Apple Sues Qualcomm For Nearly $1 Billion
Apple has filed a lawsuit against Qualcomm, stating that the company has been ”charging royalties for technologies they have nothing to do with.”
Apple has accused Qualcomm of overcharging for its silicon at least five times more in payments than other companies with whom Apple has agreements combined.
The lawsuit claims that Qualcomm withheld “nearly $1 billion in payments from Apple as retaliation for responding truthfully to law enforcement agencies investigating them.” According to Apple, Qualcomm withheld the rebates due to its discussion with a South Korean antitrust regulator, which has had no good relation with Qualcomm in the past due to patent licensing issues.
Apple’s full statement to CNBC regarding its $1 billion lawsuit against Qualcomm:
“For many years Qualcomm has unfairly insisted on charging royalties for technologies they have nothing to do with. The more Apple innovates with unique features such as TouchID, advanced displays, and cameras, to name just a few, the more money Qualcomm collects for no reason and the more expensive it becomes for Apple to fund these innovations. Qualcomm built its business on older, legacy, standards but reinforces its dominance through exclusionary tactics and excessive royalties. Despite being just one of over a dozen companies who contributed to basic cellular standards, Qualcomm insists on charging Apple at least five times more in payments than all the other cellular patent licensors we have agreements with combined.
To protect this business scheme Qualcomm has taken increasingly radical steps, most recently withholding nearly $1B in payments from Apple as retaliation for responding truthfully to law enforcement agencies investigating them.
Apple believes deeply in innovation and we have always been willing to pay fair and reasonable rates for patents we use. We are extremely disappointed in the way Qualcomm is conducting its business with us and unfortunately after years of disagreement over what constitutes a fair and reasonable royalty we have no choice left but to turn to the courts.”
In response to Apple’s lawsuit, Qualcomm has issued an official statement, citing Apple’s claims baseless. Full statement follows …
“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. Apple has been actively encouraging regulatory attacks on Qualcomm’s business in various jurisdictions around the world, as reflected in the recent KFTC decision and FTC complaint, by misrepresenting facts and withholding information. We welcome the opportunity to have these meritless claims heard in court where we will be entitled to full discovery of Apple’s practices and a robust examination of the merits,” said Don Rosenberg, executive vice president and general counsel, Qualcomm Incorporated.
Apple’s not the only entity suing Qualcomm in the recent; earlier this week, the US Federal Trade Commission (FTC) sued Qualcomm over a dispute related to unfair patent licensing.
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