Qualcomm sues iPhone and iPad manufacturers after Apple orders them not to pay royalties

Qualcomm sues iPhone and iPad manufacturers after Apple orders them not to pay royalties
In the continuing legal saga between Apple and Qualcomm, the chipmaker today filed a complaint in the United States District Court for the Southern District of California against FIH Mobile Ltd. and Hon Hai Precision Industry Co., Ltd. (both combine to form Foxconn), Pegatron Corporation, Wistron Corporation, and Compal Electronics, Inc. These are the firms that assemble the Apple iPhone and Apple iPad devices.

The aforementioned contract manufacturers have stopped paying royalties they owe Qualcomm for the licensing of certain technology used on Apple's handsets and tablets. It isn't that these firms feel that they don't owe the money to Qualcomm. The companies aren't paying Qualcomm because they are being instructed by Apple not to pay. Some of the licensing agreements between Qualcomm and the manufacturers date back more than ten years ago, before the first iPhone was sold. Qualcomm is still being paid royalties by these manufacturers for the use of its technology in non-Apple products.

As we told you last month, Qualcomm filed counterclaims against Apple after the latter sued the chipmaker in January. Included in a series of charges against Apple, Qualcomm accused the tech titan of interfering "with Qualcomm’s long-standing agreements with Qualcomm licensees that manufacture iPhones and iPads for Apple." That complaint deals with Apple's demand that the contract manufacturers refrain from paying Qualcomm.


Apple accuses Qualcomm of stiffing it on $1 billion worth of royalties that Qualcomm refuses to pay. Apple alleges that this is being done because Apple spoke to law enforcement agencies about the company. A second suit filed by Apple claims that Qualcomm owes it $145 million, and accuses the chipmaker of "abusing its clout" in the marketplace. Lastly, Apple claims that Qualcomm failed to follow through on its promise to license its standard essential patents at a low price. Qualcomm responded to the last charge by saying that Apple was given the opportunity to license these important patents at the same rate as every other company, but declined the offer.

source: Qualcomm

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25 Comments

1. Panzer

Posts: 282; Member since: May 13, 2016

I am trying to figure out which company I despise more. Is it that patent troll not paying its bill or is it the turd trying to corner the chip market.

20. cheetah2k

Posts: 2256; Member since: Jan 16, 2011

Intel have already cornered the chip market. Apple chooses to use Qualcomm patented technology. So they should pay. There is no if's, or but's.. its clear cut. Its just typical Apple avoiding paying. They do it on tax already. Now they're doing it on technology they choose to use.. If Apple can get away with it, then why should anyone care about Apple patents? Seems fair right?

2. Rampage_Taco

Posts: 1060; Member since: Jan 17, 2017

This is really turning into some middle school drama. Apple is telling their friends not to play nice with QC because of a nonbinding conversation the 2 companies had

5. TechieXP1969

Posts: 14967; Member since: Sep 25, 2013

Apple signed a contract...its binding until a court says otherwise.

10. Rampage_Taco

Posts: 1060; Member since: Jan 17, 2017

I was referring to Apples suit complaining about Qualcomm promising them lower prices on licensing their patents. Unless there was a legally binding contract, a personal promise is useless. All because Apple couldn't get a lower price on QC patents, they are making their manufacturers hold back on paying QC

3. MrElectrifyer

Posts: 3960; Member since: Oct 21, 2014

Not liking Qualcomm's stupidly anticompetitive move to monopolize the SOC market with their patents, but at the same time, not liking CrappIe's endless hypocrisy, so, this is a good move IMO...

6. TechieXP1969

Posts: 14967; Member since: Sep 25, 2013

But they have a right to charge whatever they want for their technology. If Apple doesn't like the cost, they should have never agreed to pay. Apple signed a contract to pay.

8. MrElectrifyer

Posts: 3960; Member since: Oct 21, 2014

That's their case against apple, which is due to just another one of apple's hypocritical douchebag moves. Their case against other chip makers like Intel and Samsung, is what's stupidly anticompetitive. It's not a matter of them asking too much like apple is hypocritically crying here, they're outright refusing to license their patents to other chip makers.

14. trojan_horse

Posts: 5868; Member since: May 06, 2016

"they're outright refusing to license their patents to other chip makers." Well, Qualcomm isn't obliged to license it's patents to companies. Just like if you invent a new type of cake, no one can force you to sell it to everyone who wants to buy it.

16. MrElectrifyer

Posts: 3960; Member since: Oct 21, 2014

Problem is, if Samsung is able to reproduce something similar even without Qualcomm's input, then Qualcomm would come back crying that Samsung infringed on their patent. Using your analogy, that's like me suing you for baking something similar to my cake even though you got no direct help from me...

17. trojan_horse

Posts: 5868; Member since: May 06, 2016

Alright, I get your point now.

