Apple, Qualcomm spat intensifies, manufacturers drawn in

Alain Brian
Mai 18, 2017

Qualcomm filed a breach of contract lawsuit late Tuesday against four Taiwanese contract manufacturers that build iPhones and iPads for Apple - the latest salvo in an escalating war between two tech giants over patent royalties.

Qualcomm also stated in its complaint that Apple "even agreed to indemnify its manufacturers for any damages they might incur from their blatant damages".

In a separate agreement, Qualcomm pays Apple under a deal that the iPhone maker has described as a sort of "rebate" to lower the cost of royalties. "The manufacturers must continue to live up to their obligations under these agreements and Apple should immediately cease its tortious interference". But it certainly doesn't look goodfor the company right now, because Samsung and Intel have just filed amicus briefs against Qualcomm in its FTC battle. The story was widely repeated.

Apple reiterated that it had been trying to reach a licensing agreement with Qualcomm for more than five years but the company has refused to negotiate fair terms.

"We are suing to get our money", Rosenberg said. FIH was previously known as Foxconn International Holdings Ltd and is now a subsidiary of Hon Hai Precision Industry. The company is also seeking an order for declaratory relief and damages.

"What they are saying is Apple is not paying us, so we are not paying you, and Apple has told us not to pay you", said Rosenberg. With the contractors in turn not paying Qualcomm - at Apple's direction, Qualcomm says - the chipmaker last month was forced to slash third-quarter forecasts because it's unclear when the royalties will be paid. "I hope they take that action".

Qualcomm's patent-licensing segment in fiscal 2016 contributed roughly 80% of its pretax profit.

Seconds out for Round 6 in the Apple-Qualcomm brawl.

It is a complicated dispute. They have continued to pay royalties for using Qualcomm's patents in non-Apple products, the filing said. The Cupertino-company, at that time, cited how it can not pay royalties due Qualcomm while the ongoing legal battle was being waged between them; however the justification, in turn, set off a string of chain reactions that culminated in Qualcomm seeking an outright ban on iPhone imports into the U.S.

USA household debt reached a record high in the first three months of this year, topping the previous peak reached in 2008, when the financial crisis plunged the economy into a deep recession.

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