Apple is withholding payments to iPhone manufacturers for any royalties it owes to chip-maker Qualcomm, and has indicated that it will continue to not make any payments until its legal dispute with Qualcomm is resolved.
The legal dispute between the pair surrounds Apple accusing Qualcomm of charging royalties for technologies they have nothing to do with. As a result of these claims, Apple are suing Qualcomm for around $1bn.
“Apple is improperly interfering with Qualcomm's long-standing agreements with Qualcomm's licensees,” said Don Rosenberg, executive vice president and general counsel of Qualcomm. “These license agreements remain valid and enforceable. While Apple has acknowledged that payment is owed for the use of Qualcomm's valuable intellectual property, it nevertheless continues to interfere with our contracts.
“Apple has now unilaterally declared the contract terms unacceptable; the same terms that have applied to iPhones and cellular-enabled iPads for a decade. Apple's continued interference with Qualcomm's agreements to which Apple is not a party is wrongful and the latest step in Apple's global attack on Qualcomm. We will continue vigorously to defend our business model, and pursue our right to protect and receive fair value for our technological contributions to the industry.”