News about legal battles goes around the grapevine even faster than innovations in the Silicon Valley. And if a tech giant like Apple Inc. is involved, then the news will definitely grab eyeballs. The Qualcomm Apple lawsuit is undergoing trial for a while now due to patent issues between the two manufacturers. The patent battle began in January this year when Apple filed a lawsuit accusing Qualcomm Inc. of overcharging the tech giant for chips. Not only this but apparently Qualcomm also refused to pay $1 billion in rebates to the company. This became an offense as the U.S. government also pointed fingers at the chipmaker for faulty production. According to the government report, Qualcomm took the help of anticompetitive tactics in order to retain its monopoly in the smartphone market. But now the chipmaker has come up with another accusation to retaliate the charges.
It is a basic tendency that be it a human or an organization, it will get defensive in case of an accusation. This is what happened with Qualcomm as well. The chipmaker is sailing in deep waters as not only has a tech giant like Apple filed a lawsuit, but even the U.S. Government is scrutinizing the organization. This is because using unethical ways to maintain a company’s monopoly among key semiconductors of smartphones is a legal offense. Therefore in order to draw the attention elsewhere, Qualcomm has sued four companies on the pretext of not paying royalties.
Relation between these companies and the Qualcomm Apple lawsuit
It seems like the Qualcomm Apple lawsuit is more of a personal battle than a legal one. This can be assumed as Qualcomm called the suit by Apple baseless. It further stated that this was a part of the regulatory attacks the iPhone maker made on the company. Adding to this, Qualcomm made a complaint saying that Apple has instructed four contract manufacturers to withhold their payment to the chipmaker. This payment was in terms of the royalty that the companies owed Qualcomm. Apple also assured these companies that it will compensate all kinds of financial damages as a breach of agreement with the chipmaker.
The complaint has been filed in the United States District Court for the Southern District of California. The companies enlisted in this complaint are Pegatron, Wistron, Foxconn, and Compal Electronics. These companies are supposedly due for paying licensing fees to Qualcomm. The catch here is that the agreement between these companies and the chipmaker took place even before the first iPhone was out. These manufacturers are paying licensing fees to Qualcomm for non-Apple products as well. Thus the chipmaker firmly states that Apple can’t intervene in this agreement. One can't determine if the Qualcomm Apple lawsuit is a blame game or a legal battle. Currently, all we can say is that this legal battle will take a while to subside.