Ap­ple, Qual­comm at log­ger­heads over chips

The Star Early Edition - - BUSINESS REPORT - Reuters

AP­PLE broad­ened a le­gal at­tack on Qual­comm, ar­gu­ing to a US fed­eral court that li­cence agree­ments that se­cure the chip maker a cut of every iPhone man­u­fac­tured were in­valid.

If suc­cess­ful, Ap­ple’s at­tack would un­der­mine a core tenet of Qual­comm’s busi­ness model. “Ap­ple is try­ing to dis­tract from the fact that it has made mis­lead­ing state­ments about the com­par­a­tive per­for­mance of its prod­ucts, and threat­ened Qual­comm not to dis­close the truth,” Don Rosen­berg, ex­ec­u­tive vice pres­i­dent and gen­eral coun­sel of Qual­comm, said.

Ap­ple sued San Diego-based Qual­comm in Jan­uary, say­ing the chip maker im­prop­erly with­held $1 bil­lion (R13.02bn) in re­bates.

On Tues­day Ap­ple took aim at Qual­comm’s prac­tice of re­quir­ing cus­tomers to sign patent li­cence agree­ments be­fore pur­chas­ing chips, known in the in­dus­try as “no li­cence, no chips.” The li­cence al­lows Qual­comm to take a per­cent­age of the over­all sell­ing price for the iPhone in ex­change for sup­ply­ing the mo­dem chips.

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