At Key Hearings in China, the United States and Germany, Apple and Qualcomm Reached a Settlement As soon As Possible

On June 13, it was reported that the protracted patent dispute between apple and Qualcomm, a wireless chip supplier, does not seem to end soon. They have filed more than 50 lawsuits in 16 jurisdictions in six different countries. Apple accused Qualcomm of unfair terms in using its chips and patent licenses, while Qualcomm accused apple of infringing these patents. However, analysts believe that key hearings in the three countries may prompt the two sides to reach a settlement faster than expected.Hearings in the three most important markets of the United States, China and Germany will soon decide whether it is legal for apple to force one of the world's largest chip manufacturers to change their business methods and save itself billions of dollars in technology licensing fees. Based on the patent fee charged for each mobile phone sold by apple, Apple may owe Qualcomm $2.5 billion to $4.5 billion in unpaid fees, which may be equivalent to one-fifth of Qualcomm's annual revenue.Apple argued that Qualcomm used its patent ownership (covering the basic principles of modern smartphone communication) to obtain unfair high returns and forced apple to buy its chips. Qualcomm retorted that Apple was stealing its assets and refused to pay for the use of technologies cherished and paid for by other companies in the industry. Will Stofega, a mobile industry analyst at IDC, a market research firm, said: "trying to sort out the complex litigation relationship between the two companies is a difficult task."

The legal teams of apple and Qualcomm are always busy, and this trend is likely to continue. Matt Larson, an intelligence analyst at Bloomberg, said that apple and Qualcomm have more than 50 independent intellectual property and antitrust lawsuits in 16 jurisdictions in six different countries. In a recent research report, Larson wrote that although no single case can solve all the problems, some decisions in the second half of 2018 may create a motivation for settlement.Next week, the International Trade Commission (ITC) in Washington will begin a hearing on Qualcomm's lawsuit against apple for infringing its three patents. Qualcomm asked the agency to ban the import of all iPhone 7 phones without Qualcomm chips. Most of the iPhones that provide apple with more than 60% of its revenue are actually produced in Asia.Similarly, a court in Mannheim, Germany, is hearing Qualcomm v. apple. Qualcomm believes that the iPhone using Intel chips infringes Qualcomm's patents and should be excluded from the market of Europe's largest country. The judge temporarily agreed with Qualcomm, but decided to suspend the case until the European patent office decides whether the relevant patent is valid.

In China's largest smartphone market, the China Patent Review Committee will hold hearings this month and next month. Apple filed an application to cancel the patents Qualcomm is trying to use. Larson said decisions in these cases may be made in the third quarter. "China's ruling is the most important. Western Europe is also important, but it still can't compare with China. They are fighting for sharing and don't want anything to hinder them," said stofiga of IDCQualcomm management insists that behind the fierce rhetoric of these legal charges, the dispute is actually just a commercial negotiation. Once they prove their legal status, they are likely to reach a settlement and restore the normal customer supplier relationship. Don Rosenberg, Qualcomm's general counsel, said: "at first, we found ourselves on the defensive and could only respond to the wrong statements spread by apple. Everyone knows apple, but no one knows Qualcomm's important position in Apple products. I believe we are in a transitional stage, and the facts will be self-evident."An apple spokesman declined to comment and referred to the company's previous statement on the conflict. Apple denied that it had infringed any of Qualcomm's patents and claimed that the patents in the lawsuit should not be published publicly. Apple said that in the face of increasing regulatory sanctions and litigation tsunami, Qualcomm submitted a complaint to the International Trade Commission (ITC). Qualcomm's response is to retaliate against companies that dare to challenge their deep-rooted monopoly, including apple and Intel. "

"If Apple wants to change its position, some government entities or courts are willing to issue an injunction on the iPhone. I have a feeling that Apple may last for some time," said Matt Ramsay, an analyst at CowenThe International Trade Commission (ITC), German courts and China are all entities that help to solve patent disputes. These places are known for speed, hold a favorable position for patent owners, and are more likely to impose some form of sales ban on products found to infringe patent rights. Josh Landau, patent consultant of the computer & Communications Industry Association, said: "the ITC case has raised the level of risk faced by apple. If the committee issues an import ban on Apple products, it will promote them to reach a settlement faster."For Qualcomm, signs that Apple has the upper hand may exacerbate concerns among investors and analysts that its lucrative licensing business is disappearing. Although the ruling time and specific terms of the patent dispute between the two sides are uncertain, the settlement agreement between the two giants is widely expected. Both companies and investors hope that the legal ruling will provide a roadmap for a final solution.