Two technology giants, Apple and Qualcomm, are waging an intense battle in court. And the last episode of it happened today: the manufacturer of the Snapdragon processors released a note (pdf) accusing the manufacturer of iPhones of not paying the licensing fees of Qualcomm technologies to the companies with which it has a contract.
As Engadget explains, smartphone manufacturers typically license Qualcomm’s technologies directly with the company. Apple, however, does things differently: it partners with companies that make cell phones and have licenses for Qualcomm’s technologies (such as Foxconn), and then pay those companies a fee that includes that amount for licensing.
I must, I do not deny
What Qualcomm says, therefore, is that Apple would be giving a ‘default’ on its iPhone manufacturing partners, refusing to pay them that licensing fee. Qualcomm’s note denounces this: “Apple is interfering in an inappropriate manner with our long-standing agreements with our licensees,” said the company’s executive vice president, Don Rosenberg.
“These licensing agreements remain valid and enforceable.Although Apple recognizes that it owes payment to Qualcomm for its use of the company’s valuable intellectual property, it still continues to interfere with our contracts,” he continued.
At least in financial terms, Qualcomm’s revolt is justifiable: because of Apple’s stance, the processor maker had to revise its revenue estimates for the second quarter of 2017. Before that, Qualcomm estimated, for the period, a revenue From US $ 5.3 billion to the US $ 6.1 billion; Now, that precision has dropped to $ 4.8 billion to $ 5.6 billion.
The legal battle between the two companies began in January 2017, when Apple filed a billionaire lawsuit against Qualcomm for unfair royalties. Tim Cook’s company said that the value they paid to Qualcomm in licensing for the use of their technologies in their devices was five times greater than the value they paid to all the other companies whose technologies they licensed together.
Although they acknowledged that this payment should happen, Apple required Qualcomm to charge a fair value. In the words of Apple CEO, “we saw no other way to solve the problem.”
But Qualcomm did not let it down. In April, the company retaliated Apple’s own lawsuit, accusing the company of iPhones of breaking deals and providing false statements to regulatory authorities in various parts of the world. The chipmaker has also accused Apple of limiting the power of its components to match them to others in an attempt to reduce its licensing costs.