Apple, allies seek billions in US trial testing Qualcomm's business model

SAN DIEGO: Apple and its allies on Monday will kick off a jury trial against chip supplier Qualcomm in San Diego, alleging that Qualcomm engaged in illegal patent licensing practices and seeking up to US$27 billion in damages.

For Apple, the trial is about the freedom to determine its own technology path for blockbuster products by buying chips without having to pay what it calls a"tax" on its innovations in the form of patent licensing fees to Qualcomm that take a cut of the selling price of its devices. Qualcomm requires device makers to sign a license to its patents before it will supply chips, which it views as a commonsense measure to ensure it does not do business with companies violating its patents.

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