22. TechieXP1969

Posts: 14967; Member since: Sep 25, 2013

So let them sue. As long as Smasung proves they didnt steal anything, it will be QC on a witch hunt. Let's be clear, I am not choosing Qualcomm over Apple or anyone. What I am saying is what the law says. You made a deal. You signed a contarct. You exchanged money and hardware. NOw lets compare this to a lease on an apratment. Landlords have been known to put questionable things in a lease. Even if they don't disclose everything, it is YOUR duty to read it. Understand what effect its gonna have on you living their. Even if the things are questionable, borderline illegal, or even if they are illegal; you you sign then you knowingly and willingly agree to what is said. You dont get to come back later and whine liek a little bitch about being cheated when you signed a deal to be cheated. If Apple is so smart, they would learn how to do this tuff themselves. You dont get to dictate any terms when you dont hold the cards. ITS CALLED BUSINESS. Apple who is just as much like a Mafia organization, shouldnt be whining when another Mafia organization holds all the cards. Liek I said, If I was an OEM and Apple called me and said dotn pay QC, I would drive right to Apple headquarters and demand to see Tim Cook and when we get in the room I'm putting my hands around his neck and tell him he better back off of he will be hanging by his neck from a tree. Its a business, You signed, so you live by your actions. If Apple feels QC is being unfair or to expensive, then why sign the deal. Sure I think we all buy things we feel are not worth what they cost, but you cant sue when you chose to buy it. Apple is being as you said the huge hypocrite here. NO SURPRISE! If Qualcomm isn't getting paid, and these companies are using their technology, they are the ones who will be in trouble. If a court says they need to lower the cost. Then Qualcomm can say find, we sell you nothing and if you see our stuff anyways, we will sue you until you stop or remove them from the market

21. TechieXP1969

Posts: 14967; Member since: Sep 25, 2013

I understand that. But they don't have too. If I create a technology, with my own money, my own hard work, with my equipment and my employees; I can choose to offer it or not. Apple lied in a court saying they would not sell their stuff to anyone. Samsung started they offer to buy Apple patents and Apple refused. Then Apple took many of them and did a deal with HTC. The court didn't force Apple to play fair, so the precedence has been set. If I own something, I don't care how much money you are willing to pay, if its not for sale; then its not for sale. Qualcomm is not holding the market hostage. If Apple or any OEM doesn't want to deal with Qualcomm they don't have too. Intel makes models that work on US networks, Samsung can source form them. Of Samsung can and has the ability to reverse engineer QC's hardware and find out how they accomplished whatever and find a way to do the same. Just like how Compaq figured out how to get around IBM's BIOS and make computers. The way to stop Apple is very simple. Since Apple likes to sue give them a good reason to do so. Every OEM who supplies any component to Apple, give Apple all their money back rip up the contract and say phuck you, and then let Apple die on the market when they cant get their products on the market. Then Apple can sue everyone, they can all sue Apple and the court can throw their hands up and say you all duke it out and Apple is the one who is gonna lose. FACT IT!!!! If you have so much money, and yet you can't make your own s**t, then you deserve what happens to you. Apple is a bully. And like all bullies, they will get what is coming to them and I hope I live to see the day Apple is destroyed. I'm not saying the company needs to go away. I live for the day when Apple is no longer and influence, they have no power, and they are scrambling for every last breathe to stay relevant. That day is very near. The iPad is all but dead. The Mac which in 30 years only has 130M users is also dead. Once the iPhone falls to less than 100M sales, Apple will be done if they don't come up with something else to steal or copy.

4. TechieXP1969

Posts: 14967; Member since: Sep 25, 2013

Qualcomm is gonna win, simply because Apple signed a deal. If Apple hadn't signed an agreed, then the story would be different. But when you agree to pay, then you should pay. If you feel the deal was bad, you shouldn't have signed it. But you can tell someone else not to pay, because you don't want too. That is wrong and Apple is gonna get itself into a huge legal issue. Then all OEM's who make stuff for Apple, should stop making whatever it is, and let Apple start losing loads of money. Gosh I wish I could be CEO of just one. I'd call Apple and say, I ether you deal with this dispute with Qualcomm, or we wont be making any of your crap. Then if Tim Cool threaten to sue...I be like due what you have too. But I won't pay you a dime if I lose and you better watch your back.

7. MrElectrifyer

Posts: 3960; Member since: Oct 21, 2014

Good thing you're not the CEO of one of them, you'd be getting yourself well prepped for a blackmail by saying that to Tim Crook...in the end, you'll merely be giving apple more leverage over your organization, achieving the total opposite of what you intended.

