Apple CEO Tim Cook compares $1bn Qualcomm case to being overcharged for a sofa

Tim Cook says settlement between firms unlikely

Apple CEO Tim Cook has said that the firm had no choice but to sue Qualcomm for $1bn, believing that it is unlikely a settlement outside the courts will be reached.

Speaking during an earnings call to discuss the firm's strong quarterly results, Cook was asked why he had initiated legal proceedings against the firm, given that in 2012 he said he ‘hated litigation'.

Cook said he maintained this view, but given the growing frustration at the firm over how Qualcomm was acting felt he had no choice but to take legal action.

"They were insisting on charging royalties for technologies that they had nothing to do with," he said.

"And so we were in a situation where the more we innovated with unique features like Touch ID or advanced displays or cameras, just to name a few, the more money Qualcomm would collect for no reason and the more expensive it would be therefore for us to innovate."

Cook went on to liken this to being charged more for a sofa just because of the different house it would be going into.

"So it's somewhat like buying a sofa, and you charge somebody a different price depending upon the price of the house that it goes into. Just from our point of view, this doesn't make sense, and we don't believe it will pass muster in the courts."

He noted too that Apple believes Qualcomm has withheld $1 billion in payments from Apple, so this was also forcing its hands.

Cook said in light of all this he thinks it unlikely a settlement out of court will be reached.

"I don't like litigation. And so if there's another way, then that would be great, but at this point I don't see it. I fully expect at this point in time that it will take some time, but in the end I think common sense will prevail and the courts will see it for what it is."

Qualcomm has already hit back at Apple's claims, with Don Rosenberg, general counsel for the firm saying last month that "it is quite clear that Apple's claims are baseless".

"Apple has been actively encouraging regulatory attacks on Qualcomm's business in various jurisdictions around the world, as reflected in the recent KFTC decision and FTC complaint, by misrepresenting facts and withholding information," he said.

"We welcome the opportunity to have these meritless claims heard in court where we will be entitled to full discovery of Apple's practices and a robust examination of the merits."