Apple, Qualcomm spat intensifies, manufacturers drawn in

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"While not disputing their contractual obligations to pay for the use of Qualcomm's inventions, the manufacturers say they must follow Apple's instructions not to pay", the release says.

Qualcomm said the contract manufacturers are withholding iPhone royalties because Apple has refused to reimburse them, directed them not to pay and agreed to indemnify them against any damages they may incur by failing to pay royalties to Qualcomm. Our license agreements with Apple's manufacturers remain valid and enforceable.

Wistron Corp. and Compal Electronics Inc, which together are responsible for the manufacture of all iPhones and iPads worldwide. "Despite being just one of over a dozen companies that contributed to basic cellular standards, Qualcomm insists on charging Apple at least five times more in payments than all the other cellular patent licensors we have agreements with combined".

Now chipmaker Intel made a decision to add to the discussion and filed an Amicus Brief in opposition to Qualcomm's motion to dismiss the FTC's complaint.

"In addition to withholding payments from defendants for Qualcomm royalties, Apple instructed defendants to withhold corresponding royalty payments from Qualcomm", the filing reads.

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But why? Back in January 2017, the U.S. Federal Trade Commission filed a complaint charging Qualcomm with using anticompetitive tactics.

The case underscores the influence Apple wields over the companies that make its products and parts for them.

Qualcomm did not disclose the quantum of royalty owed to it by the manufacturers.

Qualcomm was little changed at $55.89 at 12:45 p.m.in NY trading, while Apple dropped 2.2 percent to $152 as broader markets fell amid political turmoil in Washington. The chipmaker says those four companies have "a long history of consistently paying royalties" but are now refusing to pay licensing fees on the Apple products they produce at Cupertino's request.

"We are suing to get our money", Rosenberg said. "You are responsible for paying that". Its technology is inside almost every smartphone. The FTC and Apple accused it of abusing its power in the chip business. Qualcomm counter sued last month, claiming that Apple provided misleading statements to regulators in an effort to punish the company. A hearing on the dismissal motion is slated for mid-June.

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