Qualcomm sues Apple over underplaying performance of its chips

In its suit Apple also alleged that "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".

The company has also claimed that Apple's iPhone empire hinged on Qualcomm technology.

The Qualcomm vs Apple legal squabble has entered another round. The company also accuses Apple of withholding payments that are part of a previously agreed upon relationship for high-speed technology.

In its own lawsuit against Qualcomm, Apple alleges that Qualcomm has been involved in price-fixing and that the chip designer has inflated the prices of essential components with its licensing model. Few phone chipset manufacturers choose to pay licensing now for Qualcomm's CDMA and LTE IP, so Qualcomm's functional monopoly may continue in the United States (with some notable exceptions).

Qualcomm contends Apple's aim is to pay less for the Qualcomm intellectual property that allowed Apple to prosper in smartphones with little or no investment in the core cellular technology.

Qualcomm executive vice president and senior counsel Dan Rosenberg said in a statement that the company plans "to vigorously defend our business model, and pursue our right to protect and receive fair value for our technological contributions to the industry".


Qualcomm, a longtime supplier of 3G and LTE modems for iPhones, said Apple has "launched a global attack" against its company, using its "enormous market power" to coerce unfair and unreasonable licensing terms.

"We have negotiated hundreds of bilateral license agreements over the last two plus decades". But recently its licensing business has come under attack.

Qualcomm has, unsurprisingly, not taken too keenly to that.

The suit was filed in the U.S. District Court for the Southern District of California. Investigations are under way in Japan, Taiwan and elsewhere. Then, when the story broke that Apple falsely claimed there was "no discernible difference", Apple "acted to prevent Qualcomm from revealing to consumers the extent to which iPhones with Qualcomm's chipsets outperformed iPhones with Intel's chipsets", the complaint reads. Apple's actions were meant to prevent consumers from realising that iPhones containing Qualcomm chipsets performed far better than iPhones containing chipsets supplied by Intel.

Apple previously reimbursed these companies for patent royalties paid to Qualcomm but has stopped in recent months, according to Qualcomm's court filing.

So far, the pair have failed to reach an agreement over the value of Qualcomm's SEPs. Yesterday, the chipmaker submitted its answers to the allegations and counterclaims to Apple's January lawsuit.

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