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Qualcomm sues 4 Apple manufacturers over unpaid royalties

Qualcomm sued the iPhones manufacturers for failing to pay royalties on the chip maker's technology


Adani, Foxconn
Qualcomm said last month that Apple had decided to withhold royalty payments to its contract manufacturers that are owed to the chipmaker

Inc said on Wednesday that, it filed a complaint against the Group and three other contract manufacturers of Inc for not paying royalties.
The other manufacturers listed by were Pegatron Corp, Wistron Corp., and Compal Electronics Inc. filed the complaint in the United States District Court for the Southern District of California.
Qualcomm, the largest maker of chips used in smartphones, is a major supplier to and Samsung Electronics Co Ltd for modem chips that connect phones to wireless networks.
The maker sued in January, accusing it of overcharging for chips and refusing to pay some $1 billion in promised rebates. said last month that had decided to withhold payments to its contract manufacturers that are owed to the chipmaker, for sales made in the first quarter of 2017, until the dispute is resolved in court.

"While not disputing their contractual obligations to pay for the use of Qualcomm's inventions, the manufacturers say they must follow Apple's instructions not to pay," the said in a statement.
sought an order that would require the manufacturers to comply with their long-standing contractual obligations to the company, as well as declaratory relief and damages. The slashed its current-quarter profit and revenue forecasts in April, saying it excluded revenue receivable from those contract manufacturers.

Group is the trading name of Taiwan's Hon Hai Precision Industry Co, the main assembler of devices. The company's shares were marginally lower at $55.49 in premarket trading.