Apple stole the secrets of Qualcomm chips and gave them to Intel, says Qualcomm

Qualcomm has accused Apple of stealing modem chip models and giving them to Intel to help Intel manufacture cell chips that can be used in iPhones at prices lower than those used by Qualcomm.

"Apple has for years been carrying out a campaign of false promises, stealth and subterfuge aimed at stealing Qualcomm's confidential information and trade secrets in an effort to improve performance and accelerate the launch of the modem's chipsets. substandard, including those developed by Intel Corporation, Qualcomm's competitor, to make these chipsets usable in Apple iPhones and other devices, with the ultimate goal of diverting the Apple-based business from Qualcomm to Intel, " Qualcomm wrote in an amended complaint proposal.

In 2011, Apple launched the Verizon version of the iPhone 4, said Qualcomm. But Apple has begun to return to Intel chips in some models of the iPhone in 2016, apparently to get lower prices despite the decline in performance of Intel chips. Qualcomm alleges that the move to Intel in 2016 and the improvement of Intel chips since then have been aided by the illegal actions of Apple.

"Apple mistakenly acquired, failed to protect, misused, misdirected and stole Qualcomm's confidential information and trade secrets, and Apple used this stolen technology to hijack the Apple-based business of Qualcomm to Intel" said Qualcomm.

The new iPhone XS and XS Max use Intel modem chips.

Qualcomm's amended complaint is available here, courtesy of Axios. He has been filed in the California Superior Court for San Diego County and is now part of a lawsuit filed in November 2017.

Qualcomm's original complaint accused Apple of violating a software agreement by refusing to let Qualcomm verify Apple's compliance with this agreement. Qualcomm suspected Apple was sharing trade secrets with Intel at the time, but the company said the lack of auditing precluded an investigation.

Qualcomm's new complaint adds details that the company says it has learned since the beginning of the discovery. Qualcomm now alleges that Apple has committed a breach of contract and misappropriation of trade secret, and the company has sought damages covering "actual losses, unjust enrichment, lost profits and / or "Imposition of a reasonable fee", plus punitive and exemplary damages.

Apple claims that Qualcomm has no evidence

When contacted by Ars, an Apple spokesman said that Qualcomm had repeatedly made allegations without evidence.

"At the end of August, Apple filed a binding motion in the same case for Qualcomm to present evidence of its allegations because the company continued to make claims without justification," said Apple. .

Qualcomm's filing today also "does not include any evidence of [its] claims, "said Apple.

Qualcomm asserts that the master software agreement signed by both companies contains a provision allowing Qualcomm to audit Apple's compliance, but that Apple has not authorized such an audit.

"To date, despite repeated requests from Qualcomm, Apple has refused to allow Qualcomm to conduct an audit of Apple's compliance with the terms and conditions of [agreement], "Qualcomm wrote.

Qualcomm claims to have obtained further information since the filing of its complaint. "The discovery to date in this action indicates that the theft of information protected by Qualcomm by Apple goes far beyond the violation" that led to the filing of the complaint, said Qualcomm's amended complaint.

Discovery included "Apple-chipset-provider communications, as well as source code and related information in its possession," Qualcomm said.

Qualcomm also pointed to an "Internet publication regarding Intel's layoffs, which seems to have been made by a former Intel engineer working on an Intel modem chipset". According to Qualcomm, this post said: "We were told to ignore intellectual property rights when designing the modem, there was even a plot to copy Apple's Qualcomm technology to the reference device. "

Qualcomm also writes:

In terms of information and belief, Apple has long since devised a plan to improve the performance of non-Qualcomm chipset solutions, including those of Intel, by flying Qualcomm's technology and using it. to establish a second source of chipsets. and pricing, and ultimately to divert the Apple-based business from Qualcomm to Intel, from which Apple could extract more favorable terms. The illegal conduct of Apple has been calculated and ubiquitous, especially among its engineers working with chipsets Qualcomm and Intel.

Legal battle on several fronts

The lawsuit is one of several involving both companies. Apple sued Qualcomm in January 2017, alleging that the chip maker was charging billions of patent royalties "for unrelated technologies."

Apple also criticized Qualcomm in November 2017, alleging that the Qualcomm chips violate Apple's patents.

Apple referred today to a previous statement in June 2017 that accused Qualcomm of "illegal business practices."

"They provide us with a single connectivity component, but have required for years a percentage of the total cost of our products, effectively taxing Apple's innovation," said Apple's dated release. June 2017. "We believe deeply in the value of intellectual property, but we should not have to pay for technological breakthroughs unrelated to them.We have always been willing to pay a fair price for the standard technology used in our products, as they refused to negotiate reasonable terms, we are asking for help in the courts. "

Qualcomm's claims

From 2010, Qualcomm gave Apple "access to large portions of Qualcomm software, including the most sensitive and important source code layers of Qualcomm's leading modem," said Qualcomm's complaint.

This was an "unprecedented access" required by Apple, who said they needed the source code "to modify and integrate the code to allow Qualcomm chipsets to work in Apple devices, including iPhone ". To obtain the code, Apple agreed to "take a number of steps to ensure and maintain the confidentiality and security of Qualcomm's software, including the source code," according to the master software agreement, Qualcomm wrote.

Qualcomm alleges that Apple has violated the terms of this agreement and a separate agreement that allowed Apple to use the Qualcomm software development tools.

Apple violated the framework contract when "Apple engineers working to incorporate Intel chipsets into Apple devices" had access to Qualcomm's trade secrets, Qualcomm said.

"[A]After becoming aware of some performance issues with Intel's chipset solutions, Apple engineers have repeatedly accessed, used, and provided Intel engineers with Qualcomm software and confidential information, including source code. Qualcomm alleged.

Qualcomm said that Apple's "secret hijacking of Apple's proprietary trade secrets and other proprietary information" has allowed Intel to partially reduce the technology gap between its own modem chips and Qualcomm's.

"In fact, he apparently upgraded Intel chips to the point where Apple decided to transfer some of Apple's Qualcomm's business to Intel," writes Qualcomm. "In terms of information and belief, Apple has created and implemented this system in part to reduce its cost of goods and increase its commercial influence on Qualcomm, but to the detriment of Qualcomm for its trade secrets and its Apple business. "