Qualcomm has filed a lawsuit against Apple for alleged patent infringement as the legal dispute between the two tech giants gets a bit more heated.
As Bloomberg reports, at issue is whether Apple should pay Qualcomm for the latter’s mobile phone technology currently built into the iPhone.
Qualcomm says Apple has infringed on half a dozen patents and is asking the United States International Trade Commission to ban U.S. sales on versions of the iPhone not built with Qualcomm chips.
According to Bloomberg, Qualcomm’s strategy is two-fold: to “increase pressure on Apple to pay up” and also show that its technology is “cutting edge…rather than milking old inventions” as Apple has countered.
In terms of financial impact, the patents give Qualcomm a piece of every smartphone sale — even on devices that do not have Qualcomm chips — and Apple contends the system is one allowing Qualcomm to illegally boost semiconductor unit sales via chip modems, Bloomberg reported. Apple has stopped paying tech license payments to the company and has also filed an antitrust lawsuit alleging monopolization.
With the patent dispute in place and ban efforts added to the mix, Will Stofega, an analyst with global market intelligence provider IDC Corporation, told Bloomberg the legal wrangling does not “bode well for a quick and easy agreement.”
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“The bottom line is Apple wants a lower price and Qualcomm says no,” said Stofega. “This is a really big issue and they’re prepared to fight.”
Bloomberg reported the patent claims were filed in federal court in California, where Apple filed its antitrust suit. There is no limit to how much Qualcomm can seek in royalties, the newswire stated, as the patents are not covered by industry standards.
