Qualcomm sues Apple for contract breach

(Reuters) – Qualcomm Inc (QCOM.O) has sued Apple Inc (AAPL.O), alleging that it violated a software license contract to benefit rival chipmaker Intel (INTC.O) for making broadband modems, the latest salvo in a longstanding dispute between the two companies.

FILE PHOTO: A man looks at the screen of his mobile phone in front of an Apple logo outside its store in Shanghai, China on July 30, 2017. REUTERS/Aly Song/File Photo

Qualcomm alleged in a lawsuit filed in the California state court in San Diego on Wednesday that Apple used its commercial leverage to demand unprecedented access to the chipmaker’s highly confidential software, including source code.

Apple, which could not be immediately reached for comments, started using Intel’s broadband modem chips in the iPhone 7.

Reuters had reported earlier this week that Apple would drop Qualcomm’s chips altogether from its iPhones and iPads from next year.

(The story is corrected to add dropped word “not” in paragraph 3)

Reporting by Sonam Rai in Bengaluru; Editing by Arun Koyyur

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