QCOM Stock Analysis: Qualcomm And Apple Will Likely Settle Their Patents Licensing Dispute

motek 1The article was written by Motek Moyen Research Seeking Alpha’s #1 Writer on Long Ideas and #2 in Technology  – Senior Analyst at I Know First

QCOM Stock Analysis

  • Apple sued Qualcomm last January for allegedly overcharging on patent licensing fees. Apple also stopped paying royalty fees to Qualcomm earlier this year.
  • In retaliation, Qualcomm sued in May four contract manufacturer partners of Apple, Foxconn, Compal, Pegatron, and Wistron. Qualcomm has also sued Apple in the U.S. federal court and the ITC.
  • The ITC or the U.S. International Trade Commission announced last August 8 that it will proceed with the patent infringement suit filed by Qualcomm against Apple.
  • Apple settled its patent dispute with Nokia. Nokia filed suit earlier this year aiming to ban sales of iPhones in key countries. Apple made an upfront payment of $2 billion to settle with Nokia.
  • I expect Apple to also settle out of court with Qualcomm before 2017 ends. It is always cheaper to pay patents licensing fees than risk a court-ordered import ban on iPhones.

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