Cases & Deals

Qualcomm achieves global settlement with Apple

Client(s) Qualcomm Incorporated

Jones Day represented Qualcomm Incorporated against Apple Inc. and four contract manufacturers of Apple devices in a lawsuit involving claims for breach of contract and violations of federal antitrust laws and the California Unfair Competition Law. Qualcomm claimed that Apple breached agreements between the parties, tortiously interfered with Qualcomm's agreements with Apple's contract manufacturers, and violated the California Unfair Competition Law based on Apple's threats to prevent Qualcomm from promoting the superior performance of its own baseband processor chipsets. Apple claimed that certain Qualcomm patent rights were exhausted, that certain royalties were excessive, that Qualcomm used its market position to impose contractual obligations on Apple, and that Qualcomm tied the sale of chipsets to the licensing of patents. Qualcomm sued the contract manufacturers for breach of contract for ceasing the payment of royalties to Qualcomm for iPhones and other devices that the manufacturers produce for Apple. Jones Day served as co-counsel for pretrial and trial proceedings.

The lawsuit settled in April 2019 when Qualcomm and Apple reached a global settlement of all litigation between the companies worldwide. The settlement included payment by Apple to Qualcomm, a six-year license agreement with a two-year option to extend, and a multiyear chipset supply agreement.

Apple Inc. v. Qualcomm Inc., No. 3-17-cv-00108; Qualcomm Incorporated v. Compal Electronics Inc. et al, No. 3-17-cv-01010 (S.D. Cal.)