Qualcomm sues Apple, claiming breach of contract

As we have noted before, Apple and Qualcomm have been suing each other left and right over several issues including Qualcomm's failure to pay Apple $1 billion that Apple claims it is owed by the chip maker. Qualcomm claims that manufacturers that build Apple products like the iPhone and iPad, have withheld Qualcomm royalties at Apple's request. The latter has attempted to get an injunction against Apple that would prevent the firm from selling the iPhone in China. And Apple says that Qualcomm has refused to license its standard essential patents at the required fair, reasonable and non-discriminatory rate.

Qualcomm, which has supplied Apple with modem chips for the iPhone from day one, now shares that duty with Intel. But apparently, Apple is planning on sourcing its modem chips for the 2018 iPhone, iPad and iPod touch devices from Intel and lesser known MediaTek. Last year, Apple used Qualcomm's modem chips for the CDMA version of the Apple iPhone 7 and Apple iPhone 7 Plus, while Intel handled the job for the GSM models of the same phone.

Today, Qualcomm filed a suit in California state court in San Diego (where the company is headquartered) claiming that Apple used its leverage in attempting to obtain certain information about Qualcomm's modem chips that it planned on passing along to Intel. In the suit, Qualcomm said that Apple was obligated under its contract with Qualcomm, to make sure that Apple engineers did not receive confidential information about the Qualcomm modem chips. To be more precise, the Apple employees working with Qualcomm components were not allowed to share information about them with Apple employees working with the Intel chip.

Qualcomm alleges that in July, Apple requested information via email on how the company's modem chips worked on an unidentified wireless carrier. According to the suit, Apple arranged for an Intel engineer to receive a copy of Qualcomm's reply. 

All of this legal action is bound to hurt Qualcomm more than Apple, even though many believe that Qualcomm makes the superior modem chip. Not too many laymen wonder about the company that is responsible for the modem inside their iPhone. Meanwhile, Qualcomm could be saying good bye to the company responsible for 20% of its modem chip business last year, worth $3.2 billion in revenue.

source: Reuters

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17 Comments

1. L0n3n1nja

Posts: 1550; Member since: Jul 12, 2016

I read about this on another site already, it gave me the impression Apple took Qualcomm modem information and gave it to Intel. So not only is Apple refusing to honor their contract and pay Qualcomm, telling others not to pay Qualcomm, they are also giving Qualcomm's information and secrets to their competitor.

2. Arch_Fiend

Posts: 3951; Member since: Oct 03, 2015

In this court room battle between Apple and Qualcomm, Apple really does come of as the bad guy, especially if the allegations about Apple sharing Qualcomm tech with Intel is true smh that is just low AF!

9. Furbal unregistered

If true they are screwed. Corporate espionage is expensive.

3. Paranoid_Android unregistered

Not only Apple has breached the contract, but they are trying to get other companies along with them. I think Apple is in the wrong here. You sign a contract, your fulfill it. As simple as that.

14. Leo_MC

Posts: 7210; Member since: Dec 02, 2011

Except when the contract is flawed.

15. BlackhawkFlys

Posts: 908; Member since: May 07, 2014

You don't sign a flawed contract. Once you sign a contract, you fulfill it. Apple executives are not kids.

16. Leo_MC

Posts: 7210; Member since: Dec 02, 2011

How could Apple have known from the beginning that QC charged an unfare price?

4. sissy246

Posts: 7078; Member since: Mar 04, 2015

Good for Qualcomm. A contract is a contract and once you agree to the terms and sign it thats it.

13. trublackrose

Posts: 45; Member since: Apr 14, 2015

Shame nobody shares that thought with Cellphone Contracts. Which is why we are now paying full retail for phones.

5. fyah_king unregistered

The judge will still side with Apple. They can't let Apple lose.

6. uncle_gadget

Posts: 1050; Member since: Sep 20, 2017

But Apple is breaching a contract because tbey agreed to pay. This one should stick. Until the court says the contract is no good, Qualcomm should pay. And if Apple should get any refund, the court can order it.

7. you_sukk_it

Posts: 219; Member since: Apr 11, 2017

I hate qualcomm. when a company knowingly sells products they know are problematic, they are on my red list. crucial is the same with their faulty 1st gen ssd and ocz with their core 64gb ssd that brought me nightmares at night.

8. Settings

Posts: 2943; Member since: Jul 02, 2014

You should get out more and breathe some fresh oxygen when silicon products gives you nightmares.

17. you_sukk_it

Posts: 219; Member since: Apr 11, 2017

bitch dont worry about me.

10. Foxgabanna

Posts: 587; Member since: Sep 11, 2016

Let's go Apple! When you WIN big every loser wants to see you fall! Can't wait to ditch my Note 8 for my iPhone X 256GB tomorrow! P.S. Add a Series 3 in there for me as well.

11. trojan_horse

Posts: 5868; Member since: May 06, 2016

You who bashes and craps on Android phones, you bought a Note 8? You use a Note8? LMAO... Who would believe that? SMH

12. Peacetoall unregistered

I'll be buying laggy iphone x just to ditch it for the beast note 8.

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