Apple unlikely to settle with Qualcomm in $1bn royalties case, says CEO Tim Cook

Apple CEO Tim Cook not in the mood for an out-of-court settlement with Qualcomm

Apple has no choice but to sue semiconductor company Qualcomm, claims Apple CEO Tim Cook, because it is unlikely that the two companies will be able to reach an amicable settlement in their dispute around the table.

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

Cook said he maintained this view, but given the growing frustration at the company over how Qualcomm was acting he felt that 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 for us to innovate."

Cook went on to liken this to being charged more for a sofa depending on the house it would be going into. "Just from our point of view, this doesn't make sense, and we don't believe it will pass muster in the courts," said Cook.

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

Cook said that, in light of all this, he thinks it unlikely that 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."