Apple vs Qualcomm. It Is More Than Money


By Gabe Moretti – I t would be impossible to grow an industry without standards that make it possible for various portion of the industry to cooperate and allow tools and methods to work together. To this end that are organizations that develop, distribute, and manage such standards. The IEEE is the one most familiar in the US.

Qualcomm and Apple are both members of ETSI, an SSO based in Sofia Antipolis, France, which includes more than 800 members from countries across five continents. ETSI produces globally accepted standards for the telecommunications industry. For example, ETSI created or helped to create numerous telecommunication standards, including the 2G/GSM, 3G/UMTS, and4G/LTE cellular communication standards.

Developing a standard requires the contribution of Intellectual Property (IP) by entities, usually corporate entities, universities, or other research organizations. Offering IP without restrictions would, almost always, hurt the offering entity financially, so a legal tool that protects it has been developed. For patents that companies have declared “essential” to the standard, patent law is reinforced by contractual obligations to license such patents on Fair, Reasonable, And non-Discriminatory commitments. The legal wording of the tool is called a FRAND (or RAND) commitment. The entire issue revolves around the definition of the term “Reasonable.”

The first thing to be realized is that this claim is about how to share revenue, not about standard making processes. Apple wants a larger share of revenue from the sale of its product, while Qualcomm wants to protect what it gets right now by re-defining how royalties are computed. Yet, there are other issues raised that may impact the electronics industry and EDA vendors.

READ  Social media's journalism challenge

Should royalties be fixed at a certain amount regardless of the sale price of the unit that use the licensed IP? Or, as Qualcomm contends, should royalties be a percentage of the price charged to the customer? more> https://goo.gl/rcESby

Leave a Reply

Your email address will not be published. Required fields are marked *