Less than 3 months after being sued by Apple for $1 billion in a dispute over licensing fees for mobile technology.
Qualcomm the worlds 2nd largest chip maker has hit back with a counter sue on Apple heating up the legal battle.
In the original suit, Apple claimed that Qualcomm was unfairly charging royalties for technologies “it has nothing to do with.”
Qualcomm’s business model involves making money from licensing its patents to technology makers.
Apple also accused the chip maker of inflating its prices through this model.
The suit has already caused much financial damage to Qualcomm. On Monday the company’s stock had plummeted by 12%. Their stock saw a similar fall, going from $80 to $65.
Qualcomm is already under a lot of scrutiny. Just last month, South Korea fined the company $890 million for their monopolistic practices.
Other governments are investigating the company as well, so the suit by Apple is the last thing they need.
What is Qualcomm Doing?
In the counter sue, the company’s General Counsel plans to challenge Apple’s claims in court:
“Apple has intentionally mischaracterized our agreements and negotiations, as well as the enormity and value of the technology we have invented, contributed and shared with all mobile device makers through our licensing program,”
Apple said that it had an exclusivity agreement from 2011 to 2016. However last year the mobile phone giant also starting using Intel modem chips for some versions of the iPhone 7.
Apple has also previously suggested that the Intel-powered devices were superior to Qualcomm’s.
They have has not taken this lying down. They claim that Apple has chosen not to the utilize the full performance of its chips. This, they feel, is causing a misleading disparity between it and Intel.
Apple is also suing the company in China, the UK and Japan. At the same time also fighting against allegations of anti-competitive behaviour by the US Federal Trade Commission.
“We are extremely disappointed in the way Qualcomm is conducting its business with us and we have no choice left but to turn to the courts,” said Apple in January