Qualcomm Counterpunches in Court Fight With AppleTuesday, April 11, 2017
Qualcomm Inc. is seeking unspecified damages against Apple Inc. in U.S. District Court. The move comes in the wake of Apple (Nasdaq: AAPL) filing multiple lawsuits against Qualcomm (Nasdaq: QCOM) earlier this year, saying Apple is owed $1 billion.
The San Diego business filed an answer and counterclaims against Apple in San Diego federal court on April 10. That is one of several venues where Apple is suing Qualcomm.
Among other things, Qualcomm alleges that Apple encouraged regulatory attacks on Qualcomm’s business in various jurisdictions around the world by misrepresenting facts and making false statements.
Qualcomm also alleges that Apple “chose not to utilize the full performance of Qualcomm’s modem chips in its iPhone 7 [and] misrepresented the performance disparity between iPhones using Qualcomm modems and those using competitor-supplied modems.”
"… Apple could not have built the incredible iPhone franchise that has made it the most profitable company in the world, capturing over 90 percent of smartphone profits, without relying upon Qualcomm’s fundamental cellular technologies,” Don Rosenberg, Qualcomm’s general counsel, said in a statement issued April 10. “Now, after a decade of historic growth, Apple refuses to acknowledge the well-established and continuing value of those technologies. It 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. We intend to vigorously defend our business model, and pursue our right to protect and receive fair value for our technological contributions to the industry.”
Apple said Qualcomm owes the Silicon Valley company about $1 billion in rebates in exchange for Apple’s agreement to exclusively use Qualcomm electronics in its mobile devices over several years. Apple also alleged that Qualcomm withheld the money as punishment for Apple cooperating with South Korean regulators in the country’s antitrust investigation.
Qualcomm executives have disputed Apple’s account.