Qualcomm sues Apple for breach of software license contract

Apple continues to pay Qualcomm if it drops its modem

Bloomberg reports that the loss of Apple's business could cut Qualcomm's revenue by 7.5 percent. Qualcomm, which has worked with Apple for a decade, stopped sharing software after Apple filed a federal lawsuit in January accusing Qualcomm of using its market dominance unfairly to block competitors and to charge exorbitant patent royalties, a source said.

Qualcomm is alleging that Apple violated a software license contract to benefit rival chipmaker Intel Corp for making broadband modems, the latest salvo in their longstanding dispute.

The chipmaker filed the lawsuit against Apple on Wednesday in California state court in San Diego, adding yet another front to their bitter legal battle.

In its complaint to the ITC, Qualcomm asked the body to ban 'iPhones that use cellular baseband processors other than those supplied by Qualcomm´s affiliates'.

In January, Apple sued Qualcomm for almost $1 billion for charging a hefty price for royalties on technologies that Apple said the chipmaker should not be associated with.

In its 2017 fiscal results, Qualcomm revealed that its Q3 and Q4 2017 results were "negatively impacted as a result of actions taken by Apple and its contract manufacturers". It widened its suppliers to include Intel for some versions of the iPhone beginning with the 7 model.

Qualcomm alleged that in July, Apple emailed Qualcomm to request "highly confidential" information about how its chips work on an unidentified wireless carrier's network.

The contract Apple allegedly broke surrounds software created to make Qualcomm chips work with other iPhone components, Bloomberg first reported.

Reuters reported earlier this week that Apple would drop Qualcomm's chips altogether from its iPhones and iPads beginning next year.

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