QUALCOMM, Inc. (NASDAQ:QCOM) reported that while they are still in the midst of assessing the allegations in detail, it is evident that Apple Inc. (NASDAQ:AAPL)‘s claims are baseless. The latter has intentionally mischaracterized their negotiations and agreements, as well as the value and enormity of the technology they have invented, shared and contributed with all mobile device manufacturers through their licensing plan.
Apple has been actively doing regulatory attacks on Qualcomm’s operations in numerous jurisdictions across the globe, as reflected in the latest KFTC decision and FTC complaint, by distorting facts and withholding data. They look forward to this instance to have these meritless allegations heard in court where they will be entitled to full unearthing of Apple’s practices and a vigorous examination of the merits.
The details
More recently, Qualcomm was sued by Apple on the matter of patent royalty tactics. For many years, the company has unfairly asserted on charging royalties for know-hows they have nothing to relate with. The more Apple advances unique features, the more money Qualcomm gets for no reason. It also makes more expensive for Apple to support these innovations.
Qualcomm established its operations on older, legacy, standards but underpins its dominance through excessive royalties and exclusionary tactics. Despite being merely one of more a dozen firms who contributed to initial cellular standards, Qualcomm asserts on charging tech giant Apple at least 5 times more in payments compared to all the other cellular patent licensors they have agreements with combined.
Apple further claims Qualcomm has withheld $1 billion in payments as retaliatory step for responding truthfully to law enforcement agency probe into the company. It should be noted that Qualcomm is one of those companies that is looking to gain from the automotive growth. The company’s automotive business is projected to add $5.5 billion to its total revenue by 2019.
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