Fri, Jan 27, 2017 - Page 10 News List

Apple sues Qualcomm in China over licensing fees


Qualcomm Inc executive chairman Paul Jacobs speaks at a panel session of the World Economic Forum in Davos, Switzerland, on Friday last week.

Photo: Keystone via AP

Apple Inc has filed suit in China challenging Qualcomm Inc’s fees for technology used in smartphones two years after Chinese regulators fined the chipmaker for its licensing practices.

Two lawsuits filed by the iPhone maker accuse Qualcomm of abusing its control over essential technology to charge excessive licensing fees, a Beijing court said on its microblog.

It said Apple reports suffering 1 billion yuan (US$145.4 million) in “economic losses” and asks for 2.5 million yuan.

Most of Apple’s iPhones and other products are assembled in China by contractors.

Apple filed a similar complaint in US federal court in San Diego, California, on Saturday last week, accusing Qualcomm of demanding royalties for innovations on iPhones that have nothing to do with Qualcomm’s technology.

The US lawsuit seeks US$1 billion in damages.

The US Federal Trade Commission also has filed a lawsuit accusing Qualcomm of imposing unfair licensing terms on manufacturers.

San Diego-headquartered Qualcomm said in a statement that it had not seen Apple’s complaint to the Chinese court, but defended its fees.

The company said Apple rejected terms consistent with those accepted by more than 100 Chinese manufacturers, adding that its fees were consistent with changes worked out with Chinese regulators.

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

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