Chip makers (Qualcomm and Intel, for instance) and Smart Phone manufacturers (Apple andSamsung, for instance) belong to two oligopoly markets. However, these markets are connected because smart phones cannot work without chips. In 2017 we have seen a complex battle over patents and how much license fees should be between Apple and Qualcomm, the largest players in each market. They were fighting with lawsuits in the US, UK and China. Apple ended the litigation withQualcomm in 2019 and agreed to buy QualcommSnapdragon chipsbecause Intel-Apple were not able to develop 5G chips, Samsung and Waweialready have it, and Apple found itself cornered without 5G chips.

However, the discussion of license fee models is still relevant.Read this Reuters' article from 2017 about the license fee model supported byQualcomm, Nokia andEricsson, and the license fee model that Apple, Google, Mercedes, and VW would like to have:

https://www.reuters.com/article/legal-uk-eu-technology-patents/apple-faces-down-qualcomm-ericsson-over-eu-patent-fees-idUSKCN1C71EO

1. Show with an example how these two license fee models are different.

2. As a consumer of final products and not chips, what model favors you? Why?