Qualcomm has filed its answer and counterclaims to the January lawsuit brought by iPhone maker Apple against the wireless chipset company in the U.S. District Court.
The US-based Qualcomm said it would seek damage from Apple. Qualcomm is the global leader in the 3G and 4G chipset market.
Qualcomm’s filing details the value of the technologies Qualcomm has invented, contributed and shared with the industry through its licensing program, as well as Apple’s failure to engage in good faith negotiations for a license to Qualcomm’s 3G and 4G standard essential patents.
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The filing outlines how Apple:
# Breached agreements and mischaracterized agreements and negotiations with Qualcomm
# Interfered with Qualcomm’s agreements with Qualcomm licensees that manufacture iPhones and iPads for Apple
# Encouraged regulatory attacks on Qualcomm’s business in various jurisdictions by misrepresenting facts and making false statements
# Chose not to utilize the performance of Qualcomm’s modem chips in its iPhone 7, misrepresented the performance disparity between iPhones using Qualcomm modems and those using competitor-supplied modems
# Threatened Qualcomm in an attempt to prevent it from making any public comparisons about the superior performance of the Qualcomm-powered iPhones
Qualcomm in a statement issued on Tuesday said it would seek damages from Apple for reneging on its promises in several agreements and to enjoin Apple from further interference with Qualcomm’s agreements with the companies that manufacture iPhones and iPads for Apple.
“The value of our inventions has been proven through hundreds of license agreements, negotiated and renegotiated over almost three decades, with virtually every significant handset maker in history, including the companies in Asia that have manufactured Apple iPhones and iPads,” said Don Rosenberg, executive vice president and general counsel of Qualcomm.
Qualcomm said Apple, a leader in smartphone market, has played a significant role in bringing the benefits of mobile technology to consumers with its popular products and services — over the last 10 years.
Qualcomm said Apple could not have built the iPhone franchise that has made it the most profitable company in the world, capturing over 90 percent of smartphone profits, without relying upon Qualcomm’s cellular technologies.
Qualcomm is one of the top patent holders in the global telecom market.
Apple sued Qualcomm in January for nearly $1 billion over royalties, with Cupertino-based tech giant alleging the wireless chipmaker did not give fair licensing terms for its processor technology.
Regulators in South Korea issued a nearly $1 billion fine against Qualcomm in a similar case.
The threat is worrying for the investors in Qualcomm as the company’s share price has lost 12 per cent since the day before Apple filed suit.
“Our chips had capabilities that Apple chose not to use in the iPhone 7, in my belief, because they wanted to basically employ a lowest common denominator approach. Intel’s modem chip could not do, did not have the capabilities that our chips had,” a Qualcomm spokesperson said.