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Apple Sues Qualcomm Over Royalties, Qualcomm Bites Back

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Jan 21, 2017, 8:59 AM   by Eric M. Zeman
updated Jan 21, 2017, 11:40 AM

Apple has filed a lawsuit against partner Qualcomm, alleging the mobile chipmaker used its monopoly power to push for "onerous, unreasonable and costly" licensing terms. Moreover, Apple says Qualcomm prevented it from seeking chips from other suppliers between 2011 and 2016. Apple uses Qualcomm's baseband chips in the iPhone and iPad. Apple is seeking $1 billion in rebate payments that it says Qualcomm has withheld since Apple met with Korea's fair trade regulatory body last year. Apple's lawsuit arrives just days after the U.S. Federal Trade Commission sued Qualcomm over what it called aggressive and unfair business practices. The government, in particular, said Qualcomm had taken advantage of Apple and others with its licensing terms. Qualcomm denied the allegations. "While we are still in the process of reviewing the complaint in detail, it is quite clear that Apple's claims are baseless. Apple has intentionally mischaracterized our agreements and negotiations, as well as the enormity and value of the technology we have invented, contributed and shared with all mobile device makers through our licensing program," said Don Rosenberg, executive vice president and general counsel, Qualcomm. In addition to the FTC complaint, Qualcomm was recently sued by the Korean government over similar claims.

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