Apple is suing mobile chip maker Qualcomm for $1 billion in a patent fight pitting the iPhone maker against one of its major suppliers.
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The 100-page complaint filed Friday in a San Diego federal court depicts Qualcomm as a greedy monopolist abusing its power in a key segment of the mobile chip market to extort royalties for iPhone innovations that have nothing to do with Qualcomm’s technology.
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For instance, Qualcomm demanded royalties on Apple’s fingerprint identification system built into recent models of the iPhone and also for larger storage capacities on the devices, according to the lawsuit.
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Qualcomm denied the allegations.
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We welcome the opportunity to have these meritless claims heard in court where we will be entitled to full discovery of Apple’s practices and a robust examination of the merits, said Don Rosenberg, Qualcomm’s general counsel.
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Apple says it has been cooperating with government regulators who have been investigating Qualcomm’s business practices, prompting Qualcomm to retaliate by withholding about $1 billion in scheduled payments.
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Qualcomm’s recent effort to cover its tracks — by punishing Apple for providing truthful testimony at the request of government regulators — underscores the lengths to which Qualcomm will go to protect its extortion scheme, the lawsuit alleges.
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Apple launched its legal attack three days after the Federal Trade Commission filed a lawsuit alleging Qualcomm has been imposing unfair licensing terms on manufacturers.
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Besides cooperating with the FTC’s investigation, Apple says it has been providing information about its dealings with Qualcomm to regulators in Europe, South Korea and Taiwan.
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South Korea regulators last month imposed an $853 million fine on Qualcomm for violating its antitrust laws, a decision that Qualcomm is fighting.
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Shares in San Diego-based Qualcomm Inc. fell $1.56, or 2.4 percent, to close Friday at $62.88. Those of Apple Inc., which is based in Cupertino, California, ended up 22 cents at $120.