Qualcomm Owes Apple Almost $1 Billion in Rebate Payments According to New Court Ruling

Qualcomm owes Apple close to $1 billion in rebate payments a U.S. District Judge for the Southern District of California said in a preliminary ruling today, siding with Apple in the ongoing Apple vs. Qualcomm legal battle.

Qualcomm, ruled the judge, is obligated to make the rebate payments to Apple as they were part of a business agreement between the two companies.

qualcomm iphone 7
Today's ruling is unrelated to the patent trial that wrapped up this week and instead pertains to Apple's rebate lawsuit against Qualcomm. Two years ago, Apple sued Qualcomm and said that the chip company had been refusing to pay patent royalty rebates mandated by the agreement.

As explained by Reuters, Apple's suppliers would pay Qualcomm royalties to use Qualcomm's patented technology in iPhones, which Apple would reimburse. Qualcomm and Apple had an agreement that said Qualcomm would pay Apple a rebate on these iPhone patent payments if Apple did not attack it in court or with regulators.

Qualcomm said that it stopped making the required royalty payments to Apple because Apple broke the agreement by urging smartphone makers to complain to regulators and by making "false" statements to the Korean Fair Trade Commission, which was, at the time, investigating Qualcomm for antitrust allegations. Apple in turn said that it was providing lawful responses to Korean regulators as part of the ongoing investigation.

Apple was in the right according to the preliminary ruling, and Qualcomm should have continued to make the royalty payments. In a statement to Reuters, Qualcomm commented on the judge's decision.

"Although the Court today did not view Apple's conduct as a breach of Apple's promises to Qualcomm in the 2013 Business Cooperation and Patent Agreement, the exposure of Apple's role in these events is a welcome development."

Today's ruling was preliminary, and it won't be finalized until the two companies meet in court for the rebate lawsuit, which is set to begin next month. Reuters says that it is unlikely Qualcomm will make a new payment to Apple as Apple's contract factories have already withheld nearly $1 billion in payments to Qualcomm as a way for Apple to recoup its money.

Apple and Qualcomm have been embroiled in an increasingly bitter legal battle for more than two years now, with the fighting spanning multiple countries and covering everything from royalty payments to patent infringement. Right now, Apple and Qualcomm are awaiting the U.S. trial for the rebate dispute and the results of the recent patent infringement trial.

Popular Stories

Apple iPhone 16e Feature

Apple Announces iPhone 16e With A18 Chip and Apple Intelligence, Pricing Starts at $599

Wednesday February 19, 2025 8:02 am PST by
Apple today introduced the iPhone 16e, its newest entry-level smartphone. The device succeeds the third-generation iPhone SE, which has now been discontinued. The iPhone 16e features a larger 6.1-inch OLED display, up from a 4.7-inch LCD on the iPhone SE. The display has a notch for Face ID, and this means that Apple no longer sells any iPhones with a Touch ID fingerprint button, marking the ...
iphone 17 pro asherdipps

iPhone 17 Pro Models Rumored to Feature Aluminum Frame Instead of Titanium Frame

Tuesday February 18, 2025 12:02 pm PST by
Over the years, Apple has switched from an aluminum frame to a stainless steel frame to a titanium frame for its highest-end iPhones. And now, it has been rumored that Apple will go back to using aluminum for three out of four iPhone 17 models. In an investor note with research firm GF Securities, obtained by MacRumors this week, Apple supply chain analyst Jeff Pu said the iPhone 17, iPhone...
apple launch feb 2025 alt

Here Are the New Apple Products We're Still Expecting This Spring

Thursday February 20, 2025 5:06 am PST by
Now that Apple has announced its new more affordable iPhone 16e, our thoughts turn to what else we are expecting from the company this spring. There are three product categories that we are definitely expecting to get upgraded before spring has ended. Keep reading to learn what they are. If we're lucky, Apple might make a surprise announcement about a completely new product category. M4...
Generic iOS 18

