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Apple contractors Foxconn, Wistron, Compal Electronics, and Pegatron join legal counter...

By Jos
Jul 19, 2017
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  1. [parsehtml]<p><img alt="" src="https://techspot-static-xjzaqowzxaoif5.stackpathdns.com/images2/news/bigimage/2016/10/2016-10-25-image-20.jpg" style="width: 987px; height: 427px;" /></p> <p>Apple contractors Foxconn, Pegatron, Wistron, and Compal Electronics have filed an antitrust <a href="http://www.patentlyapple.com/patently-apple/2017/07/apple-joins-in-new-lawsuit-against-qualcomm-filed-by-suppliers-hon-hai-pegatron-wistron-and-compal.html">lawsuit against Qualcomm</a> alleging that the company has violated two sections of the U.S. based Sherman Act. This is the latest and an ongoing battle between over wireless patent royalties.</p> <p>Qualcomm is the market leader in smartphone modems and a primary supplier to Apple, yet Apple doesn&rsquo;t have a direct patent deal with Qualcomm. Instead, Qualcomm requires Apple&rsquo;s contractors to sign patent license agreements before purchasing chips, which the US Federal Trade Commission called in its own complaint a &ldquo;<a href="https://www.techspot.com/news/69788-apple-accuses-qualcomm-operating-illegal-business-model.html">no license, no chips</a>&rdquo; model.</p> <p>Besides paying for the wireless chips themselves, Apple covers the licensing fees to the four manufacturers who then pay Qualcomm, this allows Qualcomm to take a percentage of the overall iPhone selling price in exchange for supplying the modem chips.</p> <p>Apple stopped making royalty payments to its contractors after it sued Qualcomm in January for $1 billion. The dispute has been ongoing ever since, with Qualcomm filing a handful of countersuits of their own, accusing Apple of intentionally <a href="https://www.techspot.com/news/68902-qualcomm-suing-apple-intentionally-hindering-chipsets-iphones.html">hindering chipsets</a> on some iPhones, infringing on patents, and attempting to get an import ban of iPhones into the US with the FTC.</p> <p>Speaking at the Fortune Brainstorm Tech conference in Aspen recently, Qualcomm CEO Steve Mollenkopf said the company&#39;s fight with Apple about patents was mostly a &quot;fight about what to pay for the IP&quot; that he described as the core of the industry. He expects that the Apple dispute will be <a href="https://www.pcmag.com/article/355020/qualcomm-expects-to-settle-apple-lawsuit-roll-out-5g-in-201">resolved out of court</a> as has been the case with similar legal battles in the 2000s.</p><p><a rel='alternate' href='https://www.techspot.com/news/70197-apple-contractors-foxconn-wistron-compal-electronics-pegatron-join.html' target='_blank'>Permalink to story.</a></p><p class='permalink'><a rel='alternate' href='https://www.techspot.com/news/70197-apple-contractors-foxconn-wistron-compal-electronics-pegatron-join.html'>https://www.techspot.com/news/70197-apple-contractors-foxconn-wistron-compal-electronics-pegatron-join.html</a></p>[/parsehtml]
     
  2. erickmendes

    erickmendes TS Evangelist Posts: 490   +218

    Apple being a b*tch. Myself moving along, no news here...
     

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