Apple Expands Lawsuit Against Qualcomm, Says License Agreements Invalid

Back in January, Apple sued Qualcomm for allegedly withholding $1 billion in rebates because it complied with Korean regulators investigating Qualcomm. Apple argues that while Qualcomm’s role in helping create better transmission of data and phone calls is undeniable, the modern smartphone goes beyond that in its capabilities.

It’s Qualcomm vs. the world in the most complex, convoluted and far-reaching patent licensing conflict in the history of mobile tech-related legal squabbles of this nature, but even as the semiconductor giant needs to pay BlackBerry $940 million, its biggest concern remains Apple.

“This is precisely the kind of double-dipping, extra-reward system that the court’s decision ruled against”, argues Apple, “this one reward is either a license fee or the sale price, not both”. Apple also aksed the court to stop lawsuits against four of its suppliers, including Foxconn, that actually buy the chips from Qualcomm and manufacture the iPhone devices.

But Apple concluded: “By tying together the markets for chipsets and licences to technology in cellular standards, Qualcomm illegally enhances and strengthens its monopoly in each market and eliminates competition”.

Apple found “continuing-and mounting-evidence of Qualcomm’s perpetuation of an illegal business model that burdens innovation“, according to the filing.

In a filing to the Supreme Court, Qualcomm sought to distance its licensing practices from the issues before the high court, which involved the ability to resell used printer cartridges.

“Apple is trying to distract from the fact that it has made misleading statements about the comparative performance of its products, and threatened Qualcomm not to disclose the truth”, Qualcomm executive VP and general counsel Don Rosenberg said.

“The per-device royalty Qualcomm charges Apple’s contract manufacturers for the right to use our licensed technologies in the iPhone is less than what Apple charges for a single wall plug”, the statement reads. Qualcomm says, “We intend to vigorously defend our business model, and pursue our right to protect and receive fair value for our technological contributions to the industry”.

While we share many recommendations and ideas with the public, certain moves are hidden from everyone but selected members of our portfolio services.

Reuters is reporting today that they’ve seen a new brief that Apple filed filed with the court.

Want the latest recommendations from Zacks Investment Research?

Leave a Reply

Your email address will not be published. Required fields are marked *