In his dispute over Apple's license rights regarding the use of its technologies in the iPhone, the Qualcomm group has not said its last word: it is now attacking assemblers for default of royalties.
The legal battle between Qualcomm and Apple on the issue of license fees looks Homeric. The Cupertino firm has triggered hostilities by filing a complaint about what it considers abusive licensing rights and claiming $ 1 billion in compensation.
Qualcomm was quick to reply by accusing Apple in turn of shielding the performance of the modems of the iPhone 7 to upgrade those of the competitor Intel, not allowing users to enjoy the advanced performance of its chips
The San Diego group is also attempting to block the iPhone's sales to the ITC (International Trade Commission) in order to force Apple to return to the bargaining table but has also increased the pressure by Complaint against the assemblers of the iPhone for default of payment of the royalties.
The iPhone assemblers caught in the gear
This concerns Foxconn, Pegatron, as well as Compal Electronics and Wistron who are accused of breaking their contract on license fees. At the instigation of Apple, they did not pay license fees for the production of iPhone and iPad, while continuing to pay fees for products unrelated to Apple.
They can do it all the less because the amount of these rights is refunded to them by Apple. By refraining from paying, the Cupertino firm is blocking the process and involves its suppliers who negotiate directly with Qualcomm.
However, intellectual property revenues are a key element of Qualcomm's business model and Apple is a significant part of it. The refusal of the Cupertino firm to pay the fees (which are in fact refunds of the license fees paid by the assemblers) has already led the mobile chip manufacturer to lower its quarterly financial forecasts.
For its part, Apple has obtained the support of several large companies, such as Samsung and Intel, which support the vision of abusive license rights imposed by Qualcomm, relying on recent decisions by international regulators.
Source : Wall Street Journal
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