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Apple Files Lawsuit against Qualcomm in China
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Qualcomm chip

Summary: Apple filed another lawsuit against Qualcomm in China, just days after filing a lawsuit against the chip-maker in US federal court.

Apple is taking their fight against Qualcomm to China. The tech giant filed lawsuits in China against Qualcomm on Wednesday accusing the chip-maker of monopolizing power in the country. Apple stated, “For many years, Qualcomm has unfairly insisted on charging royalties for technologies they have nothing to do with. Qualcomm built its business on older, legacy, standards but reinforces its dominance through exclusionary tactics and excessive royalties.”

  
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Read Apple Sues Qualcomm for Unfair Licensing Terms to learn more.

Qualcomm general counsel Don Rosenberg fired back, “These filings by Apple’s Chinese subsidiary are just part of Apple’s efforts to find ways to pay less for Qualcomm’s technology. Qualcomm is prepared to defend its business model anywhere in the world.” Rosenberg is referring to the lawsuit Apple filed in California just a few days ago. In the lawsuit filed in US federal court, Apple accused Qualcomm of abusing its market power to receive unfair royalties, backing charges by US antitrust regulators.

Apple claims they have been overcharged “billions of dollars” by Qualcomm’s “illegal scheme.” Apple believes that Qualcomm has built a business model that relies on technologies that are considered telecommunication industry standards and then charging high royalties off of Apple’s advanced features like digital wallets and TouchID fingerprint recognition.

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Read Two Antitrust Investigations into Qualcomm to learn more.

Qualcomm was hit with a $850 million fine by South Korea’s anti-trust watchdog for abusing its dominant market position. Qualcomm Derek Aberle noted that they will appeal the decision, seeking a stay with the Seoul High Court. Rosenberg added, “Apple has been actively encouraging regulatory attacks on Qualcomm’s business in various jurisdictions around the world…by misrepresenting facts and withholding information.”



Qualcomm makes the chip-based modems that Apple needs to allow their iPhones and iPads to communicate with telecommunication networks. Apple believes that Qualcomm should only collect royalties on the price of the modem chips instead of the price the phone sells for.

Do you think Qualcomm should be paid for the price of the chip or the based on the price of the phone. Tell us in the comments below.

To learn more about Apple’s legal issues, read these articles:

Photo: commons.wikimedia.org



 

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