At the beginning of this year, it appeared as though Apple would be forced to use Intel’s newly developed 5G modem chips on the first 5G iPhone models expected to be released next year. Apple preferred to use 5G modem chips from Qualcomm, but the two firms were on the outs; the only times the two companies spoke with each other was in court. Ironically, both were just entering the closing arguments stage of a trial with billions at stake when a settlement was announced. Apple paid the chipmaker an unknown sum later reported to be $4.5 billion and received a six-year license (remember Qualcomm’s infamous ”no license, no chips” policy) and a multi-year agreement for chips.  

Intel says Qualcomm’s illegal policies forced it to sell its smartphone modem chip business to Apple at a huge loss

Meanwhile, trade groups that represent the U.S. units of several automobile makers and suppliers have filed documents against Qualcomm’s licensing practices with the ninth circuit court of appeals located in San Francisco. German automobile brake manufacturer Continental AG told the appeals court that it had to give up working with Samsung and MediaTek because of Qualcomm’s licensing practices. Continental claims that Qualcomm and other patent holders refused to license their technology to chipmakers and instead licensed their patents to carmakers who sell vehicles for tens of thousands of dollars (think bigger royalties) and are “less motivated to fight for every dollar.”

The automobile suppliers say that consumers are the ones ultimately hurt by Qualcomm’s licensing policies. “The resulting inefficiency is ultimately borne by consumers in the form of higher prices,” the trade group wrote. The suppliers and other opponents of Qualcomm’s licensing policies are requesting that the original decision by Judge Koh stand.