In a dispute over royalty payments, Apple has filed a lawsuit against longtime iPhone modem supplier Qualcomm. On the other hand, Qualcomm has denied any wrongdoing.
Apple’s complaint comes close on the heels after the U.S. Federal Trade Commission – FTC also filed a lawsuit against Qualcomm, accusing the company of forcing Apple to buy wireless chipsets in exchange for better royalties.
On the other hand, Qualcomm has defended its actions. In a statement, Qualcomm has said, “Apple has filed two complaints against Qualcomm in China. 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.”
Don Rosenberg, executive vice president and general counsel of Qualcomm, said, “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.”
“While we are still in the process of reviewing the complaint in detail, it is quite clear that Apple’s claims are baseless. 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. 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, executive vice president and general counsel, Qualcomm Incorporated.