Qualcomm Sues Apple Over Breach Of Contract On Software
Qualcomm has filed a lawsuit against Apple alleging that the iPhone maker failed to stick to agreed-upon software license terms with a view to assisting rival chipmaker Intel. The lawsuit was filed Wednesday in San Diego, California.
According to Qualcomm Apple also refused to allow an audit in order to determine how the chipmaker’s software was being handled by the iPhone maker. The lawsuit further alleges that Apple requested from Qualcomm proprietary information via email and an engineer from Intel was included in the distribution list.
Data download technology
Additionally the plaintiff claims that an Apple engineer assigned to work with a rival of the chipmaker requested a colleague to ask for information on data download technology from the chipmaker. Qualcomm added that this was a breach of the contract the chipmaker signed with Apple as it was stipulated that Apple engineers collaborating with Qualcomm would not exchange details concerning its chips with Apple engineers assigned to work with Intel on competing chips.
This is the latest front that Qualcomm has opened in its ongoing legal feud with Apple where the two are embroiled in a fight over the technology licensing fees which the chipmaker charges on patents that the iPhone maker uses in its smartphone system. Apple has accused Qualcomm of exorbitant charges and abusing its market dominance by making it hard for rivals to compete.
Qualcomm, on the other hand, has argued that the Cupertino, California-based tech giant has not been honest with regulators and has lied in order to bully the chipmaker into lowering fees. The chips that Qualcomm provides Apple with are used in connecting smartphones to cellular networks. Apple recently added Intel to its list of suppliers with some versions of newer iPhones possessing the modem chips from Qualcomm’s rival.
Qualcomm’s suit against Apple comes in the wake of reports emerging which indicate that the largest company in the world by market capitalization is developing iPads and iPhones slated for release next year which don’t use the chipmaker’s components. Should Apple go ahead and completely exclude Qualcomm from its list of chip suppliers, revenues of Qualcomm would decline by around 7.5%. Apple’s plans are however still at a preliminary stage and could change.