Apple Stopped Paying Its Suppliers. Now They’re Getting Sued.

By NTK Staff | 05.25.2017 @2:03pm
Apple Stopped Paying Its Suppliers. Now They’re Getting Sued.

Tech giant Apple stopped paying its chip manufacturers last month, which prompted this week’s injunction…

The ongoing legal battle between tech giant Apple and chip manufacturer Qualcomm is complicated at best, but CNET does a good job of summarizing the current situation. Qualcomm is seeking an injunction to force Apple to resume paying Qualcomm royalties:

Qualcomm’s intellectual properties are essential for connecting phones to wireless networks. To use these IPs, Apple pays its manufacturers, who then pay Qualcomm. However, Apple last month said it would stop paying these fees, due to an ongoing lawsuit between the two companies, which led to iPhone and iPad manufacturers not paying Qualcomm. The chipmaker last week sued four of Apple’s manufacturers.

In the meantime, however, Qualcomm is seeking an injunction that would force Apple’s suppliers to resume paying the fees Qualcomm is owed.

Qualcomm argues that it is unfair that it isn’t getting paid for use of its patents during the dispute, while iPhones and iPads continue to incorporate its cellular intellectual property at no charge.

“We are asking the court to even the playing field,” said Donald Rosenberg, Qualcomm’s general counsel. “Let’s all act on the status quo while the case is being litigated.”

A hearing is scheduled for June 26 to address Qualcomm’s preliminary injunction.

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