- Jul 30, 2021
Apple and Qualcomm have engaged in what appears to be a long drawn brawl. Apple Inc. asked Qualcomm $1 billion as an “incentive payment” in order for Qualcomm to become the supplier of modem chips for Apple’s iPhone. This tug-and-war game has been going on for quite some time between Apple and Qualcomm.
Previously Qualcomm filed a report against Apple asking the Chinese government to ban Apple from selling its product in China. Qualcomm’s claim had nothing to do with the Chinese government but they based their case on the basis that Apple apparently stole and was using Qualcomm’s patents. Qualcomm is further looking to ban Apple products from being imported to the U.S and as such back in 2017, Qualcomm asked the U.S trade regulator for a cease and desist order for the Apple products.
Apple, in turn, countersued Qualcomm a number of times as an attempt to counter-attack and to nullify their claim. As of the latest development in their brawl, Apple has filed a lawsuit against Qualcomm in the U.S for $1 billion. That, however, is not the end of Apple’s lawsuit. Apple has also filed a patent lawsuit against Qualcomm in China, this time for “only” $145 million. The motive behind their China lawsuit is the same as the U.S lawsuit. Apple claims that Qualcomm is unable to deliver on patent-related promises.
Qualcomm’s chief executive was testified at a trial with U.S antitrust regulators on Friday. The $1 billion payment was meant to be a part of a 2011 deal between these two companies to ease off some of the technical costs of swapping out the iPhone’s then current chip with Qualcomm’s. However, Qualcomm’s CEO Steve Mollenkopf asserted at a trial with the U.S Federal Trade Commission that the payment was done in order for Qualcomm to become the sole supplier of Apple’s modem-chips.