Qualcomm Ramps Up Apple Struggle, Sues iPhone Makers

Qualcomm on Wednesday filed swimsuit towards Apple system producers Foxconn, Pegatron, Wistron, and Compal Electronics for refusing to pay their licensing charges.

iPhone 6s Line at Apple Store

The combat between Apple and Samsung is getting uglier.

Qualcomm on Wednesday filed swimsuit towards Apple system producers Foxconn, Pegatron, Wistron, and Compal Electronics — the businesses accountable for iPhone and iPad meeting — for refusing to pay their licensing charges. The chipmaker says these 4 firms have “a protracted historical past of persistently paying royalties” however at the moment are refusing to pay licensing charges on the Apple merchandise they produce at Cupertino’s request.

“Qualcomm seeks an order that may require the defendants to adjust to their long-standing contractual obligations to Qualcomm, in addition to declaratory reduction and damages,” the corporate mentioned in a news release. “Whereas not disputing their contractual obligations to pay for using Qualcomm’s innovations, the producers say they have to observe Apple’s directions to not pay.”

Apple didn’t instantly reply to PCMag’s request for remark.

Qualcomm mentioned its licensing agreements with the aforementioned producers date again to earlier than Apple even offered its first iPhone — and that Apple is not even a celebration in these contracts. The producers, in the meantime, are nonetheless paying Qualcomm royalties for using its expertise in non-Apple merchandise.

“It’s unlucky that we should take this motion towards these long-time licensees to implement our agreements, however we can not enable these producers and Apple to make use of our invaluable mental property with out paying the honest and affordable royalties to which they’ve agreed,” Qualcomm’s Govt Vice President and Common Counsel Don Rosenberg mentioned in a press release. “As Apple continues to gather billions of from shopper gross sales of its Qualcomm-enabled merchandise, it’s utilizing its market energy because the wealthiest firm on the planet to attempt to coerce unfair and unreasonable license phrases from Qualcomm in its international assault on the corporate.”

He went on to say that “the producers should proceed to dwell as much as their obligations beneath these agreements and Apple ought to instantly stop its tortious interference.”

The problem dates again January when Apple, alleging extortion, sued Qualcomm for $1 billion. Apple says Qualcomm withheld contractually obligated funds in retaliation for Apple’s cooperation with a Korean investigation into its enterprise practices. That investigation ended with the Korean antitrust company levying a record $854 million fine towards Qualcomm in December.

Qualcomm in April countersued Apple, claiming the iPhone maker breached and mischaracterized agreements and negotiations between the 2 firms. Apple since final month has been withholding payments to its producers for the royalties they owe beneath their licenses with Qualcomm.