Los Angeles Times

Qualcomm accuses Apple of theft

Chipmaker says the iPhone maker took trade secrets to Intel.

- By Mike Freeman mike.freeman@sduniontri­bune.com Freeman writes for the San Diego Union-Tribune.

Qualcomm has fired another salvo in its legal war with Apple, this time accusing the iPhone maker of stealing proprietar­y software and providing it to archrival Intel so that it could develop competitiv­e cellular modem chips for smartphone­s.

Qualcomm filed a motion Monday in San Diego County Superior Court to allow it to amend a pending breach-of-contract lawsuit against Apple to include new claims of misuse of trade secrets, among other things.

The proposed amendment stems from revelation­s uncovered when the companies exchanged informatio­n in the discovery process of the lawsuit, filed in November.

“Apple has engaged in a years-long campaign of false promises, stealth and subterfuge designed to steal Qualcomm’s confidenti­al informatio­n and trade secrets for the purpose of improving the performanc­e and accelerati­ng time to market of lower-quality modem chipsets, including those developed by Intel,” according to Qualcomm’s proposed amended complaint.

Apple responded by reiteratin­g a statement it made last year: “Qualcomm’s illegal business practices are harming Apple and the entire industry. They supply us with a single connectivi­ty component, but for years have been demanding a percentage of the total cost of our products — effectivel­y taxing Apple’s innovation.”

Apple has filed a motion to compel Qualcomm to show evidence that substantia­tes its allegation­s.

Qualcomm and Apple are fighting a multi-front legal war over patents and other issues. Several court cases in the U.S., Germany, China and elsewhere are slated for trials or significan­t hearings this year and early next.

Apple used Qualcomm cellular chips in iPhones exclusivel­y from 2011 to 2016. It then split its modem orders for iPhones between Intel and Qualcomm.

This year, Apple dropped Qualcomm completely and is using only Intel chips for the latest iPhone releases.

Qualcomm sued Apple in November over audit rights to monitor who received access to its software — including its source code — that it provided Apple so that the company could better design iPhones with Qualcomm chips.

According to Qualcomm, the two companies entered into strict confidenti­ality, access and audit agreements to protect Qualcomm’s software code and software tools.

But when Intel cellular modems did not perform as well as Qualcomm modems, Qualcomm contends, Apple used its proprietar­y software to help Intel.

“Once again Apple has flouted its contractua­l commitment­s and misappropr­iated Qualcomm’s property rights in an effort to improve its performanc­e and increase its profits,” said Don Rosenberg, Qualcomm’s general counsel. “The code, tools and design details of Qualcomm’s modem technology, which are the subjects of this litigation, represent the genius and labors of our dedicated engineers. We have only the rule of law to protect them.”

Qualcomm is seeking unspecifie­d damages, the return of its intellectu­al property and possible injunction­s. The original lawsuit is set for trial in April. Qualcomm wants to amend its complaint but keep the trial schedule.

A hearing on the request is scheduled for Nov. 30.

 ?? Justin Sullivan Getty Images ?? APPLE HAS filed a motion to compel Qualcomm to show evidence that substantia­tes its allegation­s. Above, Apple marketing chief Phil Schiller at a presentati­on in Cupertino, Calif., this month.
Justin Sullivan Getty Images APPLE HAS filed a motion to compel Qualcomm to show evidence that substantia­tes its allegation­s. Above, Apple marketing chief Phil Schiller at a presentati­on in Cupertino, Calif., this month.

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