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Qualcomm Calls Apple's Claims 'Baseless' in Response to $1 Billion Lawsuit

Following news yesterday that Apple has filed suit against LTE modem supplier Qualcomm for engaging in anticompetitive licensing practices, the chipmaker hit back on Sunday by calling Apple’s claims “baseless” and accusing it of “encouraging regulatory attacks”.

Apple shared a statement with several news sites on Friday announcing the lawsuit, which argued that Qualcomm used its position as the sole supplier of a key iPhone component to drive up patent licensing fees. This morning Qualcomm responded in a statement on its website in which it claimed that Apple “intentionally mischaracterized our agreements and negotiations”.

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“While we are still in the process of reviewing the complaint in detail, it is quite clear that Apple’s claims are baseless. Apple has intentionally mischaracterized our agreements and negotiations, as well as the enormity and value of the technology we have invented, contributed and shared with all mobile device makers through our licensing program. Apple has been actively encouraging regulatory attacks on Qualcomm’s business in various jurisdictions around the world, as reflected in the recent KFTC decision and FTC complaint, by misrepresenting facts and withholding information. We welcome the opportunity to have these meritless claims heard in court where we will be entitled to full discovery of Apple’s practices and a robust examination of the merits,” said Don Rosenberg, executive vice president and general counsel, Qualcomm Incorporated.

Qualcomm was the sole supplier of LTE modems used in iPhones up until 2016, when Intel also began providing the component with the launch of the iPhone 7 and iPhone 7 Plus. Apple claims Qualcomm forced it to use the LTE chips and pay back a percentage of the selling price of the phone in return for access to its patents.

Apple wants $1 billion in rebate payments, which were withheld by Qualcomm after Apple became involved in an antitrust investigation against the company in South Korea.

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CBS and Paramount settle lawsuit with 'Star Trek' fan film

It’s been a wild ride for the folks behind the Axanar Star Trek fan film, but it’s finally over — the fan production group has settled its lawsuit with CBS and Paramount. The terms of the agreement aren’t completely clear, but both parties have anno…

Samsung can't use in-box warranty to kill Galaxy S4 lawsuit

Oh Samsung. When the company isn’t busy recalling cellphones and washing machines for being safety hazards, it’s busy fighting its customers in court. In 2015, Daniel Norcia contended that he was misled by Samsung about the capabilities of his Galaxy…

Apple sues Qualcomm for $1 billion in royalty dispute

Apple has filed a $1 billion lawsuit against Qualcomm, claiming that for many years, the chip manufacturer has “unfairly insisted on charging royalties for technologies they have nothing to do with,” CNBC reports.

This marks the end of a rough week…

Apple Sues Qualcomm for $1 Billion in Unpaid Royalty Rebates

Following an FTC complaint alleging Qualcomm engaged in anticompetitive patent licensing practices, Apple has filed a lawsuit against Qualcomm claiming the company has charged unfair royalties for “technologies they have nothing to do with.”

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According to a statement Apple shared with several news sites, Qualcomm “reinforces its dominance” through exclusionary tactics and high patent licensing fees. Apple’s full statement is below:

“For many years Qualcomm has unfairly insisted on charging royalties for technologies they have nothing to do with. The more Apple innovates with unique features such as TouchID, advanced displays, and cameras, to name just a few, the more money Qualcomm collects for no reason and the more expensive it becomes for Apple to fund these innovations. Qualcomm built its business on older, legacy, standards but reinforces its dominance through exclusionary tactics and excessive royalties. Despite being just one of over a dozen companies who contributed to basic cellular standards, Qualcomm insists on charging Apple at least five times more in payments than all the other cellular patent licensors we have agreements with combined.

To protect this business scheme Qualcomm has taken increasingly radical steps, most recently withholding nearly $1B in payments from Apple as retaliation for responding truthfully to law enforcement agencies investigating them.

Apple believes deeply in innovation and we have always been willing to pay fair and reasonable rates for patents we use. We are extremely disappointed in the way Qualcomm is conducting its business with us and unfortunately after years of disagreement over what constitutes a fair and reasonable royalty we have no choice left but to turn to the courts.”

In the lawsuit, filed in a federal district court in the Southern District of California, Apple accuses Qualcomm of using its position as the supplier of a key iPhone component to drive up patent licensing fees.

Qualcomm supplies the LTE modems used in Apple’s line of iPhones, and up until 2016, the company was Apple’s sole supplier. The iPhone 7 and the iPhone 7 Plus use modems from both Qualcomm and Intel.

Qualcomm reportedly forced Apple to use its LTE chips exclusively in iOS devices and pay a percentage of the total average selling price of an iPhone for access to Qualcomm patents.

Qualcomm is supposed to provide Apple with quarterly rebates, but has failed to do so for the past year because of Apple’s participation in an antitrust investigation against Qualcomm in South Korea. That investigation led to an $850+ million fine against Qualcomm for anticompetitive licensing practices.

Apple is seeking $1 billion in rebate payments that have been withheld.

Earlier this week, the United States Federal Trade Commission filed a lawsuit against Qualcomm that focused in part on Apple and Qualcomm’s licensing deals. According to the FTC, Qualcomm imposes “onerous and anticompetitive supply and licensing terms” on its smartphone partners by abusing its patent portfolio.

Qualcomm has said it has “grave concerns” about the lack of evidence supporting the FTC’s allegations and has promised to defend itself in federal court.

