Apple v. Qualcomm Lawsuit News, Update: Apple Files Two More Complaints in China; Qualcomm Vows to Defend Its Business Model

By Georgia Gana, Christian Post Contributor Friday, January 27, 2017

Apple has taken its issues with Qualcomm's business practices to China where the Cupertino-based tech giant recently filed two more lawsuits against the multinational chipmaker.

According to Reuters, Apple's Chinese subsidiary has filed complaints against Qualcomm and is seeking damages worth 1 billion yuan, which is about $145.32 million, for allegedly abusing its clout in the chip industry. The second lawsuit is requesting Beijing's Intellectual Property Court to weigh in on Qualcomm's supposed failure to "live up to promises made to license 'standard essential patents' broadly and inexpensively."

This follows the $1 billion lawsuit Apple filed last week in the U.S. District Court for the Southern District of California. According to the 104-page lawsuit, Apple claims that Qualcomm engages in "illegal business practices" as it promulgates a monopolistic business model.

This complaint is said to be rooted in Qualcomm's protocol in which other companies wanting to use their chips will have to obtain licenses for its cellular patents. Apple has been relying on Qualcomm for the modem chips that go into their mobile devices.

In turn, Apple and other suppliers like Samsung contribute to over 40 percent of Qualcomm's revenue stream.

"For many years Qualcomm has unfairly insisted on charging royalties for technologies they have nothing to do with. The more Apple innovates with unique features such as TouchID, advanced displays, and cameras, to name just a few, the more money Qualcomm collects for no reason and the more expensive it becomes for Apple to fund these innovations," said Apple in a statement sent to Business Insider.

Qualcomm, for its part, does not seem to be backing out from this brewing war against Apple.

In response to the first lawsuit, Qualcomm vice president Don Rosenberg said that Apple's claims were "baseless" and that they are welcoming the opportunity to hear their "meritless claims" in court.

On Wednesday, Qualcomm held its earnings call for the first quarter of the 2017 fiscal year and, understandably, majority of the time was spent discussing Apple's complaints.

With regard to Apple's multiple lawsuits, Steve Mollenkopf, CEO of Qualcomm, had this to say: "As we have done in the past, we will vigorously defend our business model and the value of a portfolio of technologies that has been so instrumental in the success of the mobile communications industry."