Qualcomm Loses Bid to Dismiss Apple Manufacturers' Suit Over Royalties

By Tripp Mickle and Ted GreenwaldFeaturesDow Jones Newswires

A federal judge Friday denied Qualcomm Inc.'s motion to dismiss a patent-royalty lawsuit brought by Apple Inc.'s leading manufacturers, allowing the manufacturers to continue withholding royalty payments as the case continues.

The decision was a small but expected victory for Apple in what is shaping up to be a multiyear battle with Qualcomm over royalty prices for technology used in iPhones and iPads.

Continue Reading Below

In January, Apple sued Qualcomm in the Southern District of California over its licensing practices, alleging the chip supplier demanded unfair terms for its technology. Apple later filed suits in several overseas markets, including the United Kingdom, China, Japan and Taiwan.

In addition to ruling against Qualcomm in the contract manufacturers' case, the federal judge denied Qualcomm's motion to unify Apple's overseas suits.

Apple said it was pleased with the decision, adding "Qualcomm must establish the fair value of its technology and defend its business practices in court."

A Qualcomm spokeswoman said, "While we are disappointed by today's rulings, we recognize that the motions involved high procedural hurdles."

Write to Tripp Mickle at Tripp.Mickle@wsj.com and Ted Greenwald at Ted.Greenwald@wsj.com

(END) Dow Jones Newswires

September 08, 2017 14:06 ET (18:06 GMT)