The world’s largest maker of phone semiconductors responded to a January lawsuit from Apple with counterclaims for damages, alleging the iPhone maker breached contractual pledges, mischaracterised their agreements and misrepresented facts.
Qualcomn accused Apple of lying to regulators to spur investigation of the chip maker, and threating it to cover up the use of inferior parts in some iPhone.
The world’s largest maker of phone semiconductors responded to a January lawsuit from Apple with counterclaims for damages late Monday, alleging the iPhone maker breached contractual pledges, mischaracterised their agreements and misrepresented facts.
“We were really stunned by some of the things that they included in their suit”, said Qualcomn General Counsel Don Rosenberg. “This is our attempt to respond to some disturbing elements in their complaint.”
At the heart of the worsening standoff is a commercial dispute over how much Qualcomn is entitled to charge phone makers to use it patented technology, whether or not they use it chips. The San Diego, California-based company gets the majority of its profit from licensing technology that covers the fundamentals of all modern mobile phone systems. Qualcomm shares are down 12% since Apple sued January 20, wiping more than $10 billion off the chip-maker’s market value.
Apple spokesman Josh Rosenstock declined to comment on the filling, saying the company’s
lawsuit explains its position on the matter. “we are extremely disappointed in the way Qualcomm is conducting its business with us and unfortunately after years of disagreement over what constitutes a fair and reasonable royalty we have no choice left but to turn to the courts,” Apple said in a statement.
Apple is alone among major handset makers is not paying Qualcomm directly and has instead paid through contract manufacturer’s in Asia who build the iPhone. it’s now meddling in the legal agreements Qualcomm has with those suppliers, including Foxconn Technology as it pressures the chip-maker to cut a more favorable deal on licensing fees, Rosenberg said.
According to Qualcomm, Apple is behind regulatory investigations of its business practices worldwide. Cupertino, California-based Apple has lobbied with “false and misleading statements to induce regulators to take action against us because it would be in their commercial interests.” Rosenberg said.