The suit alleges that Apple didn’t hold up its end of the bargain in separating engineers working with Qualcomm and Intel chips, and that the those working with Intel may have been given access to key information about its competitor’s technologies. The suit notes that in a request from Apple for proprietary Qualcomm information, an Intel engineer was on the distribution list.
The fight between Apple and Qualcomm started back in January when the FTC filed a complaint alleging that Qualcomm forced Apple to use its baseband chips for higher patent royalties. Apple followed with a $1 billion lawsuit against Qualcomm three days after the monopoly complaint.
Qualcomm contends that during negotiations to buy Qualcomm’s cellular modem chips that link smartphones to cellular networks, Apple demanded unprecedented access to Qualcomm’s “very valuable and highly confidential software,” including source code.
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“The source code is the magic sauce that makes the modem work,” said Jim McGregor, principal analyst with industry advisory firm Tirias Research. “You can understand why Qualcomm has a concern. Apple is using modems from two companies, and one of those companies is significantly behind Qualcomm in terms of technology” performance.
Currently, Apple manufactures its phones with chips from both Qualcomm and Intel, although a recent report from The Wall Street Journal indicated that the company could be dropping Qualcomm entirely as a result of the ongoing squabbles between the two companies.
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