Apple uses Supreme Court decision to escalate war against Qualcomm

“Apple has fired its latest legal salvo at Qualcomm, broadening its multibillion-dollar battle over wireless chip royalties by attacking the validity of the chipmaker’s patents and leaning on a US Supreme Court decision to support its allegation of ‘double-dipping,'” Tim Bradshaw reports for the Financial Times.

“The tech groups have spent recent months raising the legal stakes after Apple in January accused Qualcomm of ‘exclusionary tactics and excessive royalties,’ running into billions of dollars over the past few years,” Bradshaw reports. “In a legal filing on Tuesday, Apple pointed to a ruling by the US Supreme Court to try to bolster its case that Qualcomm is charging too much for access to patents covering cellular and WiFi connectivity in mobile devices. At the end of May, the court found that patent law cannot be used to prevent the resale of Lexmark printer cartridges refilled with toner by other suppliers. ‘A patentee’s decision to sell a product exhausts all of its patent rights in that item, regardless of any restrictions the patentee purports to impose,’ Chief Justice John Roberts wrote in the court’s ruling, reversing a decision by the US Court of Appeals for the Federal Circuit.”

Bradshaw reports, “Apple’s lawyers say the ‘landmark decision’ suggests Qualcomm’s practice of obliging customers that buy its chip modems to also pay a patent royalty — which the US Federal Trade Commission called in its own complaint a ‘no license, no chips’ model — is a ‘violation of US patent law.’ ‘This is precisely the kind of double-dipping, extra-reward system that the Court’s decision in Lexmark forbids,’ Apple argues in its filing.”

Read more in the full article here.

MacDailyNews Take: Greedy Qualcomm’s free ride on Apple’s coattails is inexorably drawing to an end.

Outside of a Microsoft Store, nobody wants more for less than Qualcomm.

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4 Comments

  1. The link at the end of the MDN excerpt is to a paid subscription to the Financial Times. MDN, you should flag any link that leads to a pay portal.

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