14 DAY TRIAL // Four of Apple’s contract manufacturers based in Asia filed antitrust complaints against Qualcomm, explaining that the chip manufacturer violates two sections of the US antitrust law called Sherman Act.
Hon Hai Precision Industry (parent company of Foxconn), Wistron, Compal Electronics, and Pegatron claim in a filing in the US District Court for the Southern District of California that Qualcomm seeks payments in excess of the agreed licensing fees.
“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. The companies are bringing their own claims and defenses against Qualcomm,” Theodore J. Boutrous, one of the lawyers representing the Apple contractors that sued Qualcomm, explained according to Reuters.
The new filing represents only the latest move in a several months-long dispute that started in January when Apple accused Qualcomm of charging royalties worth nearly $1 billion for what they described as “technologies they have nothing to do with.”
Qualcomm wanted to ban the iPhone in the US
While Qualcomm dismissed the claims, the company decided to sue back Apple in May, requiring its contractors to continue paying royalty fees despite the lawsuit against the Cupertino giant.
"Despite Apple's claims against Qualcomm, Apple suppliers remain contractually obligated to pay royalties to Qualcomm under their license agreements with us, including for sales of iPhones to Apple," Qualcomm President Derek Aberle said in April.
Despite rumors of a possible settlement making the rounds lately, Apple is now siding with its partners, who do not agree to pay the extra fees that Qualcomm is seeking. If the counter-claims are successful, the lawsuit might not end up well for Qualcomm, as the company could be forced to pay billions of dollars, not only in royalties they charged for, but also in damages.
Apple is reportedly funding the legal defense of its contractors in the dispute against Qualcomm, and the company has also joined the case as a defendant.