Qualcomm accuses Apple of stealing chip secrets and giving them to Intel
Qualcomm accuses Apple of stealing chip secrets and
giving them to Intel
·
Qualcomm hopes the court will amend its
allegations in an existing lawsuit against Apple for breaching the so called
master software agreement that Apple signed when it became a customer of Qualcomm's
earlier this decade.
·
The filing is the latest salvo in that dispute,
designed to put pressure on Apple to settle.
·
Qualcomm is alleging the source code and tools
were stolen for the express purpose of helping Intel overcome engineering flaws
in its chips that led to their poor performance in iPhones.
By David Faber September 25, 2018 CNBC.com
Qualcomm has unveiled explosive charges against Apple,
accusing it of stealing "vast swaths" of confidential information and
trade secrets for the purpose of improving the performance of chips provided by
rival Intel, according to a court filing.
Qualcomm hopes the court will amend allegations in its
existing lawsuit against Apple accusing it of breaching the so called master
software agreement that Apple signed when it became a customer of Qualcomm's
earlier this decade.
The two companies have been embroiled in direct and
indirect litigation around the globe centered on Apple's unwillingness to have
its suppliers pay Qualcomm royalties it deems excessive for the iPhone.
The filing, made overnight in Superior Court in San
Diego, is the latest salvo in that fight, designed to put pressure on Apple to
settle. But Qualcomm's general counsel, Donald Rosenberg, told CNBC the case
stands on its own and would have been filed regardless of the on-going dispute.
"Unlawful use of Qualcomm's valuable trade secrets
to try to help a competitor catch up irreparably harms us and must not be
allowed to continue," he said.
The new charges are part of a separate lawsuit filed in
November alleging that Apple was in violation of the agreement it signed with
Qualcomm when it began work to use Qualcomm's chips in the iPhone. That
agreement required Apple to allow Qualcomm to periodically insure that the
source code software and tools it was sharing with Apple as part of the
agreement were being appropriately protected.
Provided to Intel engineers
Qualcomm argues it was being prevented from auditing
Apple's use of its source code and sued. Now, it is alleging a far larger
misdeed: the stealing of that same source code and tools, for the express
purpose of helping Intel overcome engineering flaws in its chips that led to
their poor performance in iPhones.
In its complaint, Qualcomm says it is making the latest
charges after discovery in the current lawsuit allowed it to unearth evidence
that Apple engineers repeatedly provided source code and other confidential
information to Intel engineers so they could improve the performance of Intel's
chips.
Qualcomm does not provide direct evidence to support the
allegations but does make reference to back and forth between Apple and Intel
engineers that was found during discovery. Sources say the evidence includes
not just email correspondence, but Apple's source code development history and
the code used in Intel-based phones.
Qualcomm is hoping its latest charges will be added to
the current lawsuit against Apple and that the case will still be on track for
its current court date of April.
Apple did not yet respond to CNBC's requests for comment.
Intel declined to comment.
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