Qualcomm sues four Apple contract manufacturers

Why Apple and Other Smartphone Makers Are Ganging Up on Qualcomm

Why Apple and Other Smartphone Makers Are Ganging Up on Qualcomm

Apple brought its own separate case against Qualcomm shortly after, suing for roughly $1 billion and alleging the company is "charging royalties for technologies they have nothing to do with" and "withholding almost $1 billion in payments from Apple as retaliation for responding truthfully to law enforcement agencies investigating them".

In April, Qualcomm said in its second-fiscal quarter earnings results that its reported revenue had not been affected by the withheld royalties, as the suppliers continued to report the royalties and acknowledged that the money was still owed.

SAN DIEGO Manufacturers that build Apple's iPhone and iPad are being drawn into an escalating dispute between the tech giant and the chipmaker Qualcomm.

Qualcomm in a statement said that 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.

Ltd., known as Foxconn: Pegatron Corp.; Wistron Corp.; and Compal Electronics - all based in Taiwan but with manufacturing operations in China and elsewhere. "Despite being just one of over a dozen companies that 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". The U.S. Federal Trade Commission sued Qualcomm in January over similar grounds, and Samsung and Intel have filed friend of the court briefs supporting the FTC's case.

"In addition to withholding payments from defendants for Qualcomm royalties, Apple instructed defendants to withhold corresponding royalty payments from Qualcomm", the filing reads.

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The company licenses patents based on the price of the entire device, and it has agreed to provide certain patents under "fair, reasonable and non-discriminatory" terms because they are included in wireless industry standards.

Qualcomm did not disclose the quantum of royalty owed to it by the manufacturers.

Qualcomm's shares were marginally lower at $55.66 in premarket trading. Those contract manufacturers in turn had stopped paying Qualcomm by the same amount.

"Pay for what you take and if you don't want to pay for it, don't take it", he said. The companies make iPhones and iPads for Apple.

The Cupertino, California, company isn't alone in its accusations against Qualcomm.

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