Apple Inc. heightened its legal offense against San
Diego-based-company, Qualcomm, and saying in court that its chip patents are
invalid and its business model breaches the patent law.
Attack Can Weaken
Qualcomm
Apple said that nearly a dozen patents of Qualcomm were
recognized to be invalid as there are discrepancies with the existing patents.
Apple also claims that the patents are not really crucial for cellular
communications.
If Apple went successful on this, the attack can weaken a
central tenet of Qualcomm’s business pattern.
Apple Was Said to
Violate Contract
Back in January, Apple sued Qualcomm, claiming that the
latter had improperly held back $1 billion in rebates after Apple aided Korean
Investigators investigate on the chip maker’s business practices.
No License, No Chips
Qualcomm has a practice of requiring customers to sign patent
license agreements first before being able to purchase chips. The “no license,
no chips” policy of Qualcomm gives it an advantage to take a percentage of the
total selling price of the iPhone in place of the chips that allows the phones
to connect to cellular data networks.
Apple is arguing that for the intellectual property and
products of Qualcomm, it is only entitled to a one-time remuneration. That
means that only one between the patent license and chip should be charged by
Qualcomm. However, the current situation involves the chip maker charging both.
Apple sees it as an unfair practice for the use of its technology.
Apple Requests to Drop
the Charges
Qualcomm filed charges against Foxconn Technology Group and
three other contractors that assemble the iPhone and are also buyers of chips
from Qualcomm, since there is no issue with such against the existing contract.
The court charges must solely be between them (Apple) and Qualcomm.
Qualcomm’s Side
Since Qualcomm is the major supplier for chips and patents
broadly used for smartphones, it also accused Apple of misrepresenting its
business. It also has a present concern with regard to the royalty payments for
the technology used in iPads and iPhones.
However, Qualcomm’s Executive Chairman, Paul Jacobs is
accustomed to legal conflicts. He further added that from 2005 to 2014 he
encountered parallel fights.
“People want to get around, they see intellectual property as
a cost in their billable materials, and they just want to pay less. But for us,
we want to continue to drive technology forward, and importantly, we want to
spread it across a very broad ecosystem as well,” Jacobs said in a statement.
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Apple Intensifies Spat against Qualcomm
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