Sunday, 30 April, 2017

Qualcomm accuses Apple of false statements in lawsuit

Mae Harvey | 13 April, 2017, 02:13

The company also claims that Apple chose to limit the performance of iPhones that used Qualcomm chips so that consumers would not realise they performed better than those supplied by rival Intel. "When Apple spends billions redefining the concept of a smartphone camera, Qualcomm's royalty payments go up".

But Qualcomm refuted the allegations, saying that Apple had intentionally mischaracterised the agreements and negotiations, as well as the enormity and value of the technology they had invented, contributed and shared with all mobile device makers "through our licensing programme". Basically, Apple does not have a direct license on Qualcomm's technologies, but the company relies on its licensing agreements between iPhone and Qualcomm that capture over 90 percent of smartphone profits.

"[Apple] has launched a global attack on Qualcomm and is attempting to use its enormous market power to coerce unfair and unreasonable license terms from Qualcomm". The iPhone maker reckons Qualcomm's royalties should be based on the value of its particular contribution to each device, instead of being based on the selling price of the devices' themselves.

The FTC's lawsuit also accused Qualcomm of anticompetitive practices by using its dominance to overcharge for its products.

Qualcomm and Apple have worked together for years with the former providing the chipsets for pretty much every iPhone and iPad iteration since the beginning.

Qualcomm Inc (NASDAQ:QCOM) has accused Apple Inc (NASDAQ:AAPL) of inciting regulatory investigations of the United States chipmaker by mispresenting facts and making false statements.

The company also says that Apple prevented it from revealing to customers "the extent to which iPhones with Qualcomm's chipsets outperformed iPhones with Intel's chipsets".

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Apple's original lawsuit follows the US Federal Trade Council's accusation that Qualcomm charged excessive royalties. Under Qualcomm's licensing structure, Apple, through its manufacturers, pays Qualcomm a fee for its chips and another fee for the intellectual property utilized in the chips and mobile phones.

Chips from Qualcomm and Intel were both included in different models of the iPhone 7.

In the 139-page counterclaim that Qualcomm released, the company has five key points that it is trying to push in its own lawsuit against Apple.

Qualcomm's put on the boxing gloves in a patent spat with Apple. However, Qualcomm claim that Apple threatened the chipmaker to block the revelation that will throttle Qualcomm-powered iPhones.

Consequently, Rosenberg further explains, Qualcomm plans to stand its ground and fight for its right to protect its technology and receive appropriate compensation for the part it played toward advancing the mobile industry.

Qualcomm seeks damages from Apple "for reneging on its promises in several agreements", the company said in a statement.

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