Published in PC Hardware

Apple rallies its dependant minions to take on Qualcomm

by on19 July 2017


Imagine what it would be like if you don’t do what you are told


One of the big advantages of having your partners dependant on you means that your enemies are their enemies.

The Tame Apple Press is reporting that there have been four new complaints about Qualcomm’s antitrust activities and citing this as proof that Apple is right and Qualcomm is evil. The only difficulty about it is that all four are so deeply dependant on Apple you have to question how they can’t be linked.

The first to complain is Hon Hai Precision Industry which assembles iPhones, next is Wistron which makes iPhone in India, Compal Electronics which makes the Apple Watch and Pegatron which makes iPhones in China.

All of them have rushed to court to complain that Qualcomm violated two sections of the Sherman Act, a U.S. antitrust law. The accusations, made in a filing late Tuesday in US District Court for the Southern District of California, are counterclaims to a Qualcomm lawsuit filed in May seeking to force the contractors to pay Qualcomm licence fees that Apple directed them to stop paying.

Theodore J. Boutrous, a lawyer for the four companies said that Qualcomm has confirmed publicly that "this lawsuit against our clients is intended to make a point about Apple and punish our clients for working with Apple. The companies are bringing their own claims and defenses against Qualcomm".

Apple sued Qualcomm alleging that the company had withheld nearly $1 billion of patent licence rebates it owed Apple in retaliation for Apple's cooperation with South Korean regulators. Apple told its contract manufacturers to withhold licence payments from Qualcomm while the dispute played out, which prompted Qualcomm to sue them in May.

Qualcomm President Derek Aberle said that despite Apple's claims against Qualcomm, Apple suppliers remain contractually obligated to pay royalties to Qualcomm under their licence agreements with it, including for sales of iPhones to Apple.

Even Apple cheerleader Reuters has noticed how much of the language in the contractors' allegations mirror Apple's objections to Qualcomm's business model.

A senior Apple official admitted that Jobs’ Mob is helping to fund the contractors' legal defence as part of an indemnification agreement among the firms. Apple has also formally joined the contractor case as a defendant. The question remains then would these four be complaining if Apple had not shown up with huge wodges of cash, or would they be happy enough with the Qualcomm deals not to object.

Last modified on 19 July 2017
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