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Apple Alleges Qualcomm Chip Licenses are Invalid

Apple Alleges Qualcomm Chip Licenses are Invalid

Smartphones Jun 20,2017 0

Apple is adding adding more allegations to a complaint filed in January that accuses Qualcomm of trying to monopolize the chip market for wireless devices.

In the new claims, which are scheduled to be filed Tuesday in U.S. federal court in San Diego, Apple aims at Qualcomm's practice of requiring customers to sign patent license agreements before purchasing chips. The license allows Qualcomm to take a percentage of the overall selling price for iPhone in exchange for supplying the modem chips for the iPhones. Qualcomm should be allowed to charge for either a patent license or a chip, but not both, Apple argued.

Apple's new claims are based on a recent rulling from the
U.S. Supreme Court , which made it harder for manufacturers and drug companies to control how their products are used or resold.

If successful, Apple's attack would undermine a core tenet of Qualcomm's business model.

Apple sued San Diego-based Qualcomm in January, saying the chip maker improperly withheld $1 billion in rebates because Apple helped Korean regulators investigate Qualcomm.

Apple also asked the court to stop lawsuits that Qualcomm had filed against Foxconn Technology Group and three other contract makers that assemble the iPhone on Apple's behalf and are the formal buyers of Qualcomm's chip, as is standard in the electronics industry.

Tags: AppleQualcomm
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