Broadcom (AVGO), a semiconductor and infrastructure software provider, estimates Apple (AAPL) accounted for approximately 15% of sales in FY20. Not surprisingly, Broadcom warns that top customers like Apple often use their leverage to negotiate better pricing and contract terms.

In its latest 10-K, Broadcom suggests Apple is now asking Broadcom to shield it from a more than $800 million legal judgement:

“For example, in August 2020 judgment was entered against Broadcom and Apple for infringement of certain patents pursuant to which California Institute of Technology was awarded past damages of $270.2 million from Broadcom and $837.8 million from Apple (plus, in each case, interest thereon from the date of the judgment), for which Apple is seeking indemnification from Broadcom. Although we are appealing this judgment, there are no assurances that we will be successful.”

Broadcom believes it has strong grounds for appeal and has not recorded a reserve as a result of the litigation.