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Apple Contractors Gang Up On Qualcomm, File Antitrust Complaint

Apple Contractors Gang Up On Qualcomm, File Antitrust Complaint

Apple Inc. (NASDAQ: AAPL) now has some back up in its legal fight.

Four iPhone and iPad manufacturers thrust their weight behind the tech giant in its legal battle with QUALCOMM, Inc. (NASDAQ: QCOM).

Compal Electronics Inc, Pegatron Corp, Wistron Corp, and Foxconn parent Hon Hai Precision Industry Co filed antitrust claims in a U.S. District Court accusing the chip supplier of violating the Sherman Act and charging excessive licensing fees.

The suit counters Qualcomm’s May filing demanding royalties the contractors had withheld on behalf of Apple.

A History Of Conflict

The conflict extends an ongoing dispute between Apple and Qualcomm that began in January when Apple sued for failed payments of patent license rebates worth about $1 billion. Qualcomm countersued Apple in May for its retaliatory withholding of license payments.

"Qualcomm has confirmed publicly that this [latest] lawsuit against our clients is intended to make a point about Apple and punish our clients for working with Apple," Theodore Boutrous, a lawyer for the four contractors, said in a statement. "The companies are bringing their own claims and defenses against Qualcomm."

Apple is helping finance the plaintiffs’ legal defense and has joined the new case as a defendant, according to Reuters. The New York Times reported that the firm also filed to consolidate the contractors’ suit against Qualcomm with its own.

Qualcomm will release its quarterly earnings tonight, which is expected to reveal financial strain from its various clashes.

Related Links:

Qualcomm’s Future With Apple Remains Unclear

Bitter Bite: Qualcomm Updates Q3 Guidance On Apple Interference

Image credit: Kārlis Dambrāns, Flickr

Posted-In: foxconnNews Legal Tech Best of Benzinga


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