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Apple seeks to void patent claims, fees in Qualcomm dispute

20 June 2017

This precedent, Apple says, strengthens its argument that Qualcomm can not continue to demand royalties for the patents after selling its chips. The iPhone maker claims that some of Qualcomm's patents are invalid and the company is not charging fair and reasonable rates on patents related to industry standards. It all started in January, when the iPhone manufacturer sued Qualcomm for allegedly withholding $1 billion in royalties that were owed to the Cupertino company.

As noted by our Apple-Qualcomm battle history outlined below you can see that this legal battle is going to be tough and nasty and by the looks of it today, Apple is digging in their heels to end Qualcomm's "No License, No Chips" market tactic that affects not only Apple, but Samsung and others as well.

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Citing the Lexmark decision, Apple argues that once a customer buys a phone with Qualcomm technology the chip maker is already paid, and any additional royalties charged is a double-dip and a violation of US patent law.

Apple (NASDAQ:AAPL) wants a court to rule Qualcomm's (NASDAQ:QCOM) royalty license agreements invalid, according to Reuters. The San Diego company didn't immediately return a message seeking comment, made before regular business hours.

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The license allowed Qualcomm to take a percentage of the overall selling price for the iPhone, in exchange for supplying the microchips that allow the phones to connect to cellular data networks.

One argument working in Qualcomm's favor, however: Apple and its contractors signed agreements to pay licensing fees this way.

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Bloomberg reported this morning that Apple returned fire, saying in a legal filing that evidence increasingly indicated Qualcomm's business model is "illegal". Qualcomm says that Apple breached its contract by doing so, Apple disagrees.

Apple seeks to void patent claims, fees in Qualcomm dispute