Qualcomm sues Apple over software licensing, sharing code with Intel

03 November, 2017, 00:32 | Author: Lorena Waters

The new lawsuit is the latest escalation of a long-running legal battle between the two companies. The lawsuit was filed on Wednesday at the California State Court in San Diego. "Apple copied an Intel engineer in the email for information". Qualcomm is now the largest manufacturer of chips for mobile devices by far, but that could change in favor of companies like Intel and MediaTek if Apple decides to walk away for good.

Reuters reported earlier this week that Apple would drop Qualcomm's chips altogether from its iPhones and iPads beginning next year.

Qualcomm claim that Apple hasn't protected their software sufficiently, which they legally agreed to, and say Apple aren't allowing for a proper audit to review how the iPhone handles their software. But, recent news reports from The Wall Street Journal suggest Apple are designing products which don't require Qualcomm components, which would free Apple from Qualcomm's influence.

Apple uses Qualcomm modems in some of its iPhones and added Intel to the supply chain with the iPhone 7 models.

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In July Intel filed a statement with ITC claiming Qualcomm is trying to Force them out of the modem business with Apple.

According to law firm, Bernstein Litowitz Berger & Grossmann, which serves as lead counsel for the lawsuit, "Qualcomm's clear-cut anti-competitive practices dealt a swift and severe blow to the value of the company's shares, causing Qualcomm's stock price to plummet 33 percent during the class period, erasing over $32 billion in shareholder value".

Qualcomm also put the negative results down to another dispute with a licensee, who "underpaid royalties due in Q2 of fiscal 2017 and did not report or pay royalties due in Q3 and Q4".

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