Four device manufacturing companies hit back at Qualcomm after they became embroiled in the US chipmaker’s spat with Apple, arguing: “Qualcomm should not be rewarded for its continuing monopolistic practices which have caused significant harm to each contract manufacturer”.
The companies, Compal, Foxconn, Pegatron and Wistron, all produce devices for Apple, which is involved in legal battles with Qualcomm. In May, Qualcomm took action against the device manufacturers, which had been withholding royalty payments related to Apple products they assembled.
“This lawsuit is yet another chapter of Qualcomm’s anticompetitive scheme to dominate modem chip markets, extract supracompetitive royalties, and break its commitments to licence its cellular technology on fair, reasonable and non-discriminatory (FRAND) terms,” the response said.
The defence presents a number of arguments against Qualcomm targeting different parts of its patent portfolio, including non-infringement of patents, invalidity of patents, and abuses of FRAND principles. It also includes defences based on US antitrust laws.
Theodore Boutrous, a lawyer for the four said in a statement to Reuters: “Qualcomm has confirmed publicly that this lawsuit against our clients is intended to make a point about Apple and punish our clients for working with Apple.”
According to The Wall Street Journal, Apple is looking to consolidate the manufacturer’s counter suit with its own action against Qualcomm. It also said the iPhone maker is covering expenses related to the quartet’s legal fees.