Qualcomm Chip Licenses Are Invalid: Apple Tells Court

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Apple Inc. widened a lawful attack on Qualcomm Inc. in disagreement to a U.S. federal court that license deals, which reserve the chip maker a part of every iPhone produced, were not worthy.

If victorious, the attack of Apple might weaken a core principle of business model of Qualcomm.

Apple prosecuted the San Diego-based company this year in January, claiming that the chip manufacturer inappropriately had withdrawn $1 Billion in refunds since Apple assisted Korean supervisory bodies inspect Qualcomm.

Qualcomm Chip Licenses Are Invalid: Apple Tells Court

The initial lawsuit of Apple was a comparatively narrow one aimed on whether it dishonored an agreement with Qualcomm by assisting supervisory bodies that were inspecting business practices of Qualcomm. But the new lawsuit extends Apple’s claims and looks to block longstanding business model of Qualcomm by employing a legal theory on the basis of a ruling occurred previous month.

The U.S. Supreme Court made it difficult for drug companies and manufacturers to manage how their goods are resold or used. This was demonstrated in a ruling in May in opposition of Lexmark International Inc., a printer company, in a patent argument over another firm’s resale of its worn ink cartridges.

In a brief by the media this week, Apple aimed at Qualcomm’s practice of needing users to sign agreements related to patent license prior to buying chips, named as “no license, no chips” in the industry.

The license permits Qualcomm to take a share of the entire selling price for iPhone in return for giving the modem chips that let smartphones link to cellular data system.

Apple quarreled that the decision comprising Lexmark showcased that Qualcomm was permitted to only “one reward” for its products and intellectual property.

Qualcomm should be permitted to charge for either a chip or a patent license, but not both, Apple quarreled.

Apple needs to be capable of buying chips with no signing the agreement of license that obliges it to pay a fraction of the total selling price of iPhone. Apple opposed that the court battle should be between Qualcomm and Apple.

For now, nothing can be said with assurance on this matter. All we need to do is wait and watch.