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Apple Accuses Qualcomm of Peeling Excessive Royalties

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Apple filed a lawsuit against Qualcomm for $1 billion, accusing mobile chip maker of peeling excessive royalties from it. Apple’s lawsuit, filed on Friday, claimed that Qualcomm has adopted “an abusive licensing model”, whereby “in order to purchase Qualcomm chips or obtain access to patents pledged to a cellular standard, Qualcomm demands that third parties pay Qualcomm a royalty much greater than the value of Qualcomm’s contribution to the standard – a value based on the entire price of the innovative products that only incidentally incorporate the standard.”

“Then, Qualcomm leverages its market power to extract exorbitant royalties, later agreeing to reduce those somewhat only in exchange for additional anticompetitive advantages and restrictions on challenging Qualcomm’s power,” Apple said. Read more

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