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Apple Sues Qualcomm, Seeks $1 Billion Damages

Apple has filed a lawsuit against Qualcomm seeking $1 billion damages, and accusing the Qualcomm of monopolizing the market for computer chips for wireless devices. According to Apple, According to Apple, Qualcomm “has unfairly insisted on charging royalties for technologies they have nothing to do with.”

In recent months, regulators in different countries have criticized Qualcomm for its patent licensing practices. In December, South Korea fined the San Diego-based chipmaker $890 million for its monopolistic practices.

According to Apple, due to an agreement with Qualcomm, it is unable to take any steps to challenge the business model of Qualcomm. The iPhone maker says when it complied with demands from South Korean regulators, Qualcomm termed it as violation of the agreement, withholding money that was to be paid to Apple in royalty rebates.

“The more Apple innovates with unique features such as TouchID, advanced displays, and cameras, to name just a few, the more money Qualcomm collects for no reason and the more expensive it becomes for Apple to fund these innovations,” Apple said in a statement.

“Qualcomm built its business on older, legacy, standards but reinforces its dominance through exclusionary tactics and excessive royalties. Despite being just one of over a dozen companies who contributed to basic cellular standards, Qualcomm insists on charging Apple at least five times more in payments than all the other cellular patent licensors we have agreements with combined.”

Apple is now seeking $1 billion from chipmaker and also challenging the validity of some of Qualcomm patents for wireless technologies.

In a statement, Qualcomm general counsel Don Rosenberg wrote:

“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.”