Qualcomm puts value of patent portfolio on the line as Apple suit goes to trial

Bloomberg

Qualcomm is putting the value of its patent portfolio on the line in a California courtroom in its hometown to try to make Apple Inc. pay for using technology
the chipmaker credits for the iPhone’s commercial success.
It’s the first time a US jury will have a say in the two-year, sprawling global battle between the tech giants. Qualcomm alleges that Apple infringed patents related to technology for graphics processing and battery power conservation, which the San Diego-based company says improve the efficiency and reduce the cost of smartphones.
A major damages award by jurors would help Qualcomm undermine Apple’s claims that the chipmaker overcharges for its patent portfolio and may give the iPhone and iPad maker an incentive to negotiate a comprehensive settlement to their dispute. The trial started in federal court in San Diego and is scheduled to take two weeks.
“Qualcomm could really use a win to bolster the view that its robust patent portfolio is entitled to protection,” said Bloomberg Intelligence analyst Tamlin Bason. But he added that, because Qualcomm is unlikely to get a court order banning sales of infringing iPhone models, the chipmaker may not gain much leverage against Apple if it wins the trial.
Even if it loses, Apple can shrug off virtually any damage award, according to Bason, but a verdict for the iPhone maker would weaken Qualcomm’s hand. “We have a dispute,” Qualcomm attorney David Nelson told the jury in his opening statement. “We can’t resolve it.”
According to court filings, Qualcomm seeks $1.41 per infringing iPhone sold in the US since July 6, 2017, when it filed the lawsuit. Based on an estimated 91 million units Apple sold in the US in its 2018 fiscal year, the damages could amount to as much as $223 million for iPhones sold through the end of this month. Apple’s lawyer, Juanita Brooks, told jurors in her opening statement that it was Qualcomm that stole technological ideas from Apple, not the other way around, and that Apple had a friendly relationship with Qualcomm until
Apple began using Intel Corp. chips in the iPhone 7 and 7 Plus models in 2016.