown "the entire industry and Qualcomm confrontation."

Qualcomm asked Apple: "We must ban the ban and stop selling related products."

Founded in 1985, Qualcomm has invested more than tens of billions of dollars in research and development expenses, and about 20% of its annual revenue is spent on technology research and development. With its technological advantages, Qualcomm once became the only chip company to meet the requirements of Chinese telecom operators for terminal equipment, while other chip manufacturers have obtained patents for cross-licensing patents with Qualcomm. As for the patents of terminal manufacturers, they mainly focus on functional design. It is almost negligible in core patents.
Qualcomm adopts a technology licensing model, which is considered to be a common method in the industry, which is to license mobile phones to the necessary patents for cellular communications, that is, to purchase Qualcomm chips, the technical standards supported by the chips, terminal manufacturers must obtain production and Sell at least one license. Moreover, Qualcomm's chips and licensing fees are separate.

For the reason for collecting patent fees according to the wholesale price of mobile phones, Qualcomm said that the fairness of this approach is that relatively low-cost terminals use less technology, so lower license fees are paid; More technology, so pay a higher license fee, and the price of the mobile phone that charges the license fee is limited to $400.

It can be seen that in the patent confrontation between Apple and Qualcomm, Qualcomm sued Apple mainly for the use experience, rather than the core basic communication patent. In response to Qualcomm’s lawsuit in China, Apple chose to introduce a new software upgrade to remove Qualcomm’s alleged infringement.

Noreen Krall told the Beijing News that on December 27, 2018, two weeks after the ban, Apple engineers had developed, tested, distributed and installed the new software version. All iPhones sold in China are not related to Qualcomm. Infringement issue. On January 3, 2019, Apple submitted a compliance report to the Fuzhou court, respecting the court's decision and taking action.

However, lawyer Jiang Hongyi told the Beijing News reporter that although Apple submitted evidence of compliance with the ban on the Fuzhou court, it asked the court to keep it secret and not open to Qualcomm. Such behavior is very strange and there is no legal basis, because the performance of the effective referee is not confidential. In doing so, Apple can only prove that it has not actually fulfilled the ban and did not dare to disclose to Qualcomm the evidence of compliance with the so-called “performance ban”.

"The new software update for Apple has been studied and is still infringing." Jiang Hongyi said, "Before the court made a new decision, Apple must implement the ban and stop selling related products."

In this case, Apple also acknowledged that the patent is not a core patent for mobile communications. Noreen Krall said that these are very old patents, not Qualcomm's own inventions, but purchased from companies such as Sony, which have been used for more than 10 years. Qualcomm's goal is to use these non-advanced patents to issue a ban on the market, forcing Apple to sign an unreasonable agreement on core patent licensing.

Apple's new accus

Qualcomm spreads fake news and diverts public attention

In Apple's view, the dispute between the two sides has not involved related technology, but Qualcomm still requires the court to enforce. According to Noreen Krall, this hurts consumers' choices and has a big impact on China's employment, as most of the world's smartphones are produced in China. Apple also accused Qualcomm of hiring agencies to disseminate fake news about Apple to divert public attention to its business model.

Noreen Krall revealed to the Beijing News reporter that "Qualcomm, outside the United States and even outside the United States, spreads the message through the network of fake news, using people's fears to distract and avoid the government and courts investigating their own illegal behavior as a company." But Noreen Krall did not directly respond to whether the reporter would sue Qualcomm for this.

The above-mentioned Qualcomm related person responded to the Beijing News reporter saying that Qualcomm never spread false or misleading news. “Qualcomm does its utmost to explain to the public our business model and how our inventions have profoundly affected the rich functionality of all smartphones. Unlike Apple’s limited use of its technology, Qualcomm has widely supplied its technology to mobile phones. Manufacturer."

How will the next step in the patent war develop? Noreen Krall responded to the Beijing News reporter's statement that "there is no possibility of reconciliation." "Qualcomm must change their business model. Apple and Qualcomm's views can be said to be "southern." In Noreen Krall's view, the dispute between the two sides mainly includes three levels: First, Qualcomm requires that a patent license must be purchased to obtain the chip, but Apple believes that this is not reasonable; secondly, Qualcomm's charge is for the whole machine price, but Apple believes Such charges include patents on mobile phones that are not part of Qualcomm. This is also unreasonable. Third, Qualcomm relies on chip supply and must accept relevant provisions, so the negotiation process is unfair.

Noreen Krall concluded that the global litigation situation is basically stable, and almost all the rulings are not conducive to Qualcomm, especially the FTC case, the evidence of which is very powerful. It is very difficult for Qualcomm to win the lawsuit, which will force Qualcomm to change its business model, not only for Apple, but also for the whole industry, and avoid "Qualcomm tax."

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Iris Liang
SEKO Machinery & Technology Co., Ltd
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