© tom_schmucker dreamstime.com Business | January 23, 2017
Apple sues Qualcomm for roughly $1 billion
Following the news that the FTC has filed a complaint in federal district court charging Qualcomm with using anticompetitive tactics – Apple is suing the chip company for roughly USD 1 billion.
Apple claims that Qualcomm has unfairly insisted on charging royalties for technologies they have nothing to do with. The Cupertino company also says that Qualcomm has been “withholding nearly USD 1 billion in payments from Apple as retaliation for responding truthfully to law enforcement agencies investigating them," as reported by CNBC. The news outlet also published Apple statement in full, which follows below: "For many years Qualcomm has unfairly insisted on charging royalties for technologies they have nothing to do with. The more Apple innovates with unique features such as TouchID, advanced displays, and cameras, to name just a few, the more money Qualcomm collects for no reason and the more expensive it becomes for Apple to fund these innovations. Qualcomm built its business on older, legacy, standards but reinforces its dominance through exclusionary tactics and excessive royalties. Despite being just one of over a dozen companies who contributed to basic cellular standards, Qualcomm insists on charging Apple at least five times more in payments than all the other cellular patent licensors we have agreements with combined. To protect this business scheme Qualcomm has taken increasingly radical steps, most recently withholding nearly $1B in payments from Apple as retaliation for responding truthfully to law enforcement agencies investigating them. Apple believes deeply in innovation and we have always been willing to pay fair and reasonable rates for patents we use. 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." To read Qualcomm’s response – follow this link
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