Qualcomm suit targets Apple's entire iPhone business model

Qualcomm suit targets Apple's entire iPhone business model

While the company is attempting to fight off accusations of anti-competitive business practices, it's also taking on Apple in the courts.

Qualcomm has filed a lawsuit seeking to ban iPhone sales and manufacturing in China, reports Bloomberg.

In its lawsuit, Qualcomm reportedly claims that Apple is in violation of three patents, none of which are essential to any industry standards - meaning Qualcomm isn't obligated to license them. Apple has accused Qualcomm of failing to pay it $1 billion in rebates that it says it is owed.

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The parents relate to the Force Touch touchscreentech used in iPhones as well as the way Apple's handsets manage power.

Apple's shares were up marginally, while Qualcomm shares were little changed in afternoon trading.

Although Apple doesn't use Snapdragon processors in its iPhones, it's still on the hook for numerous patents Qualcomm owns. Rosenstock believes that "like [Qualcomm's] other courtroom maneuvers. this latest legal effort will fail". The San Diego-based company aims to inflict pain on Apple in the world's largest market for smartphones and cut off production in a country where most iPhones are made. Qualcomm previously requested an iPhone ban in the United States. While Qualcomm gets the majority of its sales from making phone chips, it pulls in most of its profit from charging fees for patents that cover the fundamentals of all modern phone systems. It's been repeatedly fined for similar behaviors, with the latest ruling coming down yesterday, when it was fined $774 million by Taiwan's Fair Trade Commission.

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