In its ongoing lawsuit against Apple and its suppliers who have stopped paying it royalties on the Cupertino company’s order, Qualcomm has filed an injunction asking its licensees to continue paying it royalties.
The company has also updated one of its lawsuit with more evidence that Apple is interfering with the company’s contracts and agreements with other companies.
“We are confident that our contracts will be found valid and enforceable but in the interim it is only fair and equitable that our licensees pay for the property they are using,” Qualcomm general counsel Don Rosenberg said in a statement to Axios.
Qualcomm says by withholding billions of dollars in royalty payments, Apple hopes that the litigation eventually becomes unbearable for Qualcomm and it is forced to make a settlement outside of the court. Thus, Qualcomm wants that its suppliers continue paying it royalties throughout the litigation process.
Apple first filed a billion dollar lawsuit against Qualcomm in January after an FTC complaint. Qualcomm first called the Cupertino company’s claims baseless and eventually proceeded to countersue the company. It is now even seeking an import ban on the iPhones in the US, which would tremendously hurt Apple’s sales. The chipmaker also said that Apple is intentionally not using its modem to its fullest potential as to keep feature parity with the inferior Intel modem used by the company in certain iPhone variants. The lack of royalty payments from Apple led Qualcomm to cut its profit forecast for the ongoing quarter. Things went from bad to worse for Qualcomm as four of Apple’s key suppliers — Foxconn, Wistron, Pegatron, and Compal Electronics — also went ahead and stopped paying royalties to the chip maker on the instruction of Apple. This led Qualcomm to sue them as well.
This legal battle between Qualcomm and Apple is only set to become more intense in the coming months, and it will be interesting to see what the final outcome of this lawsuit turns out to be.[Via Axios]