Qualcomm sues iPhone manufacturers Compal, Foxconn, Pegatron, and Wistron in escalating...

By Jos
May 17, 2017
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  1. Qualcomm is escalating its patent dispute with Apple by suing the contractors that build iPhones for the Cupertino-based company. Filed Wednesday in a federal district court in San Diego, the lawsuit accuses Compal Electronics, Foxconn, Pegatron and Wistron of breaching patent-licensing agreements with Qualcomm by halting royalty payments on Qualcomm technology used in iPhones and iPads.

    Apple originally sued Qualcomm for $1 billion, saying that the mobile chip maker had been dramatically overcharging it for the use of basic patents. Qualcomm hit back with a countersuit, claiming among other things, that Apple deliberately hindering the performance of Qualcomm chips in certain iPhone 7 models to make Intel chips look better and that it encouraged regulatory attacks on Qualcomm's business.

    Apple doesn't have a patent license directly with Qualcomm, relying instead on licenses held by the contract manufacturers, whom Apple reimburses. However, in an aggressive move, last month the iPhone maker reportedly instructed its manufacturing partners to stop paying royalties to Qualcomm, as it wasn’t going to reimburse them anymore until a court determines how much it actually owes. Apple agreed to indemnify them against any damages they may incur by failing to pay royalties to Qualcomm.

    "We've been trying to reach a licensing agreement with Qualcomm for more than five years but they have refused to negotiate fair terms," an Apple representative told Market Watch.

    Qualcomm's patent-licensing segment in fiscal 2016 contributed roughly 80% of its pretax profit.

    Permalink to story.

  2. Uncle Al

    Uncle Al TS Evangelist Posts: 3,336   +1,985

    Same old news, different company .......
  3. MonsterZero

    MonsterZero TS Evangelist Posts: 440   +223

    Because suing a company for 1 Billion dollars is negotiating "fair".....
  4. Forbes 17 Aug 2016 edited for brevity
    " In an interview with The Washington Post last week, Apple CEO Tim Cook discussed his tenure at Apple and, not surprisingly, fielded questions on Apple's tax practices.......Cook invoked the "f" word when talking...saying that he wouldn't bring over Apple's...funds "until there’s a fair rate," meaning, of course, a "fair" tax rate, whatever that is. Cook was referring to the more than $230 billion cash sitting offshore. Parked funds aren't subject to tax"

    It looks like Apple has a thing about being treated fairly

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