Apple wants court to invalidate Qualcomm's business practice

|About: Apple Inc. (AAPL)|By:, SA News Editor

Apple (NASDAQ:AAPL) wants a court to rule Qualcomm’s (NASDAQ:QCOM) royalty license agreements invalid, according to Reuters. If the court rules in Apple’s favor, Qualcomm’s business model will take a serious hit.

The claim comes as part of a lawsuit Apple filed alleging Qualcomm improperly kept back $1B of Apple’s rebates after the tech giant participated in a Korean investigation into Qualcomm. 

Qualcomm makes partners sign a royalty guaranteeing license agreements before the company provides the chips. Apple wants to buy the chips without signing away a cut.

Apple’s new filing claims Qualcomm doesn’t have the right to benefit from both the sale of the chip and the use of the chip, citing the recent Supreme Court decision ruling Lexmark can’t prohibit another company from reselling its used ink cartridges. 

Apple also asked the court to stop Qualcomm’s lawsuits against Apple supplier Foxconn and three other suppliers, the technical buyers of the chips Apple uses.   

Previously: Qualcomm advances lawsuit against Apple manufacturers (May 25)