Apple sues Qualcomm for nearly $1 billion

A new year brings new lawsuits for the chipset company. (Source: Qualcomm)

Qualcomm is embroiled once again in allegations of excessive licensing fees that allegedly discourage innovation and make consumers pay higher prices for their phones and tablets.

Isaac Brown, 01/21/2017

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Apple is the latest entity to file a lawsuit against Qualcomm, accusing the chip maker of “charging royalties for technologies they have nothing to do with.” Apple’s full statement says that even though Qualcomm is one of many companies that 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.”

They added that Qualcomm also attempted to retaliate against Apple by withholding $1 billion when they cooperated with Korean antitrust regulators investigating Qualcomm. Apple is seeking nearly $1 billion as compensation.

Qualcomm has flatly repudiated these claims. Qualcomm Executive Vice President and General Counsel Don Rosenberg says that Apple has "intentionally mischaracterized" their agreements and negotiations.

This latest development comes only a few days after the FTC filed a lawsuit against Qualcomm. The FTC’s court filing accuses the San Diego-based company of engaging in “exclusionary conduct” that discourages innovation and makes consumers pay higher prices for cell phones and tablets.

Qualcomm is no stranger to costly lawsuits relating to their patent licensing practices. A South Korean lawsuit in December ordered the chipset company to pay a fine of $854 million, and Qualcomm also faced a fine of $954 million earlier in the year in China.