Qualcomm accuses Apple of sharing 'unprecedented access' to chip code with Intel

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Next Qualcomm sues Apple, accusing them of failing to abide by their software license, and additionally of using their unprecedented access to Qualcomm to benefit rival Intel.

The dominant chipmaker filed a lawsuit in a California state court claiming Apple broke a contract when it emailed Qualcomm asking for "highly confidential" information about how its chips work in devices that run an unnamed carrier's network. In addition, says Qualcomm, Apple requested proprietary information from Qualcomm and included an engineer from a competitor (read, Intel) in the email distribution list.

Apple responded to this, saying that the company had tried to negotiate before suing and that Qualcomm is abusing its position. But the escalating legal action is taking a toll on Qualcomm's financial performance-a 90 percent year-over-year drop in quarterly profit, the company CEO said on Wednesday. Apple's decision about next year's products comes after the San Diego-based Qualcomm withheld software needed to test chips in prototypes, the Wall Street Journal reported.

In its complaint, Qualcomm alleged that Apple was required under its contract to ensure that Apple engineers working with Qualcomm did not communicate details about Qualcomm chips to Apple engineers working on competing chips from Intel.

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Apple sued Qualcomm in January 2017 for almost $1 billion, claiming that Qualcomm had "unfairly insisted on charging royalties for technologies they have nothing to do with".

Apple will reportedly not use any Qualcomm components in 2018 (CNET/CBS Interactive). It widened its suppliers to include Intel for some versions of the iPhone beginning with the 7 model.

Qualcomm has raised the stakes in its ongoing legal battle with Apple by filing a new lawsuit with potentially enormous ramifications.

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