Apple now withholding royalty payments to Qualcomm as dispute escalates | iLounge News

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Apple now withholding royalty payments to Qualcomm as dispute escalates

Apple has now suspended all licensing payments to Qualcomm related to the iPhone amidst the legal dispute between the two companies, Bloomberg reports. The battle between the two tech firms began earlier this year when Apple filed lawsuits accusing Qualcomm of withholding $1 billion in patent royalties, allegedly as a punishment in response to Apple’s cooperation with Korean antitrust regulators. A subsequent lawsuit filed in Beijing by Apple claimed that Qualcomm had abused its position in the chip industry and failed to deliver on its promises to inexpensively license “standard essential patents.” Qualcomm followed those filings up its own countersuit earlier this month, accusing Apple of breaching its contract and asking for an unspecified amount in damages.

According to Qualcomm, Apple has now stated that it will be withholding all future payments until the legal matters between the two companies are resolved. Qualcomm general counsel Don Rosenberg added that “While Apple has acknowledged that payment is owed for the use of Qualcomm’s valuable intellectual property, it nevertheless continues to interfere with our contracts,” and that “Apple has now unilaterally declared the contract terms unacceptable; the same terms that have applied to iPhones and cellular-enabled iPads for a decade.” In a statement to The Financial Times, an Apple spokesperson responded “We’ve been trying to reach a licensing agreement with Qualcomm for more than five years but they have refused to negotiate fair terms. Without an agreed-upon rate to determine how much is owed, we have suspended payments until the correct amount can be determined by the court. As we’ve said before, Qualcomm’s demands are unreasonable and they have been charging higher rates based on our innovation, not their own.”

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