Qualcomm Countersues Apple Over Patent Royalties Dispute; Says Modem Inside iPhone 7 Not Used to Full Capacity

Qualcomm today announced that it has countersued Apple in the U.S. District Court for the Southern District of California. The move comes three months after Apple first sued Qualcomm for $1 billion over a variety of patent royalties dispute. The chip maker had then called Apple’s claims as baseless

Now, Qualcomm says in its filing that Apple has failed to engage in “good faith negotiations for a license to Qualcomm’s 3G and 4G standard essential patents” on reasonable terms. It also says that Apple has breached agreements, interfered with Qualcomm’s longstanding agreements with ODMs who manufacture iPhones and iPads for Apple and encouraged regulatory attacks on the company by making false statements and facts.

Over the last ten years, Apple has played a significant role in bringing the benefits of mobile technology to consumers with its popular products and services. But Apple could not have built the incredible iPhone franchise that has made it the most profitable company in the world, capturing over 90 percent of smartphone profits, without relying upon Qualcomm’s fundamental cellular technologies. Now, after a decade of historic growth, Apple refuses to acknowledge the well established and continuing value of those technologies. It has launched a global attack on Qualcomm and is attempting to use its enormous market power to coerce unfair and unreasonable license terms from Qualcomm. We intend to vigorously defend our business model, and pursue our right to protect and receive fair value for our technological contributions to the industry.

Interestingly, Qualcomm also says that Apple chose not to use its modem inside the iPhone 7 to its full capacity to misrepresent the performance difference between the Qualcomm modem and the one supplied from its competitor. Apple also threatened Qualcomm from not making any public comparisons about the superior performance of its modem inside the iPhone 7. Despite Apple not using Qualcomm’s modem inside the iPhone 7 to its full capacity, testing had revealed that the Intel modem was significantly slower than the Qualcomm modem.

Qualcomm is now seeking damages from Apple for going back on several promises it made in various agreements and to enjoin Apple from further interfering in various agreements that Qualcomm has with various iPhone and iPad suppliers.

[Via Qualcomm]