May 06, 2017 11:59 AM EDT
The known legal dispute between Apple and Qualcomm started due to the San Diego-based company's claimed of "unfairly” charging royalties that don't have anything to do with them. However, as both tech firms exchange attacks, the issue between them was reported to have worsened.
According to Forbes, Qualcomm and Apple’s dispute began when the Cupertino-based company filed a lawsuit against the chip-making company. The latter company stated that they filed the lawsuit because they are paying royalties that are more than enough.
With that said, Apple explained that they are negotiating licensing agreements with the San Diego-based company. But the chipset producing company doesn’t want to negotiate “fair terms.” Nonetheless, the legal dispute between the two companies worsens as Apple decided to stop paying royalties/license fees to Qualcomm.
Furthermore, tech analyst Patrick Moorhead stated that Apple’s move was to make their company have the best experience. “They believe to have the best experience, they have to have control over all the chips. For Apple to develop their own modem, they would still have to pay license fees to Qualcomm as well as to Nokia and Ericsson,” he added.
The Register then reported that the issue between the two companies gets uglier as Qualcomm seeks an iPhone import ban in the United States. The chipset maker was mentioned to ask the US International Trade Commission to stop importing iPhones due to Apple violating its patent.
"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," an Apple spokesman said in a statement. On the other hand, "Apple has now unilaterally declared the contract terms unacceptable; the same terms that have applied to iPhones and cellular-enabled iPads for a decade," Qualcomm general counsel Don Rosenberg stated.
Qualcomm is known to be a major supplier to Apple and Samsung Electronics Co Ltd, both the companies were mentioned to provide the 40 percent revenue of the chipset maker in its latest fiscal year. Apple concluded that they will resume their payment with the company as long as the issue would be resolved.
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