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January 21, 2017

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

by John_A

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”.

“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.

Tags: lawsuit, Qualcomm
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