Apple is at the top of the food chain, and their incredible profit lines provide an initiative for companies to initiate lawsuits if they fall victim to copyright. Additionally, Apple’s domineering influence encourages attempts to legally destroy anyone who infringes on their copyright, or who breach contractual agreements. One of the most recent legal developments is between Qualcomm and Apple, where another lawsuit has surfaced as part of an ongoing fight between the two.
Qualcomm sues Apple is a headline which isn’t surprising for those who are familiar with a recent string of lawsuits between the two, which have collectively created considerable tension in and out of court. Qualcomm are claiming Apple breached their contracted agreement, which was arranged regarding the software necessary for mobile chips to interact with the rest of an Apple handset. The legal proceedings between the two companies started in January, when Apple sued Qualcomm, accusing them of overcharging for use of their patented chips.
Next Qualcomm sues Apple, accusing them of failing to abide by their software license, and additionally of using their unprecedented access to Qualcomm to benefit rival Intel. The escalating dispute over technology licensing fees stems from Apple’s initial accusation that Qualcomm charges too much, and unfairly leverages its strong market position. Apple can equally be accused of this behavior, where all dominant companies with a firm influence tend to abuse their power.
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Qualcomm claim that Apple hasn’t protected their software sufficiently, which they legally agreed to, and say Apple aren’t allowing for a proper audit to review how the iPhone handles their software.
As things currently stand, Apple utilizes chips from Qualcomm and Intel, so suitable terms must be agreed before they can continue with their mutually beneficial collaboration. But, recent news reports from The Wall Street Journal suggest Apple are designing products which don’t require Qualcomm components, which would free Apple from Qualcomm’s influence. If this is a result of the ongoing squabbles, Qualcomm would be wise to meet Apple on good terms, since they might otherwise lose an undoubtedly lucrative customer.
If Qualcomm did receive news that Apple were planning on manufacturing products without their chips, it makes sense Qualcomm sues Apple. They would suffer a revenue loss of 7.5 percent if they lost Apple as a customer, and since Qualcomm’s shares recently rose 3.8 percent, now would be a bad time for them to either lose Apple’s custom, or to continue with messy court proceedings.
I hope you have found this article informative, and can put a perspective to the ‘Qualcomm sues Apple’ headline. If you would like to add anything to the conversation, please comment below to kick-start the discussion.