In January, around the same time Apple sued Qualcomm, a Qualcomm shareholder filed a class-action lawsuit against the company, demanding compensation for a fall in share prices that he blamed on the way Qualcomm's management has handled its anti-trust controversies. In the filing, Qualcomm reportedly accuses Apple of abusing its commercial leverage to access and then unlawfully using sensitive intellectual property.
In its complaint to the ITC, Qualcomm asked the body to ban 'iPhones that use cellular baseband processors other than those supplied by Qualcomm´s affiliates'.
As things now stand, Apple utilizes chips from Qualcomm and Intel, so suitable terms must be agreed before they can continue with their mutually beneficial collaboration. It widened its suppliers to include Intel for some versions of the iPhone beginning with the 7 model.
Qualcomm claim that Apple hasn't protected their software sufficiently, which they legally agreed to, and say Apple aren't allowing for a proper audit to review how the iPhone handles their software. Second, the iPhone maker has been manufacturing some of its devices with Intel modems since previous year, which could potentially give Qualcomm's allegations more weight in court. Despite its efforts, it would seem that the chip maker is coming out as the loser in this battle, with its Q4 earnings report revealing a 90 percent drop in profits.
The two companies are involved in a number of lawsuits.
The contract Apple allegedly broke surrounds software created to make Qualcomm chips work with other iPhone components, Bloomberg first reported. The company said it is "committed to supporting Apple's new devices" as it does for others in the industry.