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News and Trends / Apple

Apple Sues Qualcomm for $1 Billion in Royalty Dispute

'For many years Qualcomm has unfairly insisted on charging royalties for technologies they have nothing to do with.'
Senior Reporter at Engadget
2 min read
This story originally appeared on Engadget

Apple has filed a $1 billion lawsuit against Qualcomm, claiming that for many years, the chip manufacturer has "unfairly insisted on charging royalties for technologies they have nothing to do with," CNBC reports.

This marks the end of a rough week for Qualcomm: The Federal Trade Commission last Tuesday sued the company for its alleged use of monopolistic and exclusionary tactics within the baseband processor market. Apple's lawsuit piggybacks off of these claims. For reference, baseband processors are the chips that power network connectivity in mobile devices.

According to CNBC, Apple claims Qualcomm charges five times more for its patents than all of the other licensors it does business with combined. The company also argues that Qualcomm withheld nearly $1 billion in payments when Apple cooperated with South Korean authorities as it investigated the company's unfair trade practices -- precisely what the U.S. and Apple are going to court over now. In December, South Korean regulators fined Qualcomm a record $854 million for abusing its power in the smartphone chip market and overcharging device makers.

"We are extremely disappointed in the way Qualcomm is conducting its business with us and unfortunately after years of disagreement over what constitutes a fair and reasonable royalty we have no choice left but to turn to the courts," Apple says in a statement to CNBC.

We've reached out to Qualcomm for comment and will update this story as we hear back.

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