After Apple’s partner companies and representatives of some of the technology giants enter the legal battle against Qualcomm, it is now Intel’s turn. Qualcomm’s rival has said that the chip maker is trying to kill the competition with its controversy with Apple.
Intel filed a public statement to the US International Trade Commission on the investigation into Qualcomm’s allegation that Apple’s iPhones violate six of its patents. Specifically, Intel said the case is about the extinction of competition that it itself – Intel – represents. The company has described itself as the “only remaining competitor of Qualcomm” in the mobile phone chip market.
Qualcomm has not initiated this investigation to prevent alleged infringement of its patent rights, but its complaint is a transparent effort to prevent legal competition from the only remaining rival of Qualcomm.
“This distorted use of the Commission’s file is just the latest in a long line of anti-competitive strategies that Qualcomm has used to nullify incipient and potential competitors and to avoid competition on merits.”
This dispute between Apple and the chip maker began with the refusal of the Cupertino company to pay the royalties that Qualcomm requires under its terms of contract. Apple objected to this business model, and in turn, Qualcomm accused the maker of iPhones of influencing the companies it has signed with, such as Foxconn, to withhold license payments.
Even today, news surfaced that a lobby group, called Computer & Communications Industry Associations, representing companies like Google, Microsoft, Facebook and Amazon, positioned itself alongside Apple as they filed arguments with the US International Trade Commission (ITC) against Qualcomm’s request to ban iPhones from being imported into the United States.
Since the beginning of the year, the legal dispute between Apple and Qualcomm has dragged on, with no indication of an impending resolution. A few days ago, the chipmaker’s CEO commented that an out-of-court settlement would be possible, which made us think the two sides could soon announce a “friendly” solution. But more companies joined Apple in battle.
“If the ITC granted this exclusion order, it would help Qualcomm to use its monopoly power to increase influence against Apple and allow them to raise prices on consumer devices,” Ed Black, CEO of the Association, said in a statement.”
The dispute puts at stake the royalty payments that Qualcomm requires in its terms of contract. Apple has opposed Qualcomm’s business model that requires customers to pay for patents.
In turn, Qualcomm has accused Apple of influencing manufacturers with whom it has a contract, such as Foxconn, to withhold license payments in an attempt to undermine Qualcomm. The conflict had an impact on the chip supplier’s profit outlook.