“Manufacturers that build Apple’s iPhone and iPad are being drawn in to an escalating dispute between the tech giant and the chipmaker Qualcomm,” The Associated press reports.
“Qualcomm said Wednesday that it has filed a breach of contract complaint against Apple manufacturers who it says have been pressured by Apple not to pay royalties to Qualcomm for technology that it says it owns,” AP reports. “Qualcomm Inc. has filed suit against FIH Mobile Ltd. and Hon Hai Precision Industry Co., Pegatron Corp., Wistron Corp. and Compal Electronics Inc. It has filed a separate claim against Cupertino, California-based Apple for interfering with the license agreements between Qualcomm and the manufacturers.”
Full article here.
Qualcomm’s press release, verbatim:
Qualcomm Incorporated (NASDAQ:QCOM) today filed a complaint in the United States District Court for the Southern District of California against FIH Mobile Ltd. and Hon Hai Precision Industry Co., Ltd., (together known as Foxconn), Pegatron Corporation, Wistron Corporation, and Compal Electronics, Inc., the four manufacturers of all Apple iPhones and iPads sold worldwide, for breaching their license agreements and other commitments with Qualcomm and refusing to pay for use of Qualcomm’s licensed technologies. Qualcomm seeks an order that would require the defendants to comply with their long-standing contractual obligations to Qualcomm, as well as declaratory relief and damages.
Despite a long history of consistently paying royalties under their license agreements with Qualcomm, the manufacturers now are refusing to pay royalties on the Apple products they produce. While not disputing their contractual obligations to pay for the use of Qualcomm’s inventions, the manufacturers say they must follow Apple’s instructions not to pay. The license agreements with the manufacturers in many cases were entered into before Apple sold its first iPhone and Apple is not a party to the agreements. Further, the defendants are continuing to pay Qualcomm royalties for use of Qualcomm’s technology in non-Apple products, under the very same agreements that apply to the Apple products. Qualcomm has already filed a separate claim against Apple for its unlawful interference with the license agreements between Qualcomm and these manufacturers.
“It is unfortunate that we must take this action against these long-time licensees to enforce our agreements, but we cannot allow these manufacturers and Apple to use our valuable intellectual property without paying the fair and reasonable royalties to which they have agreed,” said Don Rosenberg, executive vice president and general counsel of Qualcomm. “As Apple continues to collect billions of dollars from consumer sales of its Qualcomm-enabled products, it is using its market power as the wealthiest company in the world to try to coerce unfair and unreasonable license terms from Qualcomm in its global attack on the company. Our license agreements with Apple’s manufacturers remain valid and enforceable. The manufacturers must continue to live up to their obligations under these agreements and Apple should immediately cease its tortious interference.”
Source: Qualcomm Incorporated
MacDailyNews Take: Blah, blah, blah.
The jig is up, Qualcomm.
Qualcomm’s FRAND abuse must not stand. Qualcomm’s licensing scam — charging a percentage of the total cost of all components in the phone, even non-Qualcomm components — is unreasonable, illogical, and irrational.
SEE ALSO:
FTC says Qualcomm is a monopoly; Samsung agrees – May 13, 2017
What seems reasonable to Qualcomm isn’t to Apple: Royalty dispute ultimately affects iPhone prices – May 8, 2017
Qualcomm to seek U.S. ITC import ban for Apple iPhones – May 3, 2017
Qualcomm slashes profit forecasts as Apple ceases paying iPhone royalties – April 28, 2017
BlackBerry awarded $815 million in arbitration with Qualcomm over royalty overpayments – April 13, 2017
Qualcomm countersues Apple – April 11, 2017
Qualcomm wants FTC to drop their antitrust suit, but it doesn’t mater because Apple’s isn’t going anywhere – April 5, 2017
Apple’s dispute with Qualcomm could last two years – March 3, 2017
Apple widens global patent war, files lawsuit against Qualcomm in the United Kingdom – March 2, 2017
Apple may have paid Qualcomm $40 per iPhone; accounting for 1/3rd of Qualcomm’s revenue – February 10, 2017
Conservative groups ask President Trump to terminate FCC lawsuit over Qualcomm patent licensing – January 27, 2016
Qualcomm CEO fires back at Apple: Bring it on – January 26, 2017
Apple sues Qualcomm in China seeking 1 billion yuan – January 25, 2017
Qualcomm comments on Apple’s lawsuits in China – January 25, 2017
Apple’s rebellion against the ‘Qualcomm Tax’ – January 24, 2017
Despite lawsuit, Qualcomm wants to keep doing business – January 24, 2017
Why Apple, the FTC, and others are attacking Qualcomm’s royalty model – January 24, 2017
Here are the most damning parts of Apple’s blockbuster lawsuit against Qualcomm – January 23, 2017
Apple’s legal assault on Qualcomm part of iPhone margin grab – January 23, 2017
Qualcomm says Apple’s claims are ‘baseless’ in response to Cupertino’s $1 billion lawsuit – January 21, 2017
Apple sues Qualcomm for $1 billion over onerous licensing practices – January 20, 2017
Qualcomm exec says FTC ‘rushed’ antitrust lawsuit before President-elect Trump’s inauguration – January 19, 2017
FTC alleges Qualcomm forced Apple into iPhone LTE chip deals – January 18, 2017
FTC charges Qualcomm with monopolizing key smartphone chip; alleges extracted exclusivity from Apple in exchange for reduced patent royalties – January 17, 2017
So Apple is rebelling against Qualcom for having to pay it IP licensing for Part A owned by someone else?
This means that Apple has to pay twice to two different IP claimants for one IP?
Capone would have loved it.
No dingleberry, that’s not what it means.
This company needs to change its ways or be stamped out and as soon as possible.
I hope they get stomped out like the bugs on the windshield with their head up their ass
MDN, you forgot MicroSlothian.
Qualcomm:
Desperate to defend their crime by way of bluster and throwing money at lawyers. Sad really. I hope they survive themselves.