Apple Allegedly Owes Qualcomm $7 Billion In Royalty Payments

By Nitish Singh / October 27, 2018

Apple and Qualcomm are in a tense relationship right now, and both companies have filed lawsuits against each other in an ongoing dispute. Qualcomm has sued Apple for $7 billion in royalties in court over unfair licensing practices during a high court hearing on Friday.

Apple started withholding payments for its manufacturers since last year after a lawsuit was filed against Qualcomm. Apple claimed that Qualcomm was charging unfair royalty charges for technologies that they had had no right to charge for. On the other hand, the chip maker states that their royalties are completely valid and the technology is used in every iPhone out there.

Qualcomm lawyer Evan Chesler stated in court on Friday "They're trying to destroy our business. They're now $7 billion dollars behind in royalties. The house is on fire, and there is $7 billion of property damage right now."

This is not the first time both companies have gone at each other with a number of lawsuits dating back to 2017. Apple was the first to accuse Qualcomm of unfair patent licensing practices which led to the chip maker accusing Apple in return for patent infringement. Both companies are likely to be stuck in a legal battle for years.

According to Apple, the chipmaker is simply trying to force payments for usage as well as patent royalties, in a bid to double dip on Apple’s profits. While the practice may be considered unethical, the chipmaker believes that they are doing nothing illegal and has agreed to the same business model for years. The chipmaker has also attempted to put a ban on the import and export of some iPhones in China and the US. The lawsuits are still pending, and there have been no verdicts yet so far.

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