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Qualcomm files new suit against Apple for breach of contract
03 November 2017, 12:32 | Gretchen Simon
Qualcomm alleges in the latest suit that Apple failed to protect the chipmaker's software and isn't allowing an audit to review how the iPhone maker handles the software, an obligation that Qualcomm says is included in their contract.
As Apple is gets ready to hold their Fiscal Q4 Results financial conference, the news of Qualcomm Incsuing Apple Inc again hits the wire.
Bloomberg reports that Qualcomm (NASDAQ:QCOM) filed a new lawsuit against Apple (NASDAQ:AAPL) yesterday accusing the iPhone maker of using its chip software access to benefit Intel (NASDAQ:INTC). Apple's decision about next year's products comes after the San Diego-based Qualcomm withheld software needed to test chips in prototypes, the Wall Street Journalreported.
The lawsuit also claims Apple did little to stop the valuable Qualcomm information from being shared with Apple engineers who were working with Intel.
Qualcomm's latest move is part of its countersuit against the antitrust claims Apple filed against it earlier this year.
"Qualcomm alleged that in July, Apple emailed Qualcomm to request 'highly confidential" information about how its chips work on an unnamed wireless carrier's network.
Qualcomm CEO Steve Mollenkopf suggested that the company would likely settle with Apple out of court and it could be a situation "where a solution just appears".
As things now stand, Apple utilizes chips from Qualcomm and Intel, so suitable terms must be agreed before they can continue with their mutually beneficial collaboration. The escalating dispute over technology licensing fees stems from Apple's initial accusation that Qualcomm charges too much, and unfairly leverages its strong market position.
If Qualcomm loses that business, it would cut the company's revenue by about 7.5 percent, Raymond James & Associates estimates.
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