The Latest On Apple's Legal Battle With Qualcomm

Apple Inc. AAPL's ongoing legal and financial dispute with QUALCOMM, Inc. QCOM may have taken a turn for the worse for the chip maker.

On Tuesday, Apple filed an amended complaint against Qualcomm and argued that some of its patents are invalid and other patents are unenforceable due to patent exhaustion.

Apple's latest claims could undermine Qualcomm's core business model, Reuters suggested. The latest developments sent Qualcomm's stock lower by around 0.75 percent Wednesday morning.

Apple is also accusing Qualcomm of operating as a monopoly and is in violation of California's unfair competition law. The iPhone maker believes Qualcomm's licenses with Apple's contract manufacturers are unenforceable and is therefore entitled to restitution for money paid by various contract manufacturers for exhausted patents.

Wells Fargo: Expect A Long Fought Bottle

Apple's filings on Tuesday is likely a strategy to broaden the litigation process and pressure Qualcomm by citing a Supreme Court ruling, which affirms a patent holder cannot be rewarded more than once for the same patent, Wells Fargo's Maynard Um commented in a report.

Apple is trying to make the case that Qualcomm's business model acts against existing patent laws as it charges for the baseband chips and requires manufacturers to pay license fees, the analyst added.

"We believe the legal battle between the two companies will likely continue and the case may take some time to go to trial and even further for decision," Um added.

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Posted In: Analyst ColorNewsLegalAnalyst RatingsTechMaynard UmpatentPatent LawsQualcommQualcomm Apple Dispute
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