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Palmer Luckey insists he didn't steal VR code for Oculus

Yesterday, Facebook CEO Mark Zuckerberg took the stand to testify in a lawsuit against Oculus, and today it was Palmer Luckey’s turn. The founder of Oculus VR — who has remained out of sight since his role in funding political trolls came to light -…

Oracle faces Labor Department lawsuit over job discrimination

Google isn’t the only Silicon Valley staple facing a lawsuit over the fairness of its hiring practices. The US Department of Labor has sued Oracle for allegedly conducting discriminatory employment practices. The enterprise tech giant is accused of p…

Apple Sued for Choosing Not to 'Lock-Out' iPhones Behind the Wheel to Prevent Texting and Driving

California resident Julio Ceja is seeking a class action lawsuit against Apple, accusing the company of placing profit before consumer safety by choosing not to implement a lock-out mechanism that would disable an iPhone’s functionality when being used…

Mark Zuckerberg defends Oculus in court against VR rival

Facebook founder Mark Zuckerberg was grilled in court this morning over the creation of the Oculus Rift VR headset, as part of a $2 billion lawsuit brought by ZeniMax Media. ZeniMax — the owner of Bethesda Softworks, id Software and other vid…

Apple vs. Samsung Lawsuit Over iPhone Design Officially Reopened

The U.S. Court of Appeals for the Federal Circuit on Thursday reopened a longstanding patent lawsuit related to Samsung copying the design of the iPhone nearly six years ago, adhering to a recommendation from the U.S. Supreme Court, according to court documents filed electronically this week.

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The court will seek to determine the exact amount Samsung owes Apple for infringing upon the iPhone’s patented design, including its rectangular front face with rounded edges and grid of colorful icons on a black screen. The previous $399 million damages judgment was overturned by the Supreme Court last month.

Apple’s damages were calculated based on Samsung’s entire profit from the sale of its infringing Galaxy smartphones, but the Supreme Court ruled it did not have enough info to say whether the amount should be based on the total device, or rather individual components such as the front bezel or the screen.

It will now be up to the appeals court to decide. Apple last month said the lawsuit, ongoing since 2011, has always been about Samsung’s “blatant copying” of its ideas, adding that it remains optimistic that the U.S. Court of Appeals will “again send a powerful signal that stealing isn’t right.”

The question before the Supreme Court was how to calculate the amount Samsung should pay for their copying. Our case has always been about Samsung’s blatant copying of our ideas, and that was never in dispute. We will continue to protect the years of hard work that has made iPhone the world’s most innovative and beloved product. We remain optimistic that the lower courts will again send a powerful signal that stealing isn’t right.

Calvin Klein, Dieter Rams, Norman Foster, and over 100 other top designers filed an amicus brief in support of Apple, arguing the iPhone maker is entitled to all profits Samsung has earned from infringing designs. They cited a 1949 study showing more than 99% of Americans could identify a bottle of Coca-Cola by shape alone.

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Apple faces a price-fixing suit over App Store purchases

Apple is in court once again. This time, the company is part of an anti-trust lawsuit over the strict limitations over where users can buy iOS applications. Specifically, the requirement that all apps be purchased through the Cupertino company’s App…

FBI allegedly paid Geek Squad for evidence

Last May, the defense in a child pornography trial alleged that the FBI used a member of electronics retailer Best Buy’s tech support team, Geek Squad, to peer into the accused’s computer on the hunt for evidence of child pornography. Since then, the…

VW pleads guilty in US emissions scandal, will pay $4.3 billion

Volkswagen has agreed to pay $4.3 billion to settle criminal and civil charges brought by the United States Justice Department over the company’s use of emissions-cheating technology in millions of its diesel vehicles sold around the world, the AP re…

Uber and Honda face lawsuit after crash leaves rider paralyzed

Questions about Uber’s driver screening aren’t about to go away any time soon. A Dallas woman is suing Uber and Honda after her ridesharing driver ran a red light, leading to a crash that left her paralyzed from the chest down. The lawsuit alleges th…

Google sued by US government for not sharing employee salaries

The U.S Department of Labor is suing Google after the company declined to share employment data with the government. In its complaint, the department claims that Google refused to reveal employee salaries and benefits to the Office of Federal …

'Star Trek' fan film loses fair use case, moves to jury trial

It’s been a long journey for the makers Axanar, the crowdfunded Star Trek fan film that ran afoul of CBS and Paramont’s lawyers. After successfully raising over a million dollars to to create a professional-grade homage to the Star Trek brand, Axanar…

Run-DMC sues Amazon, Walmart over online counterfeits

It’s not just tech giants like Apple that are taking online stores to task for allowing counterfeit goods on their virtual shelves. Run-DMC is suing Amazon, Walmart (including Jet.com) and partners for selling bogus shirts, hats and other goods that…

Australia fines Valve $2.2 million over its Steam refund policy

Australia’s federal court has fined Valve AUD$3 million (USD$2.2 million) after ruling that the company breached consumer law when it didn’t offer refunds between 2011 and 2014. This is the maximum fine requested by Australia’s competition regulator…

Nokia Sues Apple for Patent Infringement in Germany and the U.S. Following Licensing Disagreement

Nokia today announced that it has filed several complaints against Apple in Germany and the United States, accusing the Cupertino company of infringing on Nokia patents.

Nokia’s lawsuit stems from a disagreement between Apple and Nokia over licensin…

Families of Pulse nightclub shooting sue Google, Facebook

Google, Facebook and Twitter are facing a lawsuit filed by the families of three victims killed by Pulse nightclub gunman Omar Mateen in Orlando. The plaintiffs are accusing the tech titans of providing “material support” to Mateen, who was known to…

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