Apple Inc and its allies on Monday will kick off a jury trial against chip supplier Qualcomm Inc in San Diego, alleging that Qualcomm engaged in illegal patent licensing practices and seeking up to US$27 billion in damages.
The trial before Judge Gonzalo Curiel will play out on Qualcomm’s home turf of San Diego, where for decades the city’s National Football League team played in Qualcomm Stadium and nearly every business district hosts the mobile chip firm’s logo. Licensing generates most of Qualcomm profits. The model propelled Qualcomm from a small contract research and development shop when founded in 1985 to a global chip powerhouse important enough to U.S. national security that President Donald Trump personally intervened to prevent a hostile takeover of the company last year.
Apple and allies are asking for an end to that practice and a refund of about US$9 billion — an amount that could be tripled if a jury finds in Apple’s favour for antitrust allegations — for contract factories such as Hon Hai Precision Industry Co Ltd’s Foxconn, who paid the royalties and were reimbursed by Apple. Apple alleges the practices kept rivals like Intel Corp out of the market for years.