Qualcomm hits back at Apple suppliers for breach of contract

How Regulatory Issues Could Impact Qualcomm’s Fiscal 2017 Revenue

The Sandiago based tech company said the defendants are continuing to pay Qualcomm royalties for use of Qualcomm's technology in non-Apple products, under the very same agreements that apply to the Apple products.

Our report covers Qualcomm's press release and a Scribd document of the actual court filing against Apple's iPhone suppliers.

Qualcomm on Wednesday said it's filed a counter suit against Apple's iPhone and iPad manufacturers for withholding royalty payments.

Early this year, it withheld $1 billion in reimbursements on the grounds that Qualcomm had reneged on a separate royalty "rebate" agreement with Apple in retaliation for Apple's cooperation with anti-trust regulators. "The manufacturers must continue to live up to their obligations under these agreements and Apple should immediately cease its tortious interference".

The lawsuit, filed in U.S. District Court in San Diego, names Foxconn, formally known as Hon Hai Precision Industry Co., and its subsidiary, FIH Mobile Ltd; Pegatron Corp.; Wistron Corp. and Compal Electronics Inc. "Despite being just one of over a dozen companies that 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".

Apple said that Qualcomm has "refused to negotiate fair terms", and made a decision to stay paying until a judge can determine how much they should cough up in royalties.

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The company licenses patents based on the price of the entire device, and it has agreed to provide certain patents under "fair, reasonable and non-discriminatory" terms because they are included in wireless industry standards.

Even Samsung is on Apple's side, but Qualcomm isn't giving up ...

"Pay for what you take and if you don't want to pay for it, don't take it", he said.

Qualcomm was little changed at $55.89 at 12:45 p.m.in NY trading, while Apple dropped 2.2 percent to $152 as broader markets fell amid political turmoil in Washington.

"We are suing to get our money", Rosenberg said. The FTC and Apple accused it of abusing its power in the chip business. Qualcomm said it is seeking an order to require all of those companies to comply with "long-standing contractual obligations" to Qualcomm, and is also seeking declaratory relief and damages. A hearing is scheduled for June 15, and Koh has set a trial date of January 3, 2019.

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