Published in Processors

Qualcomm faces shareholder lawsuit

by on26 May 2017


Legal department is a bit too busy

Qualcomm's own shareholders have sued the chipmaker for creating too many lawsuits.

The chipmaker now faces several lawsuits at the moment. One from the FTC alleging that Qualcomm had abused its dominance of the baseband processor market. A dubious one from Apple which Qualcomm is countersuing by taking on Jobs’ Mob’s supply chain including Foxconn, Compal, and Wistron. Between them they make most of the world's smartphones.

The shareholder suit not only targets company strategy and execution from 2013 to the present day under the Securities Exchange Act.

The case also vents a bit about the Snapdragon 810, designed as the 2015 flagship. The shareholders claim that Qualcomm cut corners and claimed it added 64bit mode in a hurry, which caused the chip to get a little warm.

Qualcomm is finding that its court case against Apple is costing it rather a lot of money. This is mostly because Apple is playing hardball and sitting on the money it knows it owes until Qualcomm does what it is told.

Don Rosenberg, executive vice president and general counsel of Qualcomm said that while Apple has acknowledged that payment is owed for the use of Qualcomm's valuable intellectual property, it nevertheless continues to interfere with its contracts.

"Apple has now unilaterally declared the contract terms unacceptable; the same terms that have applied to iPhones and cellular-enabled iPads for a decade. Apple's continued interference with Qualcomm's agreements to which Apple is not a party is wrongful and the latest step in Apple's global attack on Qualcomm."

Last modified on 26 May 2017
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