Over the past few months, Apple and Qualcomm have been fighting over royalties. Recently, Apple refused to pay the company the licensing fees. This situation could lead to decreased revenues for Qualcomm due to this unexpected move. The Cupertino-company will continue paying the license only when the court comes out with a decision. Of course, Apple is looking to pay much less than before.
Representatives of Qualcomm reveal that Apple is improperly interfering with their agreements. For those who don’t know, Qualcomm is a chipset supplier for many of the phone manufacturers in the world. Moreover, the company is a holder of a variety of patents on wireless technologies. This means that each and every smartphone maker in the world including Apple and Samsung must pay royalty fees to the company.
However, most companies are turning their back against Qualcomm as they are filling too many patents, forcing manufacturers to pay huge fees. That’s why South Korea’s antitrust regular fined the company with around $850 million for its activities in the country. Not only that but manufacturers must pay their royalty fees in advance if they wish to use their chipsets.
Not long ago, Apple decided to fight back by filing a suit against the company in January. They are suing the chipset manufacturer for forcing the smartphone maker to pay more royalties due to the fact that it’s using chipsets made from competitors. Thus, the creators of one of the most popular phones in the world are asking for a billion dollars. Now, the two companies have started a legal war that might be quite ugly.
The aggressive move by Apple to stop paying the fees means that they are quite confident that they will win those cases. One thing is sure, Qualcomm is going to experience massive financial losses without Apple’s payments.