Qualcomm sues Apple’s contract manufacturers as battle between tech giants worsens

Qualcomm’s battle with Apple is heating up, as the mobile chip company hauls assemblers of the iPhone into a US court on claims they are failing to pay patent royalties.

Four Taiwanese contract electronics manufacturers led by Hon Hai Precision Industry, widely known by its trade name Foxconn, are not complying with obligations to pay for the use of patented technology, according to a complaint Qualcomm said it filed in federal court in San Diego, California. The three other companies sued are Pegatron Corp, Wistron Corp and Compal Electronics.

Unlike other smartphone companies, Apple does not have a direct license with Qualcomm and instead pays contractors to make its devices, parts of which are used to cover royalties such as those owed under agreements struck before the first iPhone appeared. The chipmaker blamed Apple for dragging its contract manufacturers into the dispute, saying the decision not to give them money for royalties had stopped them from paying Qualcomm, according to the complaint.

“Their gripe, their issue, appears to be with Apple,” said Qualcomm general counsel Don Rosenberg. “We’re suing to make the point that others shouldn’t be used by Apple to advance this agenda they have of attacking us.”

Qualcomm said Apple has agreed to cover the costs incurred by the contract manufacturers.