Apple iPhone would be nothing without us - Qualcomm

Posted April 13, 2017

In addition, during comparisons where iPhones that are equipped with Qualcomm's chips performed better than that of Intel's, the lawsuit states that Apple misrepresented the actual data by saying that there was no difference in performance.

Originally, it had been reported that Qualcomm was mulling retaliatory legal action against Apple, but that it hoped the business relationship between the two would go unaffected.

"Apple's goal is clear - to leverage its enormous power to force Qualcomm into accepting less than fair value for the patented technologies that have led innovation in cellular technology and helped Apple generate more than $760 billion in iPhone sales", Qualcomm said in its filing.

According to Don Rosenberg, executive vice president and general counsel of Qualcomm, "Now, after a decade of historic growth, Apple refuses to acknowledge the well established and continuing value of those technologies". 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 U.S. (with some notable exceptions).

Apple also breached and mischaracterized agreements with it, encouraged global regulatory attacks on it, and caused iPhone contract manufacturers to withhold royalties, according to Qualcomm.

This is truly a fight between two dominate players in the smartphone industry - one which gobbles up the majority of the profits for handsets (Apple) and one that has an overwhelmingly massive lead as an SoC and baseband provider for all smartphone manufacturers (Qualcomm) - not to mention licensed LTE intellectual property. Apple complained in their lawsuit that Qualcomm was gouging them on licensing.

In its court filing, Qualcomm claims Apple played a role in this recent regulatory scrutiny by "intentionally giving government agencies false and misleading information and testimony about Qualcomm".

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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.

Apart from Apple's accusation, Qualcomm is also being investigated in Europe, Japan and Taiwan for anticompetitive and monopolistic trade practices. However, Qualcomm claim that Apple threatened the chipmaker to block the revelation that will throttle Qualcomm-powered iPhones.

In January WIPR reported that Apple had sued Qualcomm at the US District Court for the Southern District of California after it had allegedly been overcharged billions of dollars by Qualcomm. A minor controversy erupted past year after tests found the iPhone 7 from Verizon could download data faster than the iPhone 7 from AT&T, but didn't.

"Qualcomm is the world leader in inventing and developing fundamental, ground-breaking mobile technologies that enable the worldwide mobile ecosystem".

Apple's initial case claimed that it had been extorted by Qualcomm for what it referred to as "basic smartphone technology", something Rosenberg described as nonsensical.

In today's Qualcomm countersuit seeks for damages from Apple to not reaching the several agreements and to stop Apple interfering the deals with the iPhone and iPad parts manufacturing where Apple rejected Qualcomm's FRAND licensing offer.