Apple sues Qualcomm over excessive licensing fees

Nieuws Mobiel Verenigde Staten 23 JAN 2017
Apple sues Qualcomm over excessive licensing fees
Apple has filed a lawsuit against Qualcomm claiming USD 1 billion in fees withheld by the chipmaker. Apple is demanding Qualcomm hand over money that was supposed to be a rebate for licensing fees. Qualcomm is holding back the money as punishment for Apple cooperating with Korean antitrust regulators, according to the complaint filed in San Diego, California and reported by Bloomberg.

Apple also wants back some of the billions of dollars it claims it was overcharged in Qualcomm’s "illegal scheme" to control the market for mobile phone chips, according to the suit. This is already the subject of a separate investigation by the FTC in the US. In addition, Apple wants the court to order a change in how Qualcomm charges for its technology. 

Qualcomm said in a statement that Apple's claims are "baseless", while accusing the company of supporting the "regulatory attacks on Qualcomm’s business" in various places around the world, such as South Korea and the US. 

Apple said Qualcomm was relying on "older, legacy, standards" in its products, while maintaining its dominant position "through exclusionary tactics and excessive royalties". Apple claims that Qualcomm licences cost "at least five times more in payments than all the other cellular patent licensors we have agreements with combined". 

The complaint also challenges the validity of some key Qualcomm patents for wireless technologies. Even if the patents are upheld, Apple wants the court to set the royalties much lower. 

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