Apple Files $1B Lawsuit Against iPhone Partner Qualcomm

Apple has filed a $1 Billion lawsuit against Qualcomm, the company who makes iPhone’s baseband processor, claiming that they were pressured to exclusively use Qualcomm’s modem technology exclusively for a five year period ending in 2016. This lawsuit is directly related to the US Federal Trade Commision’s anti-trust filing against Qualcomm, alleging the use of strong-arm tactics to collect exorbitant patent royalties, even on devices that have no Qualcomm components. Apple paints Qualcomm as a “patent troll” in the lawsuit, accusing them of withholding nearly $1B in payments as an act of corporate revenge against Apple since they cooperated with law-enforcement agencies tasked with investigating the chipmaker.

In 2016, Qualcomm held 65% of the market for mobile baseband modems and 50% of the revenue, but this will be drastically affected due to the lawsuit. Apple has already begun using competitor’s technologies in the iPhone 7 and Qualcomm is expected to be completely out of the door for the iPhone 8 to be released in fall 2017. Qualcomm executive Vice President Don Rosenberg as dismissed Apple’s accusations as “baseless” and is enthusiastic about the case going to court since it will involve full discovery of Apple’s practices and they are confident that the truth is on their side.

Qualcomm issued a statement to Mashable about the lawsuit:

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.