San Diego based technology firm Qualcomm has filed a complaint in an United States District Court against four manufacturers of Apple iPhone and iPads for breaching license agreements. These four manufactures include Foxconn Technologies, Pegatron Corporation, Wistron Corporation and Compal Technologies.
The case was filed in the United States District Court for the Southern District of California against these four manufacturers for refusing to pay for use of Qualcomm’s licensed technologies.
In this matter the US based chip maker seeks an order that would require the defendants to comply with their long-standing contractual obligations to Qualcomm, as well as declaratory relief and damages.
The chip maker said despite a long history of consistently paying royalties under their license agreements with Qualcomm, the manufacturers now are refusing to pay royalties on the Apple products they produce.
“It is unfortunate that we must take this action against these long-time licensees to enforce our agreements, but we cannot allow these manufacturers and Apple to use our valuable intellectual property without paying the fair and reasonable royalties to which they have agreed,” said Don Rosenberg, executive vice president and general counsel of Qualcomm.
Qualcomm said that though the manufacturers are not disputing their contractual obligations to pay for the use of its technologies,but they are following Apple’s instructions not to pay.
The license agreements with the manufacturers in many cases were entered into before Apple sold its first iPhone and Apple is not a party to the agreements. Further, the defendants are continuing to pay Qualcomm royalties for using its technology in non-Apple products, under the very same agreements that apply to the Apple products. Qualcomm has already filed a separate claim against Apple for its unlawful interference with the license agreements between the chipmaker and these manufacturers.
“As Apple continues to collect billions of dollars from consumer sales of its Qualcomm-enabled products, it is using its market power as the wealthiest company in the world to try to coerce unfair and unreasonable license terms from Qualcomm in its global attack on the company. Our license agreements with Apple’s manufacturers remain valid and enforceable. The manufacturers must continue to live up to their obligations under these agreements and Apple should immediately cease its tortious interference,” added Rosenberg.