Qualcomm Says Apple’s Claims in $1 Billion Lawsuit Are ‘Baseless’; Company ‘Misrepresented Facts’

Apple on Friday announced it’s suing iPhone modem supplier Qualcomm, which owns many wireless patents, “after years of disagreement over what constitutes a fair and reasonable royalty”. The suit argues Qualcomm withheld nearly $1 billion in payments it owes to Apple as retaliation because Apple cooperated with the Korea Fair Trade Commission. Last month, Korean regulators slapped Qualcomm with a $850 million fine over its patent-licensing practices.

Apple’s suit, filed in federal district court in the Southern District of California, accuses Qualcomm of charging royalties for technologies “they have nothing to do with.” Responding to the complaint, Qualcomm called Apple’s claims groundless and said they “misrepresented facts”.
“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.” said Don Rosenberg, executive vice president and general counsel, Qualcomm Incorporated.
Qualcomm says that it “welcomes the opportunity” to have Apple’s meritless claims examined in a court.

Apple sued Qualcomm because the latter held back payments of roughly $1 billion in retaliation for the Cupertino company responding “truthfully” information to a law enforcement agency that was investigating Qualcomm.

“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, Qualcomm’s General Counsel.

Apple’s suit against Qualcomm comes in light of the FTC filing that identified Apple as a key purchaser of Qualcomm chipsets. The Cupertino firm is taking Qualcomm to court because, in Apple’s own words, it’s demonstrated “willingness to retaliate swiftly against Apple when it believes agency or other actions are contrary to its interests.”

Source: The Wall Street JournalCNBC, Qualcomm


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