Here's When Apple Will Release iOS 18.4

Wednesday February 19, 2025 11:38 am PST by
Following the launch of the iPhone 16e, Apple updated its iOS 18, iPadOS 18, and macOS Sequoia pages to give a narrower timeline on when the next updates are set to launch. All three pages now state that new Apple Intelligence features and languages will launch in early April, an update from the more broader April timeframe that Apple provided before. The next major point updates will be iOS ...
apple launch feb 2025

Tim Cook Teases an 'Apple Launch' Next Wednesday

Thursday February 13, 2025 8:07 am PST by
In a social media post today, Apple CEO Tim Cook teased an upcoming "launch" of some kind scheduled for Wednesday, February 19. "Get ready to meet the newest member of the family," he said, with an #AppleLaunch hashtag. The post includes a short video with an animated Apple logo inside a circle. Cook did not provide an exact time for the launch, or share any other specific details, so...
prioritize notifications ios 18 4

Everything New in iOS 18.4 Beta 1

Friday February 21, 2025 1:08 pm PST by
Apple finally released the first beta of iOS 18.4 to developers for testing purposes, and while the beta is lacking some of the Apple Intelligence features we were hoping for, there are some notable new additions. Subscribe to the MacRumors YouTube channel for more videos. Priority Notifications - Apple Intelligence There is a new Priority Notifications feature that can show you your most...
apple c1

Apple Unveils 'C1' as First Custom Cellular Modem

Wednesday February 19, 2025 8:08 am PST by
Apple today announced its first custom cellular modem with the name "C1," debuting in the all-new iPhone 16e. The new modem contributes to the iPhone 16e's power efficiency, giving it the longest battery life of any iPhone with a 6.1-inch display, such as the iPhone 15 and iPhone 16. Expanding the benefits of Apple silicon, C1 is the first modem designed by Apple and the most...
iPhone 16e Feature

Apple Denies Speculation Surrounding iPhone 16e's Lack of MagSafe

Friday February 21, 2025 8:01 am PST by
Apple has confirmed that its custom-designed C1 modem in the iPhone 16e has nothing to do with the device's lack of MagSafe support, according to Macworld. Following the launch of the iPhone 16e, there was some speculation online about how MagSafe magnets might have interfered with the C1 modem's cellular connectivity performance, and this was considered to be a potential reason for the...

Top Rated Comments

ke-iron Avatar
78 months ago
Omg I laughed out loud when I read this. Qualcomm got what was coming to them, those bullies.
Score: 25 Votes (Like | Disagree)
catportal Avatar
78 months ago
arm chair lawyers with 0 clients incoming
Score: 14 Votes (Like | Disagree)
cmaier Avatar
78 months ago
Is anyone surprised by this?

I mean, besides all the “legal experts” that swore up and down that Qualcomm was in the right?
Agreed. I am amazed by all the armchair lawyers that state legal principles that simply don’t exist, simply because they are looking for another reason to bash Apple.
Score: 12 Votes (Like | Disagree)
DrJohnnyN Avatar
78 months ago
What a victory.
Score: 10 Votes (Like | Disagree)
69Mustang Avatar
78 months ago
Is anyone surprised by this?

I mean, besides all the “legal experts” that swore up and down that Qualcomm was in the right?
To be fair to all those "legal experts", they were referencing the Qualcomm v Apple lawsuits. This judgement regarding the rebate payment is a separate issue.

So is anyone surprised by this? I'd say yes we are since, and I'm just guessing here, most of us had no idea the rebate payment was at issue. Judging by your comment, you didn't know either.:p:D
Score: 8 Votes (Like | Disagree)
Kabeyun Avatar
78 months ago
The only people that really suffer is us with Intel modems.
Intel modems, at least in current gen iPhones, are about as good as Qcom ('https://9to5mac.com/2018/10/01/iphone-xs-lte-performance-tests/'). iPhone XS & XSmax support Intel 4x4 MIMO and are basically on parity with Qcom modems.
Score: 8 Votes (Like | Disagree)