We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Apple (AAPL) - Qualcomm Legal Battle Takes an Ugly Turn
Read MoreHide Full Article
Apple Inc (AAPL - Free Report) and Qualcomm Inc’s (QCOM - Free Report) legal dispute over royalty payments just got nastier. Per Bloomberg, the company has accused Qualcomm of having an “illegal business model” that helps the company to earn more patent money and at the same time stifles innovation.
Apple has referred to the landmark ruling handed in the Impression Products Inc Vs. Lexmark International Inc case recently. In the case, reportedly, Supreme Court had ruled that companies (like Lexmark) can’t have any patent rights once they sell the product, thereby preventing such companies to earn more money for the second time during resale.
Per Reuters, Apple has said that Qualcomm’s licensing practices (making clients ink patent licensing agreements before buying chips) are questionable. This is because not only does Apple pay for the chips but the license agreement also enables Qualcomm to haul a small amount of the selling price of the iPhone in “exchange for supplying the modem chips that let phones connect to cellular data networks.”
Per the recent Lexmark ruling, Qualcomm is entitled to earn money just once – either for the license or for buying the chip, argues Apple. Apple has been reportedly quoted saying “This is precisely the kind of double dipping, extra-reward system that the court’s decision sought to eliminate.”
On the other hand, Qulacomm responded to Apple’s latest allegations by saying “Apple is trying to distract from the fact that it has made misleading statements about the comparative performance of its products, and threatened Qualcomm not to disclose the truth. It simply is untrue that Qualcomm is seeking to collect royalties for Apple innovations that have nothing to do with Qualcomm’s technology.”
The Apple-Qualcomm dispute started in January this year when Qualcomm was slapped with a $1 billion lawsuit related to licensing royalty payments by Apple. In the suit filed in the U.S. District Court for the Southern District of California, Apple accused Qualcomm of overcharging for chips and refusing to pay some $1 billion in promised rebates. Later on, Apple also asked its manufacturing partners Foxconn, Pegatron, Wistron and Compal Electronics to stop paying Qualcomm and agreed to indemnify them if Qualcomm took them to court.
In April, Qualcomm launched a counterattack on Apple by mentioning the value of its invented technologies, their contribution and share in the industry through its licensing program. The filing also elaborated on Apple’s illegal and improper handling of agreements and negotiations with device manufacturers, misleading regulators to attack Qualcomm around the world and not utilizing the full performance of Qualcomm's modem chips in its iPhone 7.
We are unlikely to see an end to this legal dispute in the near term.
In the last one year, shares of the company have registered growth of 51.8% compared with the Zacks categorized Computer Mini industry’s gain of 50.7%.
Stocks to Consider
Some better-ranked stocks in the broader tech space include TiVo Corp and MercadoLibre (MELI - Free Report) . Both sport a Zacks Rank #1 (Strong Buy).
In the trailing four quarters, TiVo and MercadoLibre delivered average positive earnings surprises of 67.56% and 26.74%, respectively.
Zacks' Hidden Trades
While we share many recommendations and ideas with the public, certain moves are hidden from everyone but selected members of our portfolio services. Would you like to peek behind the curtain today and view them?
Starting now, for the next month, I invite you to follow all Zacks' private buys and sells in real time from value to momentum...from stocks under $10 to ETF to option movers...from insider trades to companies that are about to report positive earnings surprises (we've called them with 80%+ accuracy). You can even look inside portfolios so exclusive that they are normally closed to new investors. Click here for Zacks' secret trade>>
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Apple (AAPL) - Qualcomm Legal Battle Takes an Ugly Turn
Apple Inc (AAPL - Free Report) and Qualcomm Inc’s (QCOM - Free Report) legal dispute over royalty payments just got nastier. Per Bloomberg, the company has accused Qualcomm of having an “illegal business model” that helps the company to earn more patent money and at the same time stifles innovation.
Apple has referred to the landmark ruling handed in the Impression Products Inc Vs. Lexmark International Inc case recently. In the case, reportedly, Supreme Court had ruled that companies (like Lexmark) can’t have any patent rights once they sell the product, thereby preventing such companies to earn more money for the second time during resale.
Per Reuters, Apple has said that Qualcomm’s licensing practices (making clients ink patent licensing agreements before buying chips) are questionable. This is because not only does Apple pay for the chips but the license agreement also enables Qualcomm to haul a small amount of the selling price of the iPhone in “exchange for supplying the modem chips that let phones connect to cellular data networks.”
Per the recent Lexmark ruling, Qualcomm is entitled to earn money just once – either for the license or for buying the chip, argues Apple. Apple has been reportedly quoted saying “This is precisely the kind of double dipping, extra-reward system that the court’s decision sought to eliminate.”
On the other hand, Qulacomm responded to Apple’s latest allegations by saying “Apple is trying to distract from the fact that it has made misleading statements about the comparative performance of its products, and threatened Qualcomm not to disclose the truth. It simply is untrue that Qualcomm is seeking to collect royalties for Apple innovations that have nothing to do with Qualcomm’s technology.”
The Apple-Qualcomm dispute started in January this year when Qualcomm was slapped with a $1 billion lawsuit related to licensing royalty payments by Apple. In the suit filed in the U.S. District Court for the Southern District of California, Apple accused Qualcomm of overcharging for chips and refusing to pay some $1 billion in promised rebates. Later on, Apple also asked its manufacturing partners Foxconn, Pegatron, Wistron and Compal Electronics to stop paying Qualcomm and agreed to indemnify them if Qualcomm took them to court.
Apple Inc. Price
Apple Inc. Price | Apple Inc. Quote
In April, Qualcomm launched a counterattack on Apple by mentioning the value of its invented technologies, their contribution and share in the industry through its licensing program. The filing also elaborated on Apple’s illegal and improper handling of agreements and negotiations with device manufacturers, misleading regulators to attack Qualcomm around the world and not utilizing the full performance of Qualcomm's modem chips in its iPhone 7.
We are unlikely to see an end to this legal dispute in the near term.
Zacks Rank & Stock Price Movement
At present, Apple carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
In the last one year, shares of the company have registered growth of 51.8% compared with the Zacks categorized Computer Mini industry’s gain of 50.7%.
Stocks to Consider
Some better-ranked stocks in the broader tech space include TiVo Corp and MercadoLibre (MELI - Free Report) . Both sport a Zacks Rank #1 (Strong Buy).
In the trailing four quarters, TiVo and MercadoLibre delivered average positive earnings surprises of 67.56% and 26.74%, respectively.
Zacks' Hidden Trades
While we share many recommendations and ideas with the public, certain moves are hidden from everyone but selected members of our portfolio services. Would you like to peek behind the curtain today and view them?
Starting now, for the next month, I invite you to follow all Zacks' private buys and sells in real time from value to momentum...from stocks under $10 to ETF to option movers...from insider trades to companies that are about to report positive earnings surprises (we've called them with 80%+ accuracy). You can even look inside portfolios so exclusive that they are normally closed to new investors. Click here for Zacks' secret trade>>