Qualcomm Sues Apple Contract Manufacturers

Qualcomm has sued Apple contract manufacturers Foxconn, Pegatron, Wistron, and Compal for withholding royalties, reports Reuters.

In January, Apple sued Qualcomm for $1 billion alleging that the company has been 'charging royalties for technologies they have nothing to do with'. The lawsuit follows one from the FTC which charges Qualcomm with using anticompetitive tactics to maintain its monopoly in the supply of baseband processors used in cellular phones. Apple said Qualcomm is withholding 'nearly $1 billion in payments from Apple as retaliation for responding truthfully to law enforcement agencies investigating them.'

Qualcomm countersued Apple in April accusing the company of failing 'to engage in good faith negotiations for a license to Qualcomm’s 3G and 4G standard essential patents on fair, reasonable and non-discriminatory terms'.


Qualcomm has now taken another step and sued manufacturers that have followed Apple's request to withhold royalties to Qualcomm until the dispute is solved.

"While not disputing their contractual obligations to pay for the use of Qualcomm's inventions, the manufacturers say they must follow Apple's instructions not to pay," Qualcomm said in a statement on Wednesday.

Apple has promised to indemnify the manufacturers for any damages resulting from breaching their agreements with Qualcomm.

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