Qualcomm CEO touts improved relationship with Apple after bitter legal dispute

Qualcomm CEO Steve Mollenkopf in an interview on Thursday said the chipmaker's relationship with Apple has greatly improved since the two companies ended a bitter legal battle over patent licensing and royalties in 2019.

Mollenkopf in an interview with Bloomberg's David Rubenstein made the briefest of mentions regarding an easing of tensions between his company and Apple.

Asked whether the two are "good partners" following a worldwide legal scrum, Mollenkopf said, "We are."

"The discussion is really about products and how do we launch products as fast as possible. It's much more natural now," he added.

The two tech firms for two years fought a very public battle over patent licensing tactics, IP royalties, manufacturing and "abusive" business practices. Apple hurled the first stone in 2017, claiming Qualcomm engages in extortion, monopolistic practices, price gouging and so-called "double dipping" on patent royalties from contract manufacturers.

Qualcomm hit back with counterclaims, including allegations that the iPhone maker stole trade secrets, to spark a litany of back-and-forth complaints lodged in courts and government regulatory agencies around the world.

Apple and Qualcomm ultimately settled out of court in April 2019 on the day an initial patent licensing trial got underway. All cases were dropped as part of the deal, with Apple entering into a six-year licensing agreement and multiyear chipset supply understanding with the chipmaker.

Like Mollenkopf today, Apple CEO Tim Cook struck an upbeat tone when commenting on the arrangement last year.

"We're glad to put the litigation behind us, and all the litigation around the world has been dismissed and it's settled," Cook said at the time. "We're very happy to have a multi-year supply agreement, and we're happy that we have a direct-license arrangement with Qualcomm which I know was important for both companies and so we feel good about the resolution."

For its part, Qualcomm maintained Apple's lawsuit was, at its core, about scoring a better licensing deal for modems and modem parts. Those assertions were partially borne out in court when documents revealed Apple was exploring ways to "hurt Qualcomm financially" since at least 2014 in a bid to reduce royalty payments.

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35 Comments

wood1208 10 Years · 2938 comments

About 4 years ago

Mr. Mollenkopf, time will tell !!

sflocal 16 Years · 6138 comments

What a clown. In the back of his mind... he knows. He knows that Apple will boot QC out to the curb the first moment they get and it will be sudden, and quick. What he is doing is blowing smoke to keep the stock price up and retire before the hammer drops. That's what he is going for.

CloudTalkin 5 Years · 916 comments

sflocal said:

What a clown. In the back of his mind... he knows. He knows that Apple will boot QC out to the curb the first moment they get and it will be sudden, and quick. What he is doing is blowing smoke to keep the stock price up and retire before the hammer drops. That's what he is going for.

What are you even talking about? The only thing that makes sense in your comment is Qualcomm knows that Apple is in the process of building their own chips so their relationship is going to change in the future. It won't be sudden and quick. We're looking at a minimum of 5 years down the road on licensing at the current rate, and an indeterminate multiyear timeframe regarding chips. Even after Apple has their own chips they'll still have to license Qualcomm's FRAND patents. The big thing for Apple is they wouldn't be beholden to Qualcomm for chips after they get their own up and running.

The dude is happy because they now have a direct license with Apple. There is no longer a middle man. Their past agreement was structured through Apple's contractors. Seriously, both companies have come to an agreement and neither is wasting money on litigation. Why wouldn't he be happy about their improved relationship?

seanismorris 8 Years · 1624 comments

B.S PR

These are bitter rivals forced to work together.

When Apple has their wireless chip (etc) ready for prime time, they’ll be singing another tune... and another bitter divorce.

FizzyPanda 5 Years · 17 comments

He has to put a positive spin on things but the reality is Apple was able to redefine their relationship which limits QC ability to earn money off them in the long run. It didn't quite work out as Apple wanted but they got what they needed which was enough time and IP to build their own solution. Due to QC sheer amount of IP Apple will still need to pay some license fees but those won't be on the basis of sales like it was before. To be honest I was surprised QC settled like this because this really does suit Apple, they were even able to buy Intel's IP in the end.