Apple Sues Qualcomm for $1 Billion


Apple is suing Qualcomm for $1 billion, saying that the mobile chip maker has been dramatically overcharging it for the use of basic patents, according to CNBC.

The lawsuit comes just days after the US Federal Trade Commission began suing Qualcomm for anti-competitive practices over the same issue. The commission said that Qualcomm had been forcing phone manufacturers to pay “disproportionately high” fees for use of patents necessary to make a smartphone. This is exactly what Apple is arguing, too.

Because these patents are essential to industry-wide standards, they’re supposed to be licensed out on fair, reasonable, and non-discriminatory (“FRAND”) terms. The commission argued that Qualcomm was using its market position as the dominant smartphone modem supplier to force manufacturers into paying excessive fees.

Qualcomm denied all of the commission’s claims. But Apple argues here that there’s a very expensive truth to them.

In a statement provided to CNBC, Apple says that Qualcomm withheld nearly $1 billion “as retaliation for responding truthfully to law enforcement agencies investigating them.” That was apparently related to a South Korean investigation of Qualcomm, which led to an $853 million fine last month.

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SOURCE: The Verge, Jacob Kastrenakes