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Wednesday, January 25, 2017
Apple Sues Qualcomm in China


Apple has filed a lawsuit against Qualcomm in Beijing, alleging that the chip supplier abused its dominant position in the chip industry and seeking 1 billion yuan ($145.32 million) in damages.



According to Beijing's Intellectual Property Court, Apple also
filed a second lawsuit against Qualcomm, which accused it of failing to live up to promises made to license "standard essential patents" broadly and inexpensively.

The lawsuits follow a decision by the U.S. Federal Trade Commission to file a complaint on Jan. 17 in which it accused Qualcomm of using anticompetitive tactics to maintain its monopoly of a key semiconductor used in mobile phones.

Apple followed with a related lawsuit last Friday. It asked a federal court in California for $1 billion in promised rebates and accused Qualcomm of overcharging for chips.

Apple and Samsung together accounted for 40 percent of Qualcomm's $23.5 billion in revenue in its most recent fiscal year.

"We have not seen these complaints but according to the Beijing court's press release, one of the complaints alleges a violation of China's Anti-Monopoly Law, and the other requests a determination of the terms of a patent license between Qualcomm and Apple for Qualcomm's cellular standard essentials patents," Qualcomm said.

Don Rosenberg, executive vice president and general counsel of Qualcomm, provided the following comment:

"These filings by Apple's Chinese subsidiary are just part of Apple's efforts to find ways to pay less for Qualcomm's technology. Apple was offered terms consistent with terms accepted by more than one hundred other Chinese companies and refused to even consider them. These terms were consistent with our NDRC Rectification plan.

Qualcomm is prepared to defend its business model anywhere in the world. We are proud of our history of contributing our inventions to the development and success of the mobile communications ecosystem."

Qualcomm faces legal challenges across the globe.

South Korea's antitrust regulator fined Qualcomm 1.03 trillion won ($854 million) in December for what it called unfair practices in patent licensing, a decision the U.S. chipmaker said it will challenge in court.

In February 2015, Qualcomm paid a $975 million fine in China following a 14-month probe, while the European Union in December 2015 accused it of abusing its market power to thwart rivals.



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