26 January 2017
Beijing
Reporter: Barney Dixon

Apple hits Qualcomm in China


Smartphone maker Apple has taken Qualcomm to court in China following the filing of its near $1 billion lawsuit in the US.

According to Qualcomm, one of Apple’s complaints alleges a violation of China’s anti-monopoly law.

The second asks for a determination of the terms of a patent licence between Qualcomm and Apple for Qualcomm’s standard-essential patents.

In 2015, Qualcomm was hit with a $975 million anti-trust fine in China for charging excessive royalties on standard-essential patents.

Earlier this month, Apple sued Qualcomm in the US, claiming it withheld nearly $1 billion in payments from Apple as retaliation for “responding truthfully to law enforcement agencies investigating them”. These include the US and South Korean competition regulators.

Don Rosenberg, executive vice president and general counsel of Qualcomm, said: "These filings by Apple’s Chinese subsidiary are just part of Apple’s efforts to find ways to pay less for Qualcomm's technology.”

“Apple was offered terms consistent with terms accepted by more than one hundred other Chinese companies and refused to even consider them. These terms were consistent with our National Development and Reform Commission rectification plan.”

“Qualcomm is prepared to defend its business model anywhere in the world. We are proud of our history of contributing our inventions to the development and success of the mobile communications ecosystem."

Qualcomm published its Q1 2017 results on 25 January, revealing licensing revenue of $1.86 billion.

Steve Mollenkopf, CEO of Qualcomm, said in a statement accompanying the results: “The recent legal and governmental actions against Qualcomm are at their core driven by commercial disputes.”

“As we have done in the past, we will vigorously defend our business model and the value of a portfolio of technologies that has been so instrumental to the success of the mobile communications industry.”

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