Apple is now participating in legal proxy battles that include suits, countersuits and billions of dollars. The Cupertino-based tech giant is financially backing four iPhone manufacturers against their legal battle with Qualcomm – the company that creates the chip technology that allows iPhone to connect with cell data networks.
So, here’s what we know so far. On July 18 – Pegatron Corp, Winston Corp, Compal Electronics Inc & Hon Hai Precision Industry Co all claimed antitrust violations by Qualcomm. The companies believe that Qualcomm has violated the 1890 U.S federal law – the Sherman Act.
The legal dispute between Apple and Qualcomm has a long history. In January, the smartphone manufacturer sued Qualcomm for unpaid patent license rebates, wanting over a $1 billion for the purpose. Then, they told the iPhone manufacturers to cease payments to the sued company until everything is legally sorted out.
This led to Qualcomm’s decision to sue them all, which won’t be much of a problem when Apple is funding the legal war. According to the lawyer of those companies, the chip manufacturer is trying to punish the phone manufacturers for working with Apple.
Recently, a company’s representative revealed that Apple wouldn’t be leaving their associates to fight this battle alone and with around $250 billion in cash reserves, Apple can afford to have a legal war if they want to.