Qualcomm sues Apple for breach of software license contract

Qualcomm sues Apple for breach of software license contract

Qualcomm sues Apple for breach of software license contract

The contract Apple allegedly broke surrounds software created to make Qualcomm chips work with other iPhone components, Bloomberg first reported.

In January, Apple sued Qualcomm for almost $1 billion for charging a hefty price for royalties on technologies that Apple said the chipmaker should not be associated with.

In a Wednesday lawsuit, Qualcomm says a software license agreement the two companies signed in 2010 gave Apple access to Qualcomm's software source code. Apple's move comes amid a dispute over the iPhone maker's access to the San Diego-based company's proprietary technology, according to people familiar with the matter.

Reuters reported earlier this week that Apple would drop Qualcomm's chips altogether from its iPhones and iPads beginning next year.

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"The Qualcomm modem that could be used in the next generation iPhone has already been fully tested and released to Apple", Qualcomm said in a statement to Bloomberg News. Back in January, Apple sued Qualcomm for allegedly withholding $1 billion in rebates because it complied with Korean regulators investigating Qualcomm. Apple is being sued for breach of a contract that governs the use of software needed to make chips work with other parts of mobile phones and communicate with networks.

Apple has relied on Qualcomm chips all along until iPhone 6 and iPhone 6 Plus, but with the iPhone 7 and iPhone 8 series, and the iPhone X, Apple started using a mix of Qualcomm and Intel chips. It widened its suppliers to include Intel for some versions of the iPhone beginning with the 7 model.

The US chipmaker Qualcomm's legal battle with Apple did not dampen its growth as the company beat estimates with $5.96 billion in sales in the fourth quarter of its fiscal year that ended September 30.

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