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One of the penalties for refusing to participate in politics is that you end up being governed by your inferiors. -- Plato (429-347 BC)

Thursday, September 27, 2018

Apple’s Latest Heist: Stealing Qualcomm’s IP – And Handing It To Intel

by Seton Motley, Contributing Author: Just on Tuesday we wrote in opposition to an op-ed – in which the author asserted protecting Intellectual Property (IP) limits one’s ability to move from job to job:

“(T)hose (IP) wars ‘challenge the right and freedom to leave jobs, compete with incumbent companies, control ideas and innovate.’ What Lobel calls ‘the criminalization of employment mobility’ is a serious problem, and this article offers some first steps to protect yourself from its grasp.”

This is, of course, absurd:

“The author finds it offensive that IP creators…want to protect their IP when their employees leave their employ. Just as a tractor manufacturer doesn’t want an outgoing employee driving off the lot with an armada of unpaid-for threshers.

“Only the employee leaving with IP – does so with content FAR more valuable then the threshers. If you steal eight threshers – you have eight threshers. But the IP you steal – is nigh always infinitely replicate-able. Rendering your theft – endless…and endlessly valuable.”

Thinking a person can leave a gig – and hand that gig’s IP to his next employer – is obnoxiously absurd.

But what’s orders-of-magnitude worse than an employee stealing IP? A $1.1 trillion company stealing IP:

Qualcomm Says Apple Stole Software to Improve Intel Chips:

“Qualcomm Inc. added yet another layer to its ongoing legal battle with Apple Inc. by accusing the iPhone maker of stealing software and tools to help improve chips from rival Intel Corp.”

Get that last phrase? Apple wanted to “improve Intel chips” – because Intel’s chips have been dramatically inferior to Qualcomm’s chips. Because Intel’s IP – has been dramatically inferior to Qualcomm’s IP.

Which is why Apple has been using Qualcomm’s IP – for years. Because Qualcomm’s superior IP – made for superior chips.

Why do I believe Apple is stealing Qualcomm’s IP and handing it to Qualcomm? Because in February 2017, Apple stopped paying Qualcomm for Qualcomm’s IP – per the mandates of the IP contracts Apple and Qualcomm together signed.

Behavioral past – is prologue.

All of this is why “Qualcomm added yet another layer to its ongoing legal battle with Apple.” Qualcomm was first forced to sue the sticky-fingered Apple – quite a while ago.

Apple’s attempted defense of its MASSIVE theft – they sold 41 million iPhones in just Q3 of 2017would be laughable were it not so dangerous:

“Apple started the legal fight by accusing its former supplier of illegally using dominance of the market for phone processors and modems to force it to pay unfair technology licensing fees.”

Yes, you clowns. Qualcomm dominates the market – because their IP is indubitably better than others. Including Intel’s.

Apple obviously thought so – which is why they used Qualcomm’s IP for years.

Qualcomm’s response to this absurdity – is quite reasonable:

“Qualcomm has responded by saying Apple is stealing its intellectual property and the legal assault is really a commercial dispute aimed at securing lower prices to increase profitability.”

How incredibly cheap is Apple being?

The iPhone X I currently possess – I purchased for a soul-crushing $1,000. The amount of money Apple was contractually obligated to pay Qualcomm for my iPhone (and didn’t)? Less than $20.

Less than 2% of the retail price – for all the incredible Qualcomm inventions. Without which the iPhone – is basically a skinny rotary phone.

What a conglomeration of cheapskate thieves Apple is.

It’s now been more than a year-and-a-half of Apple trafficking in stolen goods. The entire lifespans of the iPhone 8 and X – have existed within the confines of Apple’s ongoing, rolling massive theft.

Apple has sold hundreds of millions of very expensive items containing Qualcomm’s IP – without paying for Qualcomm’s IP. Again – in violation of the contracts Apple itself signed.

Which brings us to Apple’s latest products – and the latest massive theft:

“Apple now exclusively uses Intel modems, chips that help connect smartphones to cellular networks to access data and voice, in the latest versions of the iPhone.

“Qualcomm says that Apple helped Intel engineers to fine-tune the modems to improve performance using Qualcomm’s software and tools. That’s in breach of the terms of the licenses of that software – provided to Apple when the company used Qualcomm modems – and is the basis for damage claims.”

Apple handing Qualcomm’s IP to Intel is “in breach of the terms of the licenses of that software.” But Apple obviously cares not about the contracts they themselves signed – and the laws behind them.

After all, this is just and yet another instance of Apple massively violating said license terms:

“‘Apple has engaged in a years-long campaign of false promises, stealth, and subterfuge designed to steal Qualcomm’s confidential information and trade secrets for the purpose of improving the performance and accelerating the time to market of lower-quality modem chips, including those developed by Intel,’ Qualcomm said in a court filing Tuesday. ‘Apple used that stolen technology to divert Qualcomm’s Apple-based business to Intel.’”

For its part, Apple sounds not at all like a trillion company seriously considering the gravity of their massive theft. Which is severely damaging – and indeed threatening the very existence of – the IP marketplace that made their massive success possible.

Apple sounds like every anti-IP Left-Libertarian fool – of whom you can’t swing a dead digital cat without hitting several on the Web.

In other words – they sound like short-term-thinking three-year-olds. Who eat all their Halloween candy right now – and steal and eat yours while they’re at it:

“‘Qualcomm’s illegal business practices are harming Apple and the entire industry. They supply us with a single connectivity component, but for years have been demanding a percentage of the total cost of our products – effectively taxing Apple’s innovation….’”

But very, very soon these Apple three-year-old children will realize – there ain’t no more candy.

Apple can lead Intel to water – but they can’t make them think.

Intel is good enough to replicate Qualcomm. But they have for years clearly demonstrated – they aren’t good enough to create like Qualcomm.

So when Apple – in very short order – needs the next great IP thing…they will once and yet again find Intel lacking.

Just as they did – for years. Which is why they used Qualcomm’s IP – for years.

And then Apple will throw yet another three-year-old tantrum. Just as they are doing now.
----------------
Seton Motley is the President of Less Government and he contributes to ARRA News Service. Please feel free to follow him him on Twitter   /   Facebook.

Tags: Seton Motley, Less Government, Apple’s Latest Heist, Stealing Qualcomm’s IP, Handing It To Intel To share or post to your site, click on "Post Link". Please mention / link to the ARRA News Service and "Like" Facebook Page - Thanks!
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