iPhone parts makers bring suit against Qualcomm

Foxconn, Pegatron, Wistron and Compal Electronics have sued Qualcomm for violating competition rules. The indictment is in response to a case brought by Qualcomm against Taiwanese manufacturers of iPhone components.

According to Reuters, the manufacturers filed the lawsuit in a US court in California on Tuesday. They argue that Qualcomm is violating US competition law. The Taiwanese manufacturers filed the case because Qualcomm itself filed a lawsuit in May and demanded damages from the companies for allegedly violating license terms. That charge is part of a larger battle between Qualcomm and Apple over license payments.

A lawyer for the four companies told Reuters that Qualcomm has admitted that the lawsuit against the manufacturers is intended to make a point and punish companies that partner with Apple. That is why the Taiwanese manufacturers come up with their own claims against Qualcomm.

The case between the American chip designer Qualcomm and Apple has been going on since January. Apple sued Qualcomm over a dispute over licensing fees. According to the iPhone maker, the chip designer is breaking the rules when licensing his patents. Apple wants a number of patents invalidated and demands that Qualcomm pay back a billion dollars. In addition, the chip designer must significantly reduce the amounts for license payments, according to Apple.

Qualcomm then filed suit against Apple in April. The company is demanding, among other things, compensation for non-compliance with agreements and wants Apple to stop interfering with agreements between Qualcomm and manufacturers that make parts for the iPhone and iPad. Apple would have instructed the manufacturers to stop paying license fees to the chip designer.