Apple is preparing for a $7 billion court battle with Qualcomm, not in settlement talks

  • Apple sued Qualcomm in federal court in San Diego, alleging that the chip company's practice of taking a cut of the selling price of phones as a patent license fee was illegal.
  • Qualcomm denies the claims and alleges that Apple owes it $7 billion in unpaid royalties.
  • Qualcomm CEO Steve Mollenkopf has said the company expects an out-of-court settlement.
Apple Inc. CEO Tim Cook attends China Development Forum (CDF) 2018 at the Diaoyutai State Guesthouse on March 24, 2018 in Beijing, China. China Development Forum (CDF) 2018 is hosted by the Development Research Center of the State Council of China on March 24-26 in Beijing. 
Visual China Group | Getty Images
Apple Inc. CEO Tim Cook attends China Development Forum (CDF) 2018 at the Diaoyutai State Guesthouse on March 24, 2018 in Beijing, China. China Development Forum (CDF) 2018 is hosted by the Development Research Center of the State Council of China on March 24-26 in Beijing. 

Apple is not in talks to settle its $7 billion legal dispute with mobile chip maker Qualcomm, a person familiar with the matter tells CNBC.

Reuters earlier reported on Wednesday that Apple was preparing for trial.

"There is absolutely no meaningful discussion taking place between us and Qualcomm, and there is no settlement in sight," a person familiar with the matter told Reuters. "We are gearing up for trial."

In the past, Apple used Qualcomm's modem chips in its flagship iPhone models to help them connect to wireless data networks. But early last year, Apple sued Qualcomm in federal court in San Diego, alleging that the chip company's practice of taking a cut of the selling price of phones as a patent license fee was illegal.

Qualcomm denied the claims and has alleged that Apple owes it $7 billion in unpaid royalties.

The case is to go to trial early next year and has spawned related legal actions in other courts around the world. Qualcomm CEO Steve Mollenkopf has said the company expects an out-of-court settlement.

— Reuters contributed to this report.