According to reports, giant Chip-maker QUALCOMM, Inc.(NASDAQ:QCOM) have hit back at Apple Inc. (AAPL, saying the iPhone-maker’s January lawsuit should be rejected.
The Chipmaker also made its own claims in quest of damages, accusing Apple Inc. (AAPL) of harming its trade and infringing deals between the two firms.
Apple’s lawsuit indicted QUALCOMM, Inc.(NASDAQ:QCOM), one of the most important developers of cellular communications technologies, of abusing its leading position by forcing phone makers to pay too much royalties, even when they used modem chips from Qualcomm competitors.
Meanwhile Qualcomm said in response that its royalties were in line with laws around the globe and had been accepted by companies for so many years. It denied blocking Apple’s capability to use rivals products, and said Apple had interfered with its business relationships with companies that manufacture the iPhone and other Smartphone’s.
“We have negotiated hundreds of bilateral license agreements over the last two plus decades,” Qualcomm general counsel Don Rosenberg tells Fortune in an interview. “And those have clearly established a clear market value for the tens of thousands, now of patents that we hold in the whole area of cell technology.”
The lawsuit from iPhone-maker, and other antitrust legal challenges against Qualcomm filed around the globe, threaten the most money-making part of the company’s business. Not just Apple regulators in South Korea, where Samsung Electronics is based, have stamped an almost $1 billion fine against Qualcomm in a similar case. The large Smartphone makers appear to have seen a chance to hit the Qualcomm model after China cracked down on the chipmaker’s purportedly monopolistic practices two years ago, imposing a $975 million fine and forcing new negotiations with device makers.
In year 2016, QUALCOMM, Inc.(NASDAQ:QCOM) royalty licensing division revealed a $6.5 billion of pretax profit on $7.6 billion of revenue. Meanwhile, the firm’s own chip business itself just made $1.8 billion in pretax profit on $15.4 billion of sales.