Qualcomm Calls Apple's Claims 'Baseless' in Response to $1 Billion Lawsuit

Following news yesterday that Apple has filed suit against LTE modem supplier Qualcomm for engaging in anticompetitive licensing practices, the chipmaker hit back on Sunday by calling Apple's claims "baseless" and accusing it of "encouraging regulatory attacks".

Apple shared a statement with several news sites on Friday announcing the lawsuit, which argued that Qualcomm used its position as the sole supplier of a key iPhone component to drive up patent licensing fees. This morning Qualcomm responded in a statement on its website in which it claimed that Apple "intentionally mischaracterized our agreements and negotiations".

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"While we are still in the process of reviewing the complaint in detail, it is quite clear that Apple's claims are baseless. Apple has intentionally mischaracterized our agreements and negotiations, as well as the enormity and value of the technology we have invented, contributed and shared with all mobile device makers through our licensing program. Apple has been actively encouraging regulatory attacks on Qualcomm's business in various jurisdictions around the world, as reflected in the recent KFTC decision and FTC complaint, by misrepresenting facts and withholding information. We welcome the opportunity to have these meritless claims heard in court where we will be entitled to full discovery of Apple's practices and a robust examination of the merits," said Don Rosenberg, executive vice president and general counsel, Qualcomm Incorporated.

Qualcomm was the sole supplier of LTE modems used in iPhones up until 2016, when Intel also began providing the component with the launch of the iPhone 7 and iPhone 7 Plus. Apple claims Qualcomm forced it to use the LTE chips and pay back a percentage of the selling price of the phone in return for access to its patents.

Apple wants $1 billion in rebate payments, which were withheld by Qualcomm after Apple became involved in an antitrust investigation against the company in South Korea.

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Top Rated Comments

Scottsoapbox Avatar
96 months ago
Apple likes bullying suppliers in negotiations.
Apple dislikes it when the supplier can bully them.
Score: 17 Votes (Like | Disagree)
tooltalk Avatar
96 months ago
Sounds like Trump needs to pull troops from South Korea.
It would in a good way to end any competition against American companies and sort of force US companies to bring their manufacturing back to our soil.

Please take this light heartedly.
a contract dispute between two US companies. It's all Koreans' fault.
Score: 8 Votes (Like | Disagree)
Kabeyun Avatar
96 months ago
Of course they did. We don't need a headline for that. Or did anyone expect them to say, "Ooh, sorry, our bad. Where's the checkbook?"

Sometimes I thing MR actually wants ill-informed threads to spiral out of control. Here comes another one.
Score: 5 Votes (Like | Disagree)
palmerc Avatar
96 months ago
Tim Crook, the CEO of one most profitable companies, doing his thing to low ball or get a free hand out from his suppliers. A company that sues others a billion dollars for petty rectangle with rounded corners but unwilling to pay Qualcomm for the engineering that goes into building the best radio technologies.
Really? Tim Crook?

Apple isn't alone, Qualcomm has been accused of anti-competitive practices by the FTC ('https://www.nytimes.com/2017/01/17/business/qualcomm-accused-of-anticompetitive-practices-by-ftc.html?_r=0') and if they aren't already under investigation by the EU, they soon will be.
Score: 4 Votes (Like | Disagree)
citysnaps Avatar
96 months ago
Tim Crook, the CEO of one the most profitable companies, doing his thing to low ball or get a free hand out from his suppliers. A company that sues others a billion dollars for petty rectangle with rounded corners but unwilling to pay Qualcomm for the engineering that goes into building the best radio technologies.
"Tim Crook"

How juvenile, and so very adorable. That alone makes your post safely ignorable.
Score: 3 Votes (Like | Disagree)
mi7chy Avatar
96 months ago
Tim Crook, the CEO of one the most profitable companies, doing his thing to low ball or get a free hand out from his suppliers. A company that sues others a billion dollars for petty rectangle with rounded corners but unwilling to pay Qualcomm for the engineering that goes into building the best radio technologies.
Score: 3 Votes (Like | Disagree)