23. TechieXP1969

Posts: 14967; Member since: Sep 25, 2013

If I go down Tim Cook faggot @$$ will do down with me. I'm afraid of no mere man at all. Tim Cook is a douchebag and what Apple is doing is wrong. This isnt gonna play out the way Apple thinks. Every OEm in this market hates Apple. They on;y do business because APple is the only AmERICAN company in this market, that has substancial footprint and they all liek money. But see this is where they and you don't get it. They ALL have the power to destroy Apple, just like Microsoft could have. But instead of destroying Apple, Microsoft simply put Apple in check and says, if you want our help you are gonna gravel at our feet. Here is the contract...APPLE SINED ON THE DOTTED LINES. Now...since APple isnt paying, then you take the tech away. Without the tech, then Appel cant sell any products. Without products APple loses money. When Apple starts losing money Apple has to choice, go to court or start paying. Which one you think will come first? Because see, Apple cant prevent QC products from coming to market, because Qualcomm tech is goign into Apple's products. Trump isn't going to sign off on having APple products banned, so Qualcomm ha some last option. They tell the OEM, Apple isn't paying, you don't place another component with out tech inside another Apple product until you pay for it. By law, Qualcomm only has to filll an order that was already paid for, unles they return 100% of the money and request every thing be given back that si unused and they give back money basedon the unused portion. With APple havign no option for alternative componenets, Apple will be in big triuble. With no iPads or iPhone son the shlves, other OEM's liek Samsung, LG and others will reap the slaes benefits and once APple falls that hard, they wont be gettign back up anytime soom. The market has the power right now to kill Apple. The problem is Apple has one thing they want is money. But the fact is, with apple gone, other OEM's will need that stuff and will have easier access to it without Apple buying it all upon, so they all will make that same money they could have made form one OEM, by making it from many of them

25. TechieXP1969

Posts: 14967; Member since: Sep 25, 2013

I disagree. Because no company is too big to take down. Even if the story of David and Goliath isn't real, the principle of the story is. Nothing is to big, all you need is time, a plan of action and flawless execution. Apple Fortress of Solitude is not impenetrable. Because here is a fact...all the money in the world cannot prevent death...whether literally or figuratively. This is why I personally have shied away from Apple products. I buy them only now because my work requires them. But we are aimlessly working very hard to program our tools to work on Windows Phone and Android. We have sourced to major software engineers and our goal to to be done by summers end. Once that happens, we will be able to take out apps to any platform and they will work identical. I have sen many lawsuits in my day with tech companies. But as bad as Microsoft was back in the day, they weren't patent trolls, They simply came into the market and beat you at your own game and they won ever least one even against Apple. Samsung and others can do the same. They can relegate Apple to a quarantine state PERMANENTLY.

9. SYSTEM_LORD

Posts: 1168; Member since: Oct 05, 2015

Apple has no right to tell companies not to pay Qualcomm. Apple always tries to pay people as little as possible for their services to them on account of their massive sales. To think, the richest company in the world doesn't want to pay patent royalties, despite being a huge patent troll themselves. As much as I don't like the unfair practices that Qualcomm is conducting in the soc market, I don't like what apple is doing even less. I hope Qualcomm mops the courtroom floor with that pirate, Captain Cook.

11. Tech-shake

Posts: 213; Member since: Nov 14, 2016

As much as i hate Qualcomm, I can't agree with what apple is doing today. You can't just stop paying someone the debt you own them because you think you are paying too much. if it worked this way, no one will ever pay what they own to others!

12. PHYCLOPSH

Posts: 652; Member since: Jun 28, 2014

I say the judge throws them out of court like on a bad episode of Judge Mathis. "Get out my courtroom and settle it in the street 'cuz you both wasting my time acting like some punk a** b****es!.."

13. lyndon420

Posts: 6788; Member since: Jul 11, 2012

Apple not paying royalties is one thing, but telling other companies not to pay is another. I hope apple is willing to pay all court fees and damages that these OEM's will face if Qualcomm takes them to court. Like seriously...who is apple and why do they think they can dictate business practices to others ?!?!

18. tedkord

Posts: 17356; Member since: Jun 17, 2009

Even Apple not paying is wrong. It's also hypocritical, since they are arguing the royalty fee shouldn't be a percentage of the overall device profit, while arguing the exact opposite in other cases where they hold the patent.

15. trojan_horse

Posts: 5868; Member since: May 06, 2016

Qualcomm should get Apple's ass sued till kingdom come.

19. tedkord

Posts: 17356; Member since: Jun 17, 2009

It'll never happen, but realistically the ITC should enforce an import ban on every product using the patent from every company not paying, and the Russian puppet should uphold it.

24. PhoneCritic

Posts: 1354; Member since: Oct 05, 2011

Okay Now it's on.. Two American companies -QC and Apple - both Titans of their respective areas. Now it is okay if Apple refuses to pay QC but to have other companies it does business with, Who have signed contracts with QC, to stop paying QC is a bit much. For the courts this should be simple. "No Apple you cannot do this - they have binding contracts with QC. Its one thing for you to want to challenge the contract but to tell other firms to not pay what they owe is not borderline monopolistic but is monopolistic"- if Apple is threatening these firms then the Justice department needs to step in and begin a anti-trust investigation and Because we are talking about two local firms then there should be no foreign repercussions or interference to deal with.

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