Apple is suing one of its most important suppliers (AAPL, QCOM)

Apple is suing Qualcomm, according to a lawsuit filed in federal court seen by Business Insider.Apple buys wireless modem chips from Qualcomm and pays it license royalties to use its wireless patents.Apple is accusing Qualcomm of withholding $1 billion in rebates under a deal they had struck to keep Qualcomm modems in Apple products, including the iPhone and iPad.Qualcomm held the rebates after Apple worked with Korean antitrust regulators looking into Qualcomm's licensing businesses, Apple said.Earlier this week, the FTC accused Qualcomm of monopolistic practices directly related to its intellectual property licensing business and cited its relationship with Apple.Qualcomm did not immediately return a request for comment.Apple said that Qualcomm charges Apple "at least five times more in" royalty payments than all of Apple's other patent licensors combined in a statement provided to Business Insider:"For many years Qualcomm has unfairly insisted on charging royalties for technologies they have nothing to do with. The more Apple innovates with unique features such as TouchID, advanced displays, and cameras, to name just a few, the more money Qualcomm collects for no reason and the more expensive it becomes for Apple to fund these innovations. Qualcomm built its business on older, legacy, standards but reinforces its dominance through exclusionary tactics and excessive royalties. Despite being just one of over a dozen companies who 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. To protect this business scheme Qualcomm has taken increasingly radical steps, most recently withholding nearly $1B in payments from Apple as retaliation for responding truthfully to law enforcement agencies investigating them. Apple believes deeply in innovation and we have always been willing to pay fair and reasonable rates for patents we use. We are extremely disappointed in the way Qualcomm is conducting its business with us and unfortunately after years of disagreement over what constitutes a fair and reasonable royalty we have no choice left but to turn to the courts."Here is Apple's complaint:Apple Qualcomm by Kif Leswing on ScribdSEE ALSO:Protesters blocked Uber headquarters because of its ties to TrumpJoin the conversation about this story
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