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The EU is drafting new Licensing Fee Guidelines that could affect the Apple-Qualcomm Dispute over Time

1 COVER  EU on patent FEES


The Apple-Qualcomm war has been ranging on since 2017 began as you can see by the 18 reports that they've posted this year at the bottom of this report. Now a new dimension could be in works in Europe that could alter patent infringement cases in the future.


According to a new report today we learn that 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.


The Reuters report further noted that "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.


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.


Antti Peltomaki, deputy director general at the European Commission, told a conference last week that the EU hopes to finalise its guidelines by the end of the year. They will not be legally binding but could provide a basis if the EU executive decides to enact rules in future.


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.


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.


Lobbying group the App Association (ACT), whose sponsors include Apple, Facebook, Intel and Microsoft, urged the Commission not to rush into setting new guidelines."


Apple – Qualcomm Battle History


The battle between Apple and Qualcomm has been raging since 2017 began and the battle history as we've covered it is noted below.


Jan 17, 2017: The U.S. Fair Trade Commission Sues Qualcomm for Forcing Apple to use its Chips in iDevices

Jan 20, 2017 - Apple Sues Qualcomm for $1 Billion Claiming Unfair Exclusionary Tactics and Charging Excessive Royalties

Jan 22, 2017: Apple's Full lawsuit against Qualcomm Comes to Light Revealing Secret Licensing Agreements and more

Jan 25, 2017: Apple takes their War against Qualcomm to Beijing China

Jan 25, 2017: While Qualcomm is Guilty of Gouging Asian Smartphone OEMs, the Chip Maker Believes that Apple is the Problem

March 02, 2017: Apple has launched a new Lawsuit against Qualcomm in the U.K.

April 11, 2017: Qualcomm Fires Back at Apple with Counterclaims Lawsuit Claiming Breach of Contract and more

April 28, 2017: Qualcomm Lowers Q3 Fiscal 2017 Guidance due to Apple Holding back Royalty Payments

May 03, 2017: Qualcomm Plans Retaliation against Apple and ask the International Trade Commission to Stop iPhone Sales

May 12, 2017 - The FTC Responds to Qualcomm's Motion to dismiss their case about Monopoly Power, Samsung & Intel File Amicus Briefs

May 17, 2017: New Court Filing Details Qualcomm Suing Apple's iPhone Suppliers for withholding Royalty Payments

July 06, 2017: Qualcomm Files another Patent Infringement Complaint against Apple with International Trade Commission

June 20, 2017: Apple has asked the Court to Stop Qualcomm's Double Dipping 'No License, No Chips' Market Tactic

July 19, 2017: Apple joins in new Lawsuit against Qualcomm filed by Suppliers Hon Hai, Pegatron, Wistron and Compal

July 21, 2017: Intel Files Statement with ITC claiming Qualcomm is trying to Force them out of the Modem Business with Apple

Aug 09, 2017: U.S. International Trade Commission to Investigate Apple's Alleged Unfair Trade Practice within 45 Days

Aug 14, 2017: U.S. Securities and Exchange Commission has Requested Qualcomm provide more info on Dispute with Apple

Sept 08, 2017: U.S. Federal Judge Rules that Apple's Multiple Foreign Lawsuits against Qualcomm can Proceed


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