Apple Tells OEMs to Stop Paying Qualcomm

By Bob Raikes
Qualcomm
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Qualcomm has issued a complaint against Foxconn as well as Pegatron, Wistron and Compal. The companies had deals with Qualcomm before they started supplying Apple, but they say that as Apple believes it should not pay Qualcomm, they have been told to stop paying Qualcomm. The companies are paying royalties on products for companies other than Apple.

“It is unfortunate that we must take this action against these long-time licensees to enforce our agreements, but we cannot allow these manufacturers and Apple to use our valuable intellectual property without paying the fair and reasonable royalties to which they have agreed,” said Don Rosenberg, executive vice president and general counsel of Qualcomm. “As Apple continues to collect billions of dollars from consumer sales of its Qualcomm-enabled products, it is using its market power as the wealthiest company in the world to try to coerce unfair and unreasonable license terms from Qualcomm in its global attack on the company. Our license agreements with Apple’s manufacturers remain valid and enforceable. The manufacturers must continue to live up to their obligations under these agreements and Apple should immediately cease its tortious interference.”

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