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takyon writes:

The U.S. FTC is going after Qualcomm:

The Federal Trade Commission filed a complaint in federal district court charging Qualcomm Inc. with using anticompetitive tactics to maintain its monopoly in the supply of a key semiconductor device used in cell phones and other consumer products. Qualcomm is the world's dominant supplier of baseband processors – devices that manage cellular communications in mobile products. The FTC alleges that Qualcomm has used its dominant position as a supplier of certain baseband processors to impose onerous and anticompetitive supply and licensing terms on cell phone manufacturers and to weaken competitors.

[...] According to the complaint, by threatening to disrupt cell phone manufacturers' supply of baseband processors, Qualcomm obtains elevated royalties and other license terms for its standard-essential patents that manufacturers would otherwise reject. These royalties amount to a tax on the manufacturers' use of baseband processors manufactured by Qualcomm's competitors, a tax that excludes these competitors and harms competition. Increased costs imposed by this tax are passed on to consumers, the complaint alleges. By excluding competitors, Qualcomm impedes innovation that would offer significant consumer benefits, including those that foster the increased interconnectivity of consumer products, vehicles, buildings, and other items commonly referred to as the Internet of Things.

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EU Investigates Qualcomm For Antitrust Activities
Qualcomm Faces EU Antitrust Charges Over "Predatory Pricing"
Qualcomm Fined $853 Million by South Korea for Antitrust Violations

Also at Bloomberg and The Verge.

Original Submission

An Anonymous Coward writes:

https://www.bloomberg.com/news/articles/2017-04-19/qualcomm-s-chip-unit-expansion-helps-deflect-lawsuit-concerns

Qualcomm Inc., the biggest maker of chips used in mobile phones, said a push into new markets such as automotive and connected devices bolstered sales in the second quarter, helping relieve concerns that growth will be hurt by legal challenges in its licensing business.

[...] Qualcomm's net income in the fiscal second quarter, which ended March 26, fell to $749 million, or 50 cents a share. Excluding certain items, profit was $1.34 a share, compared with an average estimate of $1.19. Adjusted sales gained 8 percent to $5.99 billion. Analysts had predicted revenue of $5.87 billion.

[...] The results help validate Mollenkopf's decision to acquire NXP Semiconductor Inc. for $47 billion -- the biggest purchase in the company's history, due to close later this year -- to ease Qualcomm's reliance on the smartphone market. The semiconductor maker said its licensing business, which generates the majority of profit, didn't receive full royalty payments associated with phones sold by Apple Inc., which is suing Qualcomm, claiming the company abused its position to create a monopoly in chips. Qualcomm has countersued.

Original Submission

takyon writes:

Intel may be planning to sue Microsoft for its plans to include x86 emulation in Windows 10 for ARM machines:

In celebrating the x86 architecture's 39th birthday yesterday—the 8086 processor first came to market on June 8, 1978—Intel took the rather uncelebratory step of threatening any company working on x86 emulator technology.

[...] The post doesn't name any names, but it's not too hard to figure out who it's likely to be aimed at: Microsoft, perhaps with a hint of Qualcomm. Later in the year, companies including Asus, HP, and Lenovo will be releasing Windows laptops using Qualcomm's Snapdragon 835 processor. This is not the first time that Windows has been released on ARM processors—Microsoft's first attempt to bring Windows to ARM was the ill-fated Windows 8-era Windows RT in 2012—but this time around there's a key difference. Windows RT systems could not run any x86 applications. Windows 10 for ARM machines, however, will include a software-based x86 emulator that will provide compatibility with most or all 32-bit x86 applications.

This compatibility makes these ARM-based machines a threat to Intel in a way that Windows RT never was; if WinARM can run Wintel software but still offer lower prices, better battery life, lower weight, or similar, Intel's dominance of the laptop space is no longer assured. The implication of Intel's post is that the chip giant isn't just going to be relying on technology to secure its position in this space, but the legal system, too.

Also at ZDNet and CRN.

Original Submission

takyon writes:

Companies manufacturing iPhones for Apple have filed lawsuits against Qualcomm Inc., as Qualcomm has filed new patent suits against Apple in the EU:

Apple Inc. and its Asian contract manufacturers are hitting back at Qualcomm Inc. with legal claims that try to undermine the chipmaker's attempt to force them to pay licensing fees.

Qualcomm is asking for payments in excess of what it would normally receive, Apple, Compal Electronics Inc., Hon Hai Precision Industry Co. and others said early Wednesday in court filings. If successful, the counter-claims could cost Qualcomm billions of dollars in refunded fees and damages, Apple said.

Also Wednesday, Qualcomm said it had filed two new patent-infringement suits against Apple, this time in Germany. The patents, for ways to transmit information without draining battery life, are the European counterparts to those that are part of a case Qualcomm filed with a trade agency in Washington seeking to halt imports of Apple products into the U.S. market.

The filings, in California as well as Germany, represent the latest escalation in the dispute between Apple and Qualcomm over fees the San Diego-based company charges on all modern phones, even if the device doesn't have one of its chips. That revenue stream has made it one of the richest companies in the industry.

Also at ITWorld, The Register, and 9to5Mac.

Original Submission

takyon writes:

Apple is considering completely switching away from Qualcomm components, such as modems, in future iterations of the iPhone. Intel modems have already been used in some iPhones, and MediaTek is also under consideration:

Apple Inc has designed iPhones and iPads that would drop chips supplied by Qualcomm Inc, according to two people familiar with the matter. The change would affect iPhones released in the fall of 2018, but Apple could still change course before then, these people said. They declined to be identified because they were not authorized to discuss the matter with the media.

The dispute stems from a change in supply arrangements under which Qualcomm has stopped providing some software for Apple to test its chips in its iPhone designs, one of the people told Reuters.

The two companies are locked in a multinational legal dispute over the Qualcomm's licensing terms to Apple.

Qualcomm told Reuters it is providing fully tested chips to Apple for iPhones. "We are committed to supporting Apple's new devices consistent with our support of all others in the industry," Qualcomm said in a statement.

Apple and other companies are suing Qualcomm over licensing fees. Apple has had similar hardware-level disputes with Samsung in the past. Apple designs its own ARM chips but has to have them manufactured by Samsung or TSMC.

Also at Bloomberg and 9to5Mac.

Original Submission

Broadcom Considering Unsolicited $105 Billion Bid to Acquire Qualcomm

takyon writes:

Broadcom is deciding whether to proceed with the largest-ever attempted acquisition of a chipmaker:

Broadcom Ltd. is considering a bid of more than $100 billion for Qualcomm Inc., according to people familiar with the matter, in what would be the biggest-ever takeover of a chipmaker. Broadcom is speaking to advisers about the potential deal, said the people, who asked not to be identified because talks are private. The offer of about $70 a share would include cash and stock and is likely to be made in the coming days, the people said. A final decision on whether to proceed has not been made, they said.

[...] Qualcomm finds itself in a weakened state. A legal battle with Apple is costing revenue and jeopardizing a business model that for years made Qualcomm one of the most successful chipmakers. Before today, its shares had slumped 16 percent this year, compared with a 41 percent surge in the Philadelphia Semiconductor Index. A change of management at Qualcomm might help resolve the dispute with Apple more quickly, and thereby make Qualcomm's licensing and chip businesses more valuable, according to Sanford C. Bernstein & Co. analyst Stacy Rasgon. Earlier this week, Qualcomm executives said the legal process would "proceed under the court's schedule," indicating no resolution soon.

takyon writes:

Qualcomm Gets $1.2 Billion EU Fine for Apple Chip Payments

Qualcomm Inc. was fined 997 million euros ($1.2 billion) by the European Union for paying Apple Inc. to shun rival chips in its iPhones.

The largest maker of chips that help run smartphones "paid billions of U.S. dollars to a key customer, Apple, so that it would not buy from rivals," EU Competition Commissioner Margrethe Vestager said in an emailed statement on Wednesday. "This meant that no rival could effectively challenge Qualcomm in this market, no matter how good their products were."

Qualcomm struck a deal with Apple in 2011 that pledged significant payments if Apple only used Qualcomm chipsets for the iPhone and iPad devices. That agreement was renewed in 2013 until 2016. Qualcomm warned it would stop these payments if Apple sold another product with a rival chip. This effectively shut out competitors such as Intel Corp. from the market for LTE baseband chipsets used in the 4G mobile phone standard for five years, the EU said.

European Commission press release. Also at Reuters.

Previously: EU Investigates Qualcomm For Antitrust Activities
U.S. Federal Trade Commission Sues Qualcomm for Anti-Competitive Practices
Apple Could Switch From Qualcomm to Intel and MediaTek for Modems

Related: Apple vs. Qualcomm Escalates, Manufacturers Join in, Lawsuits Filed in California and Germany
Qualcomm Files New Lawsuit Against Apple, Alleging it Shared Confidential Information with Intel
Broadcom Offers $105 Billion for Qualcomm; Moves HQ Back to the USA

Original Submission

takyon writes:

Qualcomm accuses Apple of stealing its secrets to help Intel

Qualcomm Inc on Tuesday accused Apple Inc of stealing its chip-making secrets and giving them to rival Intel Corp, paving the way for Apple to switch to Intel's improved semiconductors, which may have cost Qualcomm billions of dollars in lost sales.

The accusation, made in a legal filing on Tuesday, is the latest salvo in a drawn-out patent dispute between the two tech heavyweights.

Qualcomm accused Apple of misusing secret Qualcomm software to share information about its chips with Intel engineers in a November lawsuit, but went further on Tuesday by saying Apple stole Qualcomm trade secrets as part of a "multi-year campaign of sloppy, inappropriate and deceitful conduct" designed to improve rivals' chipsets and ultimately divert Qualcomm's Apple-based business to Intel.

[...] The world's most valuable technology company previously used Qualcomm's modem chips in its iPhone, which helped the device connect to wireless data networks. With the iPhone 7, launched in 2016, Apple began using Intel modem chips in some models instead.

Also at CNBC.

Previously: Apple Sues Qualcomm for $1 Billion over Patent Royalties and "Retaliation"
Apple vs. Qualcomm Escalates, Manufacturers Join in, Lawsuits Filed in California and Germany
Apple Could Switch From Qualcomm to Intel and MediaTek for Modems
Qualcomm Files New Lawsuit Against Apple, Alleging it Shared Confidential Information with Intel

Original Submission