Apple gains reinforcement from iPhone manufacturers in Qualcomm fight
- Thursday, July 20th, 2017
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iPhone chip supplier Qualcomm has been hit with a counterclaim surrounding the legal battle it is currently embroiled in with Apple. The latest legal issue comes from a group of four Taiwanese companies that assemble the iPhone and other Apple products.
Foxconn’s parent company Hon Hai Precision Industry Co, Wistron Corp, Compal Electronics and Pegatron Corp have all alleged that Qualcomm violated two sections of the Sherman Act, a US antitrust law. The counterclaim, filed in the US District Court for the Southern District of California, is in relation to Qualcomm suing the Apple product manufacturers in May for an alleged breach of their license agreements by refusing to pay Qualcomm for the use of its tech.
“Qualcomm has confirmed publicly that this lawsuit against our clients is intended to make a point about Apple and punish our clients for working with Apple,” Theodore J. Boutrous, a lawyer for the four companies, told Reuters. “The companies are bringing their own claims and defences against Qualcomm.”
The allegations fired at Qualcomm from the four companies are part of a wider dispute between Apple and Qualcomm. The dispute begun in January when Apple sued Qualcomm for around $1bn – accusing the chip-maker of charging them royalties for technologies they have nothing to do with and withholding payments of almost $1bn. This led to Apple deciding, in April, that it would withhold payments for royalties owed to Qualcomm until the legal dispute was resolved.