US: Qualcomm wants Apple manufacturers to pay up

Qualcomm is asking a court to force Apple’s iPhone and iPad manufacturers to pay up, since they’ve been withholding royalty payments for weeks under Apple’s instructions.

In a court filing yesterday, Qualcomm asked for a preliminary injunction against four of Apple’s suppliers — Foxconn, Pegatron, Wistron, and Compal — all of began suing for breach of contract earlier this month. Qualcomm said in April that Apple had instructed those companies not to pay royalties for devices they made using Qualcomm technology. It later said that would lead to a loss of $500 million in revenue this quarter alone because of the missing payments.

Qualcomm and Apple are locked in a worldwide legal dispute over patents and payments, with Qualcomm largely stuck playing defense. Apple has said that Qualcomm has been charging excessively high patent licensing fees for years, using its position as the dominant supplier of smartphone modems as leverage.

In its new filing, Qualcomm says that Apple is trying to force a settlement by throwing its weight around. “Apple could litigate against Qualcomm indefinitely; it has virtually unlimited resources (more than $256 billion in cash reserves) and already has filed multiple cases against Qualcomm not just in this court, but around the world. And when those cases end, Apple can file more cases,” the company writes in a new filing.

Full Content: Nasdaq

Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.