Apple, Qualcomm spat intensifies, manufacturers drawn in

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The aforementioned contract manufacturers have stopped paying royalties they owe Qualcomm for the licensing of certain technology used on Apple's handsets and tablets.

Apple brought its own separate case against Qualcomm shortly after, suing for roughly $1 billion and alleging the company is "charging royalties for technologies they have nothing to do with" and "withholding almost $1 billion in payments from Apple as retaliation for responding truthfully to law enforcement agencies investigating them".

That means Qualcomm can collect money on every smartphone, even those that have chips made by other companies.

Qualcomm argued that the manufacturers acknowledge they have a contractual obligation to pay royalties to the chip makers, but they need to follow Apple's orders against paying.

He went on to say that "the manufacturers must continue to live up to their obligations under these agreements and Apple should immediately cease its tortious interference".

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This could get ugly, and Qualcomm might see some more 0s and 1s enter its accounts, real soon.

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

In Wednesday's complaint, Qualcomm alleges that Apple "orchestrated" the actions of the contract manufacturers against it.

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. They have continued to pay royalties for using Qualcomm's patents in non-Apple products, the filing said. The companies make iPhones and iPads for Apple.

"Pay for what you take and if you don't want to pay for it, don't take it", he said.

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The Korea Fair Trade Commission fined Qualcomm more than $850 million and seeks to dismantle the way it licenses its patents.

In addition to being one of the world's largest maker of chips for mobile devices, Qualcomm owns thousands of patents on fundamental technology that ensures all phones work.

Apple and regulators claim Qualcomm abuses its market power to overcharge for "standard-essential patents" and block competition.

The mess began when the FTC accused Qualcomm of effectively giving itself a monopoly by saying that it would charge Apple higher patent royalties unless the company agreed not to source baseband processors from its competitors. A hearing on the dismissal motion is slated for mid-June.

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