QualcommQualcomm Inc that Apple Inc is $7 billion behind in patent royalty payments to the mobile chip firm. The statement was made in a court hearing on Friday.
Apple and Qualcomm are involved in a series of legal actions against each other. Both the companies are accusing each other with Apple accusing Qualcomm of unfair patent licensing practices and Qualcomm replying with a patent infringement accuse.
In the federal court of San Diego, Qualcomm made its comments about the size of Apple’s unpaid royalties. Apple, however, disputed the number of royalties that it owes to Qualcomm saying that the chip manufacturer is forcing them to pay for the same patent twice. Once with the chip inside iPhones and then again through royalties. Apple argued that if a patented technology is already embedded in the chips, the patent is “exhausted” by the sale of the chip. Meaning that Qualcomm cannot demand an additional license to use the technology.
Apple alleged that Qualcomm uses its huge patent portfolio in order to extort excessive royalties for basic technologies needed to communicate over cellular networks. Qualcomm replied to this by countersuing Apple, saying that among other things Apple has illegally interfered with its contractors’ obligations to pay royalties. In addition, Qualcomm has also sued Apple for infringing patents that pertain to technology related to power management which isn’t essential to standard communications.
Qualcomm argues that its practices are legal and accused Apple of trying to destroy Qualcomm’s business model after having agreed to